How to Remove Late Payments on a Credit Report

A late payment on a credit report signifies that a payment for a credit account was not made by its due date. This negative mark can significantly impact one’s credit score, which is a numerical representation of creditworthiness. Lenders and creditors rely on these scores to assess risk, influencing interest rates, loan approvals, and even rental applications. Understanding the details of these entries and how to address them is an important step in maintaining a healthy financial profile.

Accessing and Understanding Your Credit Report

Obtaining your credit reports is the foundational step in identifying late payment entries. The three major credit bureaus—Experian, Equifax, and TransUnion—each maintain their own version of your credit history. You are legally entitled to a free copy of your credit report from each bureau once every 12 months through AnnualCreditReport.com, the only source authorized by federal law to provide these free reports.

When reviewing your credit report, carefully examine each account listed. For late payments, the report will show the creditor’s name, the account number, the date the payment was missed, and the severity of the delinquency (30, 60, 90, or 120 days past due). The balance at the time of the late payment may also be included. This detailed information is crucial for understanding the reported late payment and preparing actions.

Verifying Late Payment Details

After accessing your credit reports, verify the accuracy of any reported late payments. This process requires comparing the information on your credit report with your personal financial records. Relevant documents for this cross-referencing include bank statements, payment confirmations, and billing statements.

Determine if the late payment entry is accurate or if a discrepancy exists. Confirm whether the payment was truly late, if the reported amount was correct, and if it pertains to the correct account. Discrepancies can arise from a payment being made on time but misreported by the creditor, identity theft where an account was opened fraudulently, or an incorrect account number being associated with the late payment. This thorough verification dictates the appropriate course of action.

Preparing a Dispute for Errors

When a late payment appears inaccurate, preparing a formal dispute is necessary. Inaccuracies can stem from errors such as a payment posted on time but reported late, an incorrect amount due, or an account that does not belong to you, possibly due to identity theft. The Fair Credit Reporting Act (FCRA) grants you the right to dispute such inaccuracies on your credit report.

To support your claim, gather all relevant evidence. This might include bank statements showing on-time payments, copies of canceled checks, email confirmations, or any correspondence with the creditor regarding the account. When drafting a dispute letter, include your personal identifying information, the account number, and a clear, concise explanation of the item being disputed and the reason for the dispute. Always attach copies of your supporting documentation, never the originals.

Submitting a Formal Dispute

With your dispute prepared, submit it to the relevant parties. You can submit your dispute directly to each of the three major credit bureaus—Experian, Equifax, and TransUnion—through their online dispute portals, by mail, or by phone. If inaccurate information appears on multiple credit reports, dispute it with each credit bureau individually to ensure all reports are corrected.

You can also dispute directly with the creditor who reported the information. When mailing a dispute, sending it via certified mail with return receipt requested provides proof of delivery. Credit bureaus are required to investigate disputes within 30 days, or up to 45 days if additional relevant information is provided during the investigation. After their investigation, they communicate their findings and update your report if an error is confirmed.

Requesting Goodwill Adjustment

For accurate late payment entries you wish to have removed, a goodwill adjustment may be an option. This involves sending a “goodwill letter” to the creditor, acknowledging the late payment and politely requesting its removal as a gesture of goodwill. The letter should briefly and sincerely explain any extenuating circumstances that led to the late payment, without making excuses, such as a medical emergency or a temporary financial hardship.

Highlighting a history of consistent on-time payments before and after the incident can strengthen your request, demonstrating that the late payment was an isolated event. Politely ask the creditor to consider removing the late payment, emphasizing your commitment to responsible financial behavior. Address the letter to the creditor’s customer service department or, potentially their executive office, and send it through mail or their secure message center if available. While creditors are not obligated to grant these requests, a well-reasoned and polite letter can sometimes lead to a positive outcome, especially if you have a strong payment history otherwise.