How to Remove a Late Pay History

It's easy to end up with a late payment on your credit report. Everything from major life events like job loss or divorce to minor incidents like popping a check in the mail a day later than planned could earn you a late payment ding. The hard part is what comes next. A single late payment could knock 30 points off your credit score. An account that is more than 90 days past due can be as damaging as bankruptcy. Even years later, a late payment could impact your chances of getting a loan, mortgage or credit card. If you have a late pay holding down your credit score, you do have options. There are ways you may be able to have that credit blemish erased.

Instructions

1

Verify that the information is correct. Did you really pay late? Can you prove that you paid on time? If the late payment on your credit report is an error, contact Experian, TransUnion and Equifax--the three credit bureaus--and file a dispute. They will investigate your claim, and if they find the report is an error, they will remove it. You can file a dispute on the agencies' respective websites (see Resources). Each bureau has its own method for handling disputes, so follow the procedure given to you when you file your complaint.

2

Request a goodwill adjustment. Your creditor may be willing to remove the negative mark from your credit report by offering you a goodwill adjustment. This adjustment is simply a gesture on the creditor's part to keep you a satisfied customer. Generally, to qualify, you need to be a customer in good standing whose late payment was merely a blip in an otherwise solid payment history. Contact your creditor by phone to request the adjustment or write a letter. Be prepared to take responsibility for your late payment, give an explanation for why you missed the payment and point to your otherwise good payment history. Credit Info Center has a sample goodwill adjustment request letter you can use as a guide (see Resources).

3

Negotiate with your creditor. If your payment history with the creditor is not up to snuff enough to request a goodwill adjustment, attempt to come to an agreement whereby your creditor removes your late payment history in exchange for you getting your payments on track by setting up automated payments. You may also be able to offer a lump sum payment that brings your account balance down in exchange for removing the negative credit mark.