Can You Get A Late Payment Removed From Credit Report?
Late payments are some of the most detrimental factors that can affect an individual’s credit score, and they stay on the report for up to seven years unless you take certain actions to have them expunged from your report.
Your credit report can have a significant impact on your financial well-being. Companies require details on your credit report to check on your creditworthiness to give you credit products such as credit cards, auto loans, and mortgages among others. This particular one is a definite no-no, as a late payment is one of the most detrimental blemishes that one can have on their credit report. This means that missing a payment by even one day during the calendar month can seriously harm your credit score and how lenders see you afterward.
The good news, though, is that you might be able to get late payments deleted from your credit report if any of the following conditions apply. This can be done to repair your credit ratings to have better credit scores for cheaper credit. This guide will shed light on how late payments affect credit, methods used to have them removed, and how to avoid new late marks.
Late payments can hurt credit reports; here is an indication of how:
To completely get to grips with late payment removal then it is best first to know how these delinquencies work in the first place. The two primary categories of credit scoring, namely FICO and VantageScore, both have several mechanisms for discouraging late payments
Payment History Category This portion of the FICO and VantageScore models gives away many points for your payment history. FICO 8 scale, payment history measures 35 percent of total scores. In VantageScore 3. 0, it equally contributes to 40 percent. If you make payments late, this will reduce your chances of getting the maximum possible points for payment history.
Severity and Recency The greater the amount that is still paid later and the more recently it occurred, the deeper the cut to your score. A 30-day late is not as severe as a 90-day in terms of several days one is considered late on payment. Moreover, an unsettled delinquency from six hundred sixty days before does not have the same impact as that of last month. The effect, however, fades over time especially if one manages to make timely payments on the borrowed sum.
Total Delinquencies The total number of late payments is also an important aspect as it shows the overall picture of consumer credit. A consumer who has one 30-day ‘late’ may perform better than a consumer who has three ‘late’ of thirty days. This means that the more frequently a borrower had a record of violating the credit terms, the higher the credit risk.
This means that late payments have high scores associated with them, as you can see above. This is because just one or two of them can severely hinder your chances of getting credit.
Late payments are deducted from your record of credit.
Delinquencies can hurt the credit score of an individual; thus, how can they be deleted? You are left with only two choices – to deny the payments on grounds that they were made too late, or to request the creditors to delete it.
Disputing Late Payments Based on the Fair Credit Reporting Act, you have the right to dispute any information that is inaccurate or unverifiable on your credit report. They have up to 30 days to perform the investigation of the dispute. If they can not prove the delayed payment, they are obliged to delete it from your credit report.
The first step that you can take with regards to a dispute is by reporting to Equifax, Experian, and TransUnion which are the three credit bureaus. Some companies allow you to file disputes via their Websites or provide templates that contain information about the specific payment entries in question that you can use when writing dispute letters.
When reporting the information to credit bureàs ensure that you give specific details such as dates and account numbers to make it easier to address particular items. This is because when preparing the financial report, you should be in a position to explain why the payments that were delayed are inaccurate or unverifiable. For instance, it may be possible to provide evidence that the payment was made before the due date or the creditor was never paid past this period.
Requesting Creditor for Deletion of Goodwill Remedies However, even if they reflect errors and oversights, you can still try to negotiate and convince the creditors to delete the entries from your credit reports. This is referred to as the goodwill disposal or goodwill write-off. In other words, you are requesting the creditor to wipe the slate clean as a way of showing you some mercy.
This is why goodwill deletion requests are always a gamble because late payment removals are a discretionary decision of the creditor. Based on the FCRA, they can lawfully deny the removal requests. However, goodwill adjustments tend to have higher success rates if certain conditions are met, such as:
• You have been repaying this creditor on time until that one time when you had your first and only late payment. • You have a good record of repaying the creditor and you have interacted for several years. • These indicate that there were compelling reasons for the payment delays.
The next step is writing an official removal request letter to the creditor’s regulatory team or executive office detailing your predicament. Remember, it was a one-time or seldom mistake you are ashamed of, assure them of good conduct in the future and politely request that as a client, the negative remarks be deleted.
Some of the details that you should provide include your name, address, and account number as well as the exact entries you want to be erased from the credit report. Ask for their cooperation politely and show appreciation instead of being rude and authoritative. Sending requests by certified mail has the added benefit of confirmation of delivery which may help when suing the company if they fail to reply within a reasonable amount of time.
Preventing New Late Payments Erasing current late payments can help to do away with tarnishing your credit report. However, one must not make new delinquent accounts in the future as much as possible to prevent such a situation. Here are some tips to ensure your payments remain on time each month:
Payment reminder – always ensure that you make a note of the credit account’s payment due dates either on a calendar, planner, or personal electronic device. Notifications through phone, computers, and tablets to be informed about program days or hours before the due date.
Pay on time – This can be done through the credit issuer’s website for a monthly auto-debit payment. The minimum amount due or at least the greater of it will be automatically paid by your bank before the due date in each billing cycle. The only thing to consider is that the accounts need to have sufficient funds for a linked account so that you don’t incur overdraft charges.
Be disciplined by paying more than the minimum – The minimum payment simply ensures that the payment has been made on time. The interest charges may be overwhelming if not controlled; therefore, it is wise to pay more than the recommended minimum whenever possible.
Check Account balances – It is an effective policy to frequently review balances to cross-check available credit limits in the account for purchases as well as transfers. Do not charge up to the limit of the credit card or take cash advances near the statements’ due dates that raise required minimum payments on new purchases.
Automate payments where you can – Set up payments to be processed a few days or a week before the actual due date to cater for any inconveniences that may arise. Paying early creates a breathing space in case of any payment delays.
Review statements carefully – when receiving monthly statements, reconcile them against the copy possessed by the creditor to avoid any disputes that may result in the imposition of penalties and negative credit reporting. Squabble with the management immediately in writing if you find fault with the charges made.
You should know that even a few days’ delay can lead to the appearance of late payments on your credit report.
In conclusion, credit report errors occur, and sometimes, people forget to pay their bills on time. Fortunately, you have tools such as disputes and goodwill letters to dispute and have the adverse late payment marks taken off your credit profile, in the long run. A couple of delayed payments a year or even within months are not going to remain in your credit profile indefinitely. The key is only to avoid the creation of new delinquencies and to correct those errors when it is possible to do so.
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