How to Remove Late Payments From Your Credit Report

The impact of late accounts on your credit reports could greatly impact your credit scores and make it difficult to get loans or get favorable interest rates. To begin to repair your credit score it is crucial to understand how late payments impact your credit score and to research the most efficient methods to the removal of late payments.

What are the effects of late payments on your credit score?

A single missed or late payment in your credit file could ruin your credit score. Recent late payments either for an automobile, credit card or mortgage, could result in your FICO score to fall by between 90 and 110 points.

The impact on your credit score diminishes as time passes until you can remove the late payment from your credit file. However, creditors who are interested may still view your payment history as long as it’s on your credit report.

Late payments are classified as 30, 60, 90, or 120-plus days late, each having different consequences for the credit score. The more recent and later the payment is, the greater damage it can do to your credit score.

When do late payments get reported?

Creditors usually report late payments to credit bureaus when they are 30 days over due. However, some credit bureaus may not report at all, especially for clients with good credit scores, while some may be patient until the account has been closed.

A payment that’s 90 days or more late will affect your credit more and could turn into a charge-off when the creditor sells the balance owed to an agency for collection. To avoid further damage it is essential to make the late payment in full.

How long will late payments remain on your credit report?

Late payments will remain in your credit history for up to seven years regardless of whether they’re thirty or sixty days behind. Contrary to what many believe there is no need to wait for up to seven years before you can to obtain a car loan, mortgage or any other type of credit.

Credit scores for your credit will slowly increase with time. The best part is that there are a variety of ways to have the late payment permanently erased or updated.

Here’s a summary of what you can expect based on the time of your transaction:

• Less than 30 calendar days overdue: If you miss the due date, but make up the difference before the 30-day mark, you’re good position. Creditors usually do not make late payments public until they’re 30 days late However, they do have late fee charges.
• 30-day or more late: Once your payment is due 30 days late the payment will make it onto your credit report. Don’t forget to make the late payment. Be sure you get it addressed promptly.
• over 60 days late: Failure to pay for the late payment and not paying by the due date on the next day will result in a 60-day late notice appearing on your credit report. It can also lead to affecting your credit score. A series of missed payments can result in further notices, account closures and even a the debt being referred to an agency for collection.

How to Remove Late Payments From Your Credit Report

The late payment can be wiped off or changed to “never late” on your credit report. It’s quite simple to do this if you follow the correct steps and you have the option of choosing among a number of options.

The method you choose is based on your credit history, your relationships to the lender, as well as your willingness to invest time and money spend on these efforts.

Here’s a brief outline of four ways that you can successfully erase the unpaid credit card from your report.

1. Request a Goodwill Adjustment

This is a good option if you’ve got an excellent payment background with your lender and are a client for a long time.

If you request an adjustment to your goodwill You can request the creditor to take off any credit reporting that shows late payments as an act of goodwill as you’ve been a good customer.

To accomplish this, write a goodwill letter to the credit lender or card issuer to explain your situation. Credit card companies are able to exercise a bit of flexibility in reporting missed or late payments. They can erase the late payment from your credit report in the appropriate circumstances.

Did an unexpected expense happen this month that caused you to be late? Are you working on improving your credit score so that you can qualify for an auto or mortgage loan?

Add your personal story to your goodwill letter to ensure that the representative from customer service who reads your letter understands the reason why this is beneficial.

Many people are successful with this strategy because creditors do not want to lose your account due to one dispute.

2. Offer to Sign Up for Automatic Payments

In some cases the creditor might accept to delete or update the late payment from your credit report when you join automatic payments.

This option is ideal for those who have had difficulty making on time payment in the past, but aren’t in a position to be a significant delinquent on your account. You’ll have more success getting this deal if you are financially able to pay your payments.

It is also helpful to overcome any financial difficulties that prevented you from behind from paying your monthly installments before. Similar to the request for a goodwill adjustment this is also beneficial for long-term customers.

3. Dispute the Late Payment

If the two options above aren’t working to get your late payment taken off then it’s time to submit a dispute directly to the credit bureau. The Fair Credit Reporting Act (FCRA) permits you to challenge any incorrect information about the late payment in your credit report. Creditors are required to verify the accuracy of information, and then remove incorrect information from your credit report within 30 days.

To start the process of disputing your credit, you’ll first need to request credit reports. The FCRA gives you the right to receive at minimum one free credit report per year from the three credit bureaus.

Examine your credit report to confirm that the payment date, the amount of the payment and other details are accurate. If something appears to be off Send an request for a credit dispute via certified mail with the request for a return receipt to all three credit bureaus that are reporting the late payment.

You should receive a reply by the credit bureau regarding your complaint within 30 days which is a requirement of law. This is an option when you’re in a position with the time and motivation to conduct a thorough investigation and then execute a successful dispute.

4. Work with a Professional Credit Repair Company

If you’re not confident about contesting a late payment by yourself, you might consider hiring a reliable credit repair service. They have experienced legal professionals on staff and can assist with other negative information that appears on the credit report. Contact them for a no-cost consultation to discuss the charges and services offered.

Additional Tips for Improving Your Credit Scores

While getting late payments off your credit reports is vital however, it’s equally important to look at other strategies to boost your credit score. Here are a few additional suggestions:

• Make sure you pay all your bills on time. A consistent history of payments can show prospective creditor that you’re accountable and creditworthy. You might want to set automatic payments and then at the very least, make the minimum amount of payment by the due date.
• Keep your credit card balances at a low level: Maintain a low credit utilization ratio by ensuring that your balances are below 30 percent of the credit limit. This shows responsible use of credit and will help you maintain a high credit score.
• Check your credit reports Review your credit report regularly to identify any errors or inaccuracies. Make sure to immediately report any discrepancies to the consumer reporting agencies in order to ensure your credit score is accurate and reflects your financial history.
• Mix up your credit: Having a diverse variety of types of credit, including installment loans as well as revolving credit can significantly impact your credit score. The lenders want to know that you are able to manage various kinds of credit in a responsible manner.
• limit hard inquiries Every time you apply for credit the hard inquiry is reported on your credit reports which may temporarily reduce the credit score. Reduce the amount of inquiries by only requesting credit when it is absolutely necessary.

Conclusion

The removal of any late payments from your credit file is an essential step to improve your credit score overall. Utilizing strategies like goodwill adjustments or disputes, or even joining with a reputable credit repair service it is possible to remove any late payments off your credit report.

In addition to paying off late payments, you should also focus on the other areas of credit score, like making timely payments, ensuring that you have low balances on credit accounts as well as diversifying your credit portfolio. If you follow these steps, you’ll be able to build credit scores that can open the door to more lucrative financial opportunities.

Remember, you don’t need to tackle credit problems on your own. Trustworthy credit repair firms can offer expert advice and help in removing negative information from your credit reports and boosting your credit score.