How to Remove a Late Payment From Your Credit Report

Late payments on a credit report can significantly hinder financial well-being. These entries indicate a payment was made beyond the due date, often by 30 days or more, and they can negatively impact credit scores for an extended period. This article provides steps for consumers to manage late payment entries on their credit reports.

Identifying and Documenting Late Payment Discrepancies

The initial step in addressing late payments involves reviewing your credit reports. Consumers are entitled to a free copy from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. Regularly checking these reports allows for early detection of inaccuracies.

When reviewing reports, examine each account for late payment notations. Look for discrepancies such as payments reported late when made on time, incorrect payment dates, or payments listed for accounts you do not recognize or never opened. Verify payment amounts are accurate and there are no duplicate entries for the same late payment.

Gathering supporting documentation is a crucial preparatory step before initiating any formal action. Collect evidence such as bank statements showing on-time payment, canceled checks, or payment confirmation emails from the creditor. Statements from the creditor indicating a history of on-time payments, or personal payment records, also serve as valuable evidence. Organizing this information strengthens any claim of inaccuracy.

Formal Dispute Process for Inaccurate Information

Once you identify an inaccurate late payment and gather supporting documentation, formally dispute the information. You can initiate a dispute directly with the credit bureaus through their online portals, by mail, or via phone. When submitting a dispute, clearly reference the specific account and the inaccurate late payment, attaching copies of your prepared documentation.

Disputing directly with the original creditor can also be a beneficial parallel approach. Creditors have their own processes for reviewing account information, and resolving the issue directly with them can lead to a quicker resolution. Provide them with the same comprehensive documentation that you prepare for the credit bureaus, explaining the discrepancy clearly.

Federal law, the Fair Credit Reporting Act (FCRA), mandates that credit bureaus and creditors investigate disputes within 30 days, or up to 45 days if you submit additional relevant information. After submitting a dispute, you should receive updates on the investigation’s progress. If the investigation confirms the information is inaccurate, the late payment will be removed, and you will receive an updated credit report reflecting the correction.

Strategies for Requesting Removal of Accurate Late Payments

Even if a late payment is accurately reported, there are still avenues to seek its removal through a “goodwill request.” This approach is most appropriate for isolated incidents, especially when you otherwise maintain a strong payment history, or if there were genuine mitigating circumstances that led to the late payment. Unlike disputes for inaccuracies, a goodwill request relies on the creditor’s discretion and is not a guaranteed outcome.

When crafting a goodwill letter, maintain a polite and respectful tone. Clearly identify the specific late payment you are addressing, providing the account number and the date of the late payment. Briefly explain any mitigating circumstances that contributed to the late payment, such as a medical emergency or a temporary financial hardship, without making excuses.

In your letter, express a sincere commitment to making all future payments on time. Conclude by politely requesting a one-time courtesy removal of the late payment entry from your credit report, emphasizing your otherwise responsible payment history. You can submit a goodwill request by sending a letter via certified mail, using a secure online message portal, or by making a polite phone call to their customer service. Patience is important after sending a request, and a polite follow-up may be appropriate, as creditors have no legal obligation to grant these requests.