How to Get a Loan With a Late Payment on Your Credit History

A single late payment on your credit report should not hurt your chances to be approved for a loan -- if there are no other problems with your credit. The University of Minnesota reports that most creditors regard credit information as "a snapshot in time." That means the loan officer approving your application will be more concerned about your current payment history than a late payment from some time ago. According to the university, scores of 720 or higher represent excellent credit and scores below 650 are regarded as poor.

Instructions

1

Review your credit score and report. Order the credit report from annualcreditreport.com, a website established by the major credit bureaus (see Resources). It's the only site officially authorized by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. Follow included instructions on your credit report to order your credit score separately for a fee.

2

Review your score to compare it against the standards for good credit. Stop fretting about the late payment if your score is 720 or higher; chances are with a score that high that the late payment won't have any impact.

3

Contact the creditor posting the late payment if your score is below 720 and you feel the late payment may be the reason. The MSN Money website reports that creditors will sometimes remove a single late payment from a credit report for loyal customers. MSN Money reports the process is called "goodwill." Ask for goodwill by calling the creditor and asking that the late payment be removed. Explain that the late payment was an oversight -- if that was the case -- and that you would like the negative entry removed from your credit report as a courtesy.

4

Order a second credit report and score in about 60 days if the creditor agreed to remove the late payment. That will allow enough time for your credit report and score to be updated with the new information. You're entitled to three free reports a year from AnnualCreditReport.com, but you must pay for your credit score separately each time.

5

Apply for your loan even if the creditor declined to remove the late payment. Apply for the loan in writing and attach a note explaining the late payment.