December 5, 2023
Should you find a late payment on your credit report that was reported in error, you can file a dispute to potentially get the inaccurate information removed.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice.See Lexington Law’s editorial disclosure for more information.
A late payment is when you make a payment after the due date, which may result in a negative mark on your credit report. For credit card payments, auto loan payments, and mortgages, you may have a grace period after the due date, but this depends on the financial institution’s terms.
Late payments can happen to anyone. Read below to learn how to remove a late payment from your credit report and avoid derogatory marks that can lower your score.
Table of contents:
- Ways to remove accurate late payments
- Ways to remove inaccurate late payments
- When are late payments reported?
- How late payments affect your credit score
- How long late payments stay on your credit report
Ways to remove accurate late payments
If your late payment item is accurate, consider sending a goodwill letter requesting that the late payment be removed from your credit report.
Ask the lender to remove it with a goodwill letter
This is a straightforward way to potentially get a late payment removed from your credit report. In some cases, creditors are willing to make a goodwill adjustment if your payment history has been good or if you have a good relationship with them.
The process is easy: simply write a letter to your creditor explaining why you paid late. Ask them to forgive the late payment and assure them it won’t happen again. If they do agree to forgive the late payment, your creditor should adjust your credit report accordingly.
Creditors don’t always forgive late payments, but it doesn’t hurt to try. If your creditors receive and agree to the terms of your goodwill letter, make sure you receive the agreement in writing to keep your creditors accountable.
Request a pay-for-delete letter
Similar to a goodwill adjustment, you can sometimes negotiate with your creditors and then request a pay-for-delete letter. This is when the creditor puts in writing that they’re going to remove the derogatory mark from your credit report, which will likely boost your credit. To increase your chances of sending a successful pay-for-delete letter, think of what you can offer the creditor or why they should assist you. For example, you can offer to pay your balance off in full in exchange for the removal of the negative mark.
Ways to remove inaccurate late payments
It’s not uncommon to find inaccurate information on your credit report. If you do find a mistakenly reported late payment, you’re entitled by the Fair Credit Reporting Act (FCRA) to request the credit bureaus to substantiate it, and if found to be an error, remove it. The Federal Trade Commission (FTC) allows consumers to access the FCRA to learn more about their rights when it comes to their credit report. There are a few different ways to try to get inaccurate information removed.
Start by reviewing your credit reports
A great strategy that can help you is reviewing your credit reports on a regular basis. Whether it’s monthly or biweekly, staying up to date with your credit report can help you catch derogatory information sooner rather than later, which makes it easier to address. This will also help you catch any errors that might appear on your credit report, like a misreported late payment.
File a credit dispute
If you find any errors on your credit report, you can file a dispute with the credit bureau that generated the report. You can also dispute the mistake with the creditor.
You can start this process by sending a dispute letter to each credit bureau that reported the mistake. The dispute letter should clearly state the negative information you’re disputing, include any documentation of the inaccurate information and request that the item be corrected or removed.
After receiving your dispute letter, the creditor or credit bureau has 30 to 45 days after receiving your dispute to investigate the claim. You should be notified of the results after the creditor or credit bureau has finished their investigation.
If the creditor or credit bureau has proof that the information they are reporting is correct, it will stay on your credit report. However, if they agree that the information is incorrect, they should remove it from your credit report.
Each of the credit bureaus allows you to file a dispute via their website as well:
When are late payments reported?
Creditors usually report late payments to the credit bureaus once you’ve been 30 days late or more on an account. Typically, the later you are on your payment, the more it will negatively impact your credit score.
How late payments affect your credit score
While the exact point drop will vary from person to person, late payments can significantly hurt a borrower's credit. Those with better credit are more likely to be affected more significantly than those with worse credit, and missing multiple payments in one month will typically have an even greater impact on someone’s credit.
How long do late payments stay on your credit report?
When do late payments fall of your credit report? Late payments can stay on your credit report for up to seven years and can negatively impact your credit score as long as they remain on your credit report. That’s potentially seven years of struggling to get new credit or facing higher interest rates. However, remember that there are things that you may be able to do to get late payments removed from your credit report.
Will paying off my debt remove a late payment from my credit report?
Paying off your debt is an option to consider if your lender or collection agency won’t negotiate with you otherwise. However, simply paying off the debt won’t remove it from your credit report. It can legally remain on your credit report for up to seven years.
That being said, it’s better to have a debt reported as “paid” instead of as a “charge-off.” Having a charge-off mark in your credit history is a signal that you are a high risk to lenders and can make it difficult for you to apply for new credit accounts in the future.
Get help addressing late payments
You can work with a credit repair organization that will help you address inaccuracies on your credit reports to expedite the process. The credit repair consultants at Lexington Law Firm have the knowledge and, most importantly, the time available to help you through the credit repair process from beginning to end.
Reviewed by Paola Bergauer, an Associate Attorney at Lexington Law Firm. Written by Lexington Law.
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona. In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
