How to Remove a Delinquent Payment From a Credit Report

A delinquent payment on a credit report indicates that a borrower has failed to make a scheduled payment by its due date. This status appears when a payment is at least 30 days past due, as reported to credit bureaus. The presence of delinquent payments on a credit report can harm an individual’s credit score, affecting their ability to secure future loans, credit cards, or even housing at favorable terms. Consumers often seek to address these negative entries because they can impede financial goals and lead to higher interest rates on new credit.

Identifying Errors on Your Credit Report

Consumers can obtain free copies of their credit reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com. This service allows access to one free report weekly from each bureau. Regularly reviewing these reports helps identify potential inaccuracies that could be impacting one’s credit standing.

When examining a credit report, consumers should check for various types of errors related to delinquent payments. These include incorrect payment statuses, such as an account reported as 60 days late when it was only 30 days past due, or an account mistakenly marked as delinquent despite on-time payments. Other common errors involve wrong dates of delinquency, incorrect account numbers, or accounts that do not belong to the consumer, which may indicate identity theft or a mixed file error. Gather supporting documentation, such as bank statements, canceled checks, or payment confirmations, to prove the information is inaccurate.

Disputing Inaccurate Delinquent Payments

Once an inaccurate delinquent payment is identified, formally dispute the entry. Consumers can initiate disputes directly with the credit bureaus (Equifax, Experian, or TransUnion) online, by mail, or by phone. Dispute the information concurrently with the original creditor or “furnisher,” as both have responsibilities under the Fair Credit Reporting Act (FCRA) to investigate inaccuracies.

A dispute letter should clearly state the inaccurate item, including the account number, the specific reason for the dispute, and what information is incorrect. Attach copies of supporting documents, rather than originals, to substantiate the claim. Under the FCRA, credit bureaus typically have 30 days to investigate a dispute upon receipt. The credit bureau will forward the dispute to the furnisher, which must investigate and report its findings. If the information is found to be inaccurate or cannot be verified, it must be corrected or removed from the credit report.

Strategies for Accurate Delinquent Payments

Addressing accurately reported delinquent payments that a consumer wishes to remove requires different strategies. One approach involves a “pay for delete” request, primarily used for collection accounts. This strategy entails negotiating with a debt collector to remove the negative entry from the credit report in exchange for payment of the debt, either in full or a negotiated settlement. While not illegal, credit reporting agencies generally discourage this practice, and creditors are not obligated to agree to such requests, as the FCRA requires accurate reporting of information.

If a debt collector agrees to a pay-for-delete, it is imperative to obtain the agreement in writing before making any payment. This written confirmation should explicitly state that the negative item will be deleted from the credit report upon receipt of payment. Without a written agreement, there is no guarantee the collector will follow through with the deletion. Another strategy for accurate items is a “goodwill adjustment,” where a consumer requests the original creditor to remove a negative mark, such as a late payment, as a gesture of goodwill. This approach is effective when the delinquency was a one-time occurrence due to unforeseen circumstances and the account has an otherwise positive payment history. Creditors are not required to grant goodwill requests, and larger institutions may have policies against removing accurate information due to reporting obligations.

Understanding How Long Delinquencies Remain

The Fair Credit Reporting Act establishes standard reporting periods for most negative information on credit reports, including delinquent payments. Most adverse items, such as late payments, remain on a consumer’s credit report for seven years from the date of the original delinquency. This seven-year period begins from the date the payment first became 30 days past due, not from when the account was paid or closed.

There are exceptions to this seven-year rule. Bankruptcies can remain on a credit report for up to 10 years, while certain tax liens or criminal convictions may stay longer. Understanding these mandated timelines is important for managing expectations about when negative information will naturally fall off a credit report. Even if a delinquent account is paid, the record of the delinquency remains until the seven-year period from the date of first delinquency has passed.