How to Remove Late Payments from Your Credit Report

Whether you struggle to make timely payments or miss a due date, late payments drop your credit score. Late payments also stay on your credit report for years. 

But are you stuck with a negative mark if you ran into a temporary hardship or lost track of the due date? Not always. Learn how to remove late payments from your credit report.

Is it possible to remove late payments from a credit report?

If you are willing to invest the time, you may be able to remove late payments from your credit report. You should expect to make phone calls, send letters, or both to your lender. While there is no guarantee, the lender may be willing to remove late payments if you remain persistent. 

How long do late payments stay on your credit report?

Your credit report is a record of your entire payment history. Under the Fair Credit Reporting Act (FCRA), negative items such as late payments, repossessions, and unpaid credit card debts will fall off the report after seven years.

How late credit card payments can affect your score on credit reports

Credit reporting agencies consider payment history the most influential factor when calculating your credit score. Payment history can make up to 35% of your credit score. Delinquent payments can drastically reduce your credit rating. Even if you are only late once, your credit score could drop up to 100 points. 

Tips for removing late payments from credit reports

Whether you have cash-flow problems or forgot to pay your bill, below are some tips for removing late payments from your credit report. 

Check for mistakes

Review your credit report for late payments. If any overdue payments appear in your report, verify them against your records to see when they were paid. If you suspect an error, you can dispute late payments on your credit report with the lender and the credit reporting agency. 

Call your lender

If you suspect a payment was erroneously reported as late, call the lender and ask to have it removed. You may need to escalate your request to a manager or direct your request to a specific department that can approve your request. 

Write a goodwill letter

You could also write your request and send it to the lender. If the payment was reported late in error, include any proof supporting your case.

Even if you sent your payment late, putting your request in writing allows you to explain the situation. Perhaps your overdue payment was nothing more than an oversight. If you consistently pay your bills on time, the lender may accommodate your request to remove the late payment mark from your report.

If you encounter a hardship, such as a medical condition or natural disaster, the lender may be willing to update your payment status.

Even if you get turned down, consider calling or writing again. Late payment removal may be possible with a different representative. 

What to do if you can’t remove a late payment from your credit report

Late payments remain on your credit report for up to seven years. If you have tried removing a late payment but the lender will not budge, consider taking the following steps to help improve your score. 

Work to rebuild your credit score

You can take some definitive steps to help rebuild your credit score.

• Make sure you are timely with your other bill payments.
• When you are behind on payments, make a plan to get current on your delinquent accounts.
• If you struggle to make your payment on time, it is helpful to talk with the lender. When contacted ahead of time, some lenders may be willing to offer help so you can stay current on your account.
• Open a secured credit card. You will be asked to send a deposit for a secured credit card. By making timely payments each month, your payment history improves. Plus, the issuer may bump up your credit limit with a good payment history. 

Seek out financing solutions with low credit requirements

Lenders don’t want to lose money when they extend financing. If your credit score isn’t high enough to give them that assurance, you may still be able to get financing by securing your loan with collateral. If you can make a bigger deposit or use your property, you may be able to secure a loan with a lower credit score. 

Consider a credit-builder loan

Take out an installment loan to help rebuild your credit. Establishing a history of on-time payments can help raise your credit score over time. To avoid falling behind, make it a point to mail in your payments early or have your payments automatically deducted from your bank account each month. 

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Wait to apply for financing until your credit score improves

If you don’t need immediate funding, it may help to stop applying for credit until your score improves. Instead, you can use this time to rebuild your credit.

You can realize a few benefits when you wait to apply for financing until your score improves. A higher score can make it easier to get credit. A healthier credit score can also land you a better interest rate. 

Use credit repair services

If you are having difficulty navigating the process, consider hiring a credit repair service. These companies work on your behalf by asking creditors and credit reporting agencies to remove inaccurate or outdated information that harms your credit. 

Understand your rights

Familiarize yourself with the FCRA. This federal law governs how lenders, credit card companies, and credit bureaus can collect and share your information. It limits who can see your information and when. The act also sets forth the process for disputing and correcting your credit history. 

Now is the time to clean up your credit history

You’re on the right track with these strategies for removing late payments from your credit report.

Late payments are negative marks that can stay on your credit report for up to seven years. Not only can a history of delinquent payments drop your credit score, but you could end up paying a higher interest rate and fees. 

If you are late making your payments because you have accidentally missed a due date or have fallen into difficult times, you should try to remove late payments from your credit report.

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