How to Raise My Credit Score After Late Payments

Your credit score is calculated using a variety of different criteria, such as how long you have had credit, the types of accounts you have and the amounts you owe on those accounts. The most crucial factor in calculating your credit score, however, is your payment history. Your payment history accounts for 35 percent of your credit score (See References 1). Missing a payment on a credit card or loan can do extensive damage to your credit score. If you have made late payments on any of your debts, there are steps to can take to raise your credit score and minimize the damage.

Instructions

1

Investigate the extent of the damage to your credit score. Pull a copy of your credit report from each of the major credit reporting agencies and review your score. This will inform you of how much progress you need to make to restore your good credit rating.

2

Write a goodwill letter to the lender or creditor to whom you made the late payments. A goodwill letter is merely a written request that the company remove the derogatory payment information from your credit report. A goodwill letter is most likely to be successful if this is the first time you have ever missed payments.

3

Pay the balances of your credit cards down as much as possible. Your debt-to-limit ratio accounts for 30 percent of your credit score. The lower your outstanding balance is in comparison to your credit limit, the higher you can expect your credit score to slowly climb.

4

Review your credit reports for any negative information that is inaccurate. The Fair Credit Reporting Act allows you to request that the credit bureaus investigate suspicious information contained within your credit report. If the information cannot be validated, it will be removed and your credit score will increase.

5

Check the dates of any derogatory entries in your credit file. You can request that the credit bureaus remove any entries that are over seven years old. The removal of obsolete negatives will boost your credit score.

6

Pay all of your credit card and loan payments on time every month. An additional late payment will undo any progress you have managed to make with your credit score. After two years, the original late payment information will drop off your report, leaving only your good payment history.