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How To Remove Late Payments From Your Credit Report
By Victor Rosario MONEY RESEARCH COLLECTIVE
Your credit report — and subsequently, your credit score — plays a very important role in many aspects of your financial life. A healthy credit record can be the key to unlocking beneficial products and competitive terms, while a poor history could mean a roadblock to buying a home, opening a credit card account, or even getting a good rate on your auto insurance coverage.
Your credit history is comprised of many different factors, one of the most important of which is your payment history. Even a single late payment has the ability to tank your score for years to come. Is it possible to remove late payments from your credit report? And if so, how?
Table of contents
- How do late payments affect your credit report?
- How long will a late payment be reflected on your credit reports?
- When to remove late payments from your credit report
- How to delete late payments from your credit report
- Ways to dispute inaccurate late payments on a credit report
- How to remove late payments from your credit report FAQs
How do late payments affect your credit report?
Your credit report is a record of your financial history for the last seven years or so, showing what sort of accounts you’ve held and how well you’ve managed them. These reports are prepared, managed and tracked by each of the three major credit reporting agencies (Experian, Equifax, and TransUnion). The information they contain is used to calculate your credit score.
Credit reports track things like:
- New credit inquiries
- Existing and recently closed accounts (such as credit cards, home and auto loans, and lines of credit)
- Current balances
- Credit limits
- Payment history
Each of these data points can give potential credit card issuers and lenders an inside look at how well you manage your financial accounts, including maintaining reasonable debt levels and making on-time payments each month. Failing to make your payments on time (every time!) can be incredibly detrimental to your credit, especially since your payment history accounts for 35% of your FICO score.
Your payment history is maintained on a rolling basis, only falling off after seven years have passed. This means that a single late payment can follow you — and drop your credit score — for the better part of a decade.
How long will a late payment be reflected on your credit reports?
Late payments can stay on your credit reports for up to seven years from the date of the missed payment. The impact of the late payment on your credit score will lessen over time, but it can still have a negative effect on your creditworthiness and ability to obtain credit.
It’s important to make all of your payments on time to avoid damaging your credit score and financial reputation. If you do have a late payment, it’s best to work with your creditor to make arrangements to bring the account current as soon as possible.
When to remove late payments from your credit report
There are many reasons why you might miss a payment-due date. Maybe a check was lost in the mail, your automatic payments unexpectedly stopped, a parent got sick, or you experienced financial hardship. Regardless of the reason, that late payment can still affect you for years to come.
Unless, of course, you know how to remove items from your credit report.
Depending on your situation, you can sometimes remove negative items like late payments from your credit report. This will serve to immediately boost your credit score and make you a more enticing consumer to lenders. You may even be able to remove collections from your credit report or (in some instances) remove charge-offs from your credit report, too.
Some situations where removing a late payment might be possible include:
- You have an otherwise-perfect payment history
- The payment wasn’t actually late
- You were experiencing a financial hardship
- You (or someone in your immediate family) fell ill or was seriously injured
How to delete late payments from your credit report
There are many reasons why you might miss a payment-due date. Maybe a check was lost in the mail, your automatic payments unexpectedly stopped, a parent got sick, or you experienced financial hardship. Regardless of the reason, that late payment can still affect you for years to come.
Unless, of course, you know how to remove items from your credit report.
Depending on your situation, you can sometimes remove negative items like late payments from your credit report. This will serve to immediately boost your credit score and make you a more enticing consumer to lenders. You may even be able to remove collections from your credit report or (in some instances) remove charge-offs from your credit report, too.
Some situations where removing a late payment might be possible include:
- You have an otherwise-perfect payment history
- The payment wasn’t actually late
- You were experiencing a financial hardship
- You (or someone in your immediate family) fell ill or was seriously injured
Even if you aren’t sure whether your creditor would agree to remove the late payment from your credit history, it never hurts to ask. Here’s how you can potentially get late payments deleted:
- Check your credit. Knowing where you stand is the first step toward improving your credit report. Be sure to request a copy of your free credit report at least once a year from AnnualCreditReport.com, checking for any errors or signs of identity theft, such as fraudulent accounts. It can also be wise to check your credit score regularly and watch for changes.
- Look for mistakes. Errors are distressingly common in credit reports, so be sure to pick through yours with a fine-toothed comb. If a past due payment is reported but you actually made that payment on time, you have a good chance of getting it removed quickly. If the creditor doesn’t fix the inaccurate information, you can also file a credit dispute with the credit bureaus directly.
- Call the creditor. You’ll want to work with your creditors first to try and get reports of late payments removed. They won’t always fulfill your request, but it’s often the easiest place to start.
- Make your request. If you find an error on your credit report, the creditor can usually help you get it corrected pretty quickly. If you’re requesting that a late payment report be removed due to extenuating circumstances, your mileage may vary. Be polite and explain your situation when making the request; if you have any supporting documentation, you might want to offer that, too.
- Write a hardship letter. If you’d rather make your request in writing, you can also do that through a hardship or goodwill letter. This letter is your way of asking a creditor to remove a late payment out of the kindness of their heart. You can use this letter to explain your situation and why the payment was late; if you have otherwise been a great customer, be sure to mention that, too!
- Wait. Whether you make your request over the phone or through the mail, expect the process to take at least a few weeks. You may or may not hear back from the company, either — in some cases, you’ll get your answer when you see that the reported delinquency has been removed.
With the exception of errors, creditors aren’t obligated to remove late payments from your credit. Try to remain patient and kind while making your request, and you may just better your chances. However, if you run into problems or don’t have the time, you could always consider hiring a credit repair company.
Ways to dispute inaccurate late payments on a credit report
If you believe that there is an inaccurate late payment on your credit report, there are several steps you can take to dispute it:
Review your credit report
Obtain a copy of your credit report from each of the three major credit bureaus (Equifax, Experian and TransUnion) and review it thoroughly to identify any inaccuracies.
Gather supporting documents
Collect any supporting documents that show that the late payment is inaccurate. This could include bank statements, receipts or correspondence with the creditor.
Write a dispute letter
Write a letter to the credit bureau(s) that reported the inaccurate information. In the letter, explain the error and provide any supporting documentation. Be sure to include your name, address and Social Security number, and clearly identify the item(s) you are disputing.
Send the letter
Send the dispute letter to the credit bureau(s) by certified mail, return receipt requested, so that you have proof that it was received.
Wait for a response
The credit bureau(s) have 30 days to investigate your dispute and respond to you with their findings. If they determine that the late payment is inaccurate, they must remove it from your credit report.
If the credit bureau(s) do not resolve the dispute to your satisfaction, you may need to escalate the matter and consider seeking legal assistance.
Summary of our guide on how to remove late payments from a credit report
Late payments can be detrimental to your credit report, whether the payment was made with a major credit issuer, lender, or other type of creditor. These late payments can affect your credit for up to seven years, causing a dip in your credit score and affecting your creditworthiness with new lenders. They can be removed if you find an error; if the late payment was valid, though, you still may be able to successfully request their removal if you made a one-time mistake or were experiencing a hardship of some kind.
