How to Fix Late Payments on Credit Reports

Late payments on your credit report can not only affect the FICO number, which was developed by the Fair Issac Corporation to determine your risk factor based on credit history, but also limit your options for mortgages, personal loans, credit cards and possibly employment. Payment history accounts for 35 percent of your total score, and while one late payment may not do damage, several late payments will lower the score. When you encounter an error in your credit report, such as a late payment, initiate the appropriate steps to rectify the situation.

Instructions

1

Obtain your credit report from the three major credit bureaus - Experian, TransUnion and Equifax. The Federal Trade Commission requires the credit bureaus to disclose your report at no cost annually. The credit report will list the payment history of current and past debt. You can obtain your free credit report at AnnualCreditReport.com.

2

Search through the credit report to verify all payment history. Payments made on time have a mark of "ok." Late payments will have a mark of 30, 60, 90 or 120 to reflect the lateness of the payment.

3

Contact the creditor who is reporting the late payment, and speak with a supervisor to have the late payment removed. Creditors may remove the late payment mark if payments are normally timely and consistent. If the creditor refuses to remove the mark, contact the credit bureaus.

4

Create a dispute for the payment history that is incorrect by contacting all three credit bureaus. A dispute can be made online through each website or through mailing a dispute to the credit bureaus. Online disputes go to the bureaus immediately with a confirmation email sent to your inbox. Mailed disputes may be more effective if you have proof, such as bank statements or a payment confirmation, to include with the dispute letter.

5

Wait for a response from the credit agencies. The creditor has 30 days to respond to the dispute by verifying the information in question with proof. If the creditor does not respond, the dispute wins and the late payment drops from the credit report. If the creditor responds with proof, the late payment will remain on the report.