How to Request Late Payments Be Removed From Credit Report

Late payments impact credit as negative marks. They show a missed payment and can stay on reports for up to seven years. A single late payment can drop credit scores, affecting access to loans, credit cards, or housing. However, there are ways to remove them.

Preparing Your Request

To address late payments, gather information and understand your situation. Obtain your credit report from Experian, Equifax, and TransUnion. Federal law provides access to one free credit report from each bureau annually through AnnualCreditReport.com. Reviewing all three reports is important because not all creditors report to every bureau, meaning a late payment might appear on one report but not another.

Once you have your reports, identify late payment entries. For each, note the creditor’s name, account number, delinquency date, and reported amount. This confirms accuracy and provides specifics for requests or disputes. Gather supporting records like bank statements, creditor correspondence, or documentation for legitimate delays.

Understand each late payment’s nature to decide the best removal approach. For isolated incidents or oversights, a goodwill request may be appropriate. If an entry is an error or misreporting, a formal dispute is the correct path. For older, severe delinquencies, especially those in collections, consider a pay-for-delete agreement.

Requesting Removal Through Goodwill

A goodwill request can remove an isolated late payment if your payment history with the creditor has been positive. It is most effective for a single late payment on a well-maintained account, especially with a legitimate reason like a medical emergency or temporary hardship. Creditors are more inclined to consider requests if you show commitment to timely future payments.

Draft a goodwill letter with a polite tone. Explain the circumstances without excuses, emphasizing your diligent payment history. Request the late payment’s removal as a gesture of goodwill, reaffirming your dedication to future on-time payments. Include your account number and contact information for easy identification and response.

Send letters to the creditor’s customer service or credit reporting department, found on their website or billing statement. While online portals or phone calls may be accepted, a written letter provides a more formal record. Response times vary (weeks to over a month), and removal is not guaranteed, as it’s at the creditor’s discretion.

Disputing Inaccurate Late Payments

If a late payment entry is incorrect, dispute it. This applies if a payment was on time but reported late, the account isn’t yours due to identity theft, or the reported date/amount is wrong. Federal law (Fair Credit Reporting Act) mandates credit bureaus and furnishers ensure data accuracy.

Initiate a dispute directly with Experian, Equifax, and TransUnion via their online portals or by mail. State inaccurate information, provide your account number, and include supporting documentation like bank statements or canceled checks. The credit bureau has an obligation to investigate the disputed information within 30 days of receiving your dispute.

Dispute inaccurate information directly with the creditor simultaneously. This dual approach expedites the investigation. The creditor must also investigate disputes and report findings to credit bureaus. If the investigation confirms the information is inaccurate, the late payment entry must be corrected or removed from your credit report.

Negotiating a Pay-for-Delete Agreement

A “pay-for-delete” agreement is a strategy for older, severe delinquencies, like accounts in collections or charged off by the original creditor. It involves offering to pay part or all of a debt in exchange for the collection agency or creditor removing the negative mark. Not all creditors or collection agencies will agree, as they are not legally obligated.

To initiate, contact the collection agency or creditor directly to discuss settlement. State your offer to pay the debt for removal of the derogatory mark. Get the agreement in writing before making any payment. The written agreement should explicitly state that upon payment, the creditor or collection agency will remove the negative entry from all three major credit bureaus.

Without a written agreement, removal is not guaranteed, even after payment. Paying without a written agreement could mark the debt “paid” but leave it as a negative item for up to seven years. Therefore, obtaining a clear, written commitment for deletion is essential.

Monitoring Your Credit and Next Steps

After submitting a removal request or dispute, follow up and monitor your credit to ensure the desired outcome. For disputes filed with credit bureaus, the investigation process takes about 30 to 45 days. For goodwill letters or pay-for-delete agreements, allow a similar timeframe for the creditor or collection agency to process your request and update credit bureaus.

After the timeframe, re-check your credit reports from all three major bureaus to verify late payment removal. This confirms the creditor or bureau fulfilled their agreement or adjusted inaccurate information. If the late payment isn’t removed or your dispute is denied, consider re-disputing with more evidence or escalating to consumer protection agencies like the Consumer Financial Protection Bureau (CFPB).

Regularly monitor your credit reports and scores, even after removing a late payment. This vigilance helps identify new inaccuracies or unauthorized activity, maintaining your credit profile’s health and accuracy. Free credit monitoring services are often available through credit card companies or financial institutions, providing alerts to significant report changes.