Credit Companies

How Can We Eliminate Late Payments from Credit Reports?

Quick Answer:

Late payments can be eliminated from your credit report if they have been addressed defectively or if you can deal with your creditor to remove them.

Any individual can be the victim of late payments. Fortunately, there are various methods to remove such derogatory marks from your credit report.

Negotiate with Your Lender to Remove It with a Goodwill Adjustment Letter

This is a direct method to get rid of a late payment from your credit report. At certain times, creditors are in vote of making a goodwill adjustment if your credit history is good or you have good connections with credit facilities or the creditors.

The procedure is simple; you just have to write a letter to your creditor providing an explanation of your late payment. Request them to forgive this mark and ensure that you will do it again. If the creditor agrees to your terms, he will modify your credit report to subtract the late payment.

However, this method does not always work. The creditors will not always forgive your excuse, but it’s worth a shot. If your creditor agrees to your deal, you will need to demand written evidence of their agreement in other to hold them accountable in the future.

Ask For a Pay-for-Delete Letter

If you do not have good connections with the creditor, or if your debt is already sent to a collection agency, then we’d advise you to favor a pay-for-delete letter.

This letter is a technique you may use to proffer a complete payment of the debt to receive the elimination of the derogatory mark. You may also subscribe to automatic payments to make sure that you steer clear of late payments in the future.

The letter should completely outline your offer (full payment, auto pay), your request (ceased reporting on the delayed payment, debt marked as paid) and the date wherein you would like to receive a response.

Methods to Eliminate Defective Late Payments

It is not unusual to notice a few inaccuracies on your credit report. If you find an error on your reported, especially a late payment, you are given the righto demand the credit bureaus to investigate and eliminate it under the Fair Credit Reporting Act (FCRA).  There are certain methods that can work to remove the inaccuracy from your report.

File a Credit Dispute

If you notice an inaccuracy on your report, you can address a dispute to the credit bureau that developed the report. You can also dispute the error with the creditor. This can be done by directly communicating with them and telling them that the reported item is wrong and that it must be eliminated.

You can initiate this process by mailing the dispute letter to every bureau that reported the mistake. The dispute should clearly highlight the derogatory mark you are looking to change, provide any necessary documents regarding the information, and ask them to eliminate it.

The credit bureau has 30-45 days to investigate and rectify the mistake after they have received your dispute letter. You will be informed of all happenings and the result of investigation.

If, however, the dispute is falsified and the mark is indeed accurate, the late payment will stay on your credit report. On the other hand, if the dispute is accurate, it will be promptly eliminated from your report.

When Are Late Payments Addressed?

Creditors report the late payments after you have delayed the payment for 30 days or more. The more you delay, the more it will have a grave impact on your credit score. In addition to making sure that you do not delay any payments, also ensure that if you do have a late payment on your report, that it does not stay there for a long time in order to have the least effect on your credit score.

How Do Late Payments Affect Your Credit Score?

A single late payment can decrease a score of 780 by 90-110 points, and a 680 credit score by 60-80 points according to Equifax. Missing several payments in a month has a larger effect on your credit score. Which is why it is best to steer clear of any late payments to prevent a decrease in your credit score.

How Long Do Late Payments Remain On the Credit Report?

Like most derogatory marks, late payments remain on your credit report for almost seven years, and can adversely affect the credit score until they are removed from your history. It means that you will have to struggle for seven years to be approved for credit applications or get decreased interest rates. Although, there are certain steps you can take to remove these negative marks.

Can I Remove a Late Payment by Paying My Debt Off?

If you are able to, you can make complete payments to the debt if the creditors or the collection companies will not be open to negotiating with you. However, just paying the debt off will not remove it from your credit report, meaning it can still stay on your report for up to seven years.

Despite that, it is more beneficial to have a debt labeled as “paid”, rather than a “charge-off” label. Have a charge off items will indicate to potential creditors that check your credit history that you are a financial risk and are not able to pay your debts. This can put you on the backseat for certain credit applications, which would further decrease your credit score.

Hire Experts to Eliminate Late Payments

To simplify the procedure, you can employ the aid of credit repair organizations to help dispute errors on your credit report. Agencies like Blackwater Credit Repair have the professionals that help clean up your report and make any disputing matters simple and efficient. These firms review your case and take the best course of action for a clear credit report and an adequate credit scores.