Credit Reports: Can You Remove a Late Payment to Lower Your Credit Score?

A late payment added to your credit report can lower your credit score. It also shows you may have lower financial integrity or creditworthiness. If you have late payments on your credit report, you can work on having them removed.

You may wonder why late payments matter anyway. When you make a payment, you create a payment history. This payment history is the largest substantial element in a FICO credit score, weighing in at 35% of the score. . Even if your credit reports are excellent, one late payment can harm your credit score. The effect of just one late payment relies on various components, such as if your creditors even record late payments for the credit agencies. Generally, a late payment of 30 days or less will not appear on your credit report. The more payments you miss, the more it will harm your credit. Lenders may also send your account to collections.

You can dispute a late payment charge if you know it was an error. In certain cases, it was the mistake of the creditor or credit bureau to provide information that wasn’t correct. It is easy to dispute these online. If it is found that the payment was indeed not late, the late payment will then be removed from your credit report.

What happens if you know that you missed a payment, but it was a mistake? We are all human. You can write a letter to the creditor asking them politely to remove the late payment. This letter is known as a Goodwill letter. Explain your situation and why you were late. Respect and being courteous will get you further here. Add as much information and proof as you can. Just know that the creditor has the right to say no, as it is not guaranteed to have it removed by just writing a letter. Some valid reasons for late payment may be that you moved to a new residence and the bill never made it there, you thought payments were automatic, or you have a financial hardship.

You can also call the creditor and ask them to delete the late payment. You will most likely need to speak to several people before you get anywhere. Be courteous and ask if you can speak to the manager about a late payment. Once you are on the line with them, you can present your case. Remember, they do not need to delete the payment, but if you have a good reason, they are more likely to. Illness is often a reason they will delete the late payment or hospitalization. If you can pay off the loan in full or make an extra payment, they may be willing to remove the late payment as well. If you have never had a late payment before, the lender may decide to remove the payment for you as well.

Having late payments can make life stressful for you. The problem will continue to snowball until you are so far wrapped in it that you can not get out. But do not despair. Credit repair agencies can help you. If you have late payments on your credit report or are interested in raising your credit score, contact Super Credit Repair in Clear water, FL, today. They can help you repair your credit by developing a plan for when you need it the most.