If you have late payment records on your credit report, then your credit score might be on the low side. This is a problem, especially if you ever want to rent an apartment, buy a car, put a down payment on a house, or apply for a loan.
Your credit score is your financial reputation. When you have late payments on your credit report, then it could potentially ruin your financial reputation, making you an undesirable candidate for any type of credit card or loan.
Making your payments on time is the most efficient way to build your credit and maintain good credit. If you’ve had a hard time in the past with making your payments on time, then you may have it showcased on your credit history.
In this article, we’re going to explain exactly how long late payments stay on your credit report, as well as how to remove them from your credit report so that you can rebuild your credit.
How Long Does It Take To Remove Late Payments From Your Credit Report?
A late payment record can appear on your credit report when you are unable to pay a bill by its designated due date. A creditor can report your late payment to the credit bureaus (Equifax, Experian, and TransUnion) after you are approximately 30 days late on the payment.
A late payment can remain on your credit report for up to 7 years.
If you want a late payment removed from your credit report, then you’ll need to go through a series of steps. It’s always recommended to hire a professional credit repair agency to handle your credit repair endeavors, especially since it takes a lot of time, energy, and resources to get the job done correctly.
However, if you’re more of a DIY-style kind of person, then that’s acceptable as well. Just make sure that you take the necessary time and effort into your credit repair efforts so that you can effectively improve your credit score and rebuild your credit.
The length of time that it takes to remove a late payment from your credit report can vary. Depending on the severity of your financial situation, how many late payments are present, and how much you owe will determine how long it will take to remove a late payment from your credit report.
Typically, it can take anywhere from 3-6 months to have a negative item removed from your credit report. After you’ve filed a dispute with the credit bureaus, they must take a maximum of 30 days to reply with an approval or denial. If they neglect to reply within that amount of time, then your late payment record automatically gets removed from your credit report.
How Does a Late Payment Impact Your Credit?
Late payments have a negative impact on your credit score because it shows that you may be irresponsible with your finances. If you’ve missed any payments or made a late payment, then creditors see that as “you can’t be trusted with a loan.” This can affect your ability to apply for an apartment rental, buy a new car, purchase a house, or take out any type of credit loan.
If you have a credit card loan that you still haven’t paid off, you must ensure that you’re making all of your monthly credit card payments on-time so that you can pay off the full balance. Once you’ve paid off the balance of your credit cards, then you’ll find that your credit score will steadily increase.
Speak to your credit card issuer to agree on a fixed monthly payment and interest rate so that you can make affordable monthly payments on time. This also goes for all of your bills, including your rent, car insurance, car payment, mortgage, utility bills, etc. Pay your bills on time to avoid any additional negative information being added to your credit report.
How to Remove Late Payments From Your Credit Report
Removing a late payment from your credit report takes tenacity, time, and headstrong persistence. You must stay on top of the credit bureaus during this time so that your case doesn’t fall through the cracks.
This process takes a lot of energy, which can become stressful and overwhelming. This, amongst a plethora of other reasons, is why you should consider hiring a professional credit repair expert to handle your credit repair.
First things first, removing a late payment from your credit report begins with a full credit report inspection. You must look for other possible errors or inaccuracies in your credit report to include in your credit report dispute letter.
Once you’ve identified any other mistakes present, you must write a letter to all 3 credit bureaus – Experian, Equifax, and TransUnion. You must include your name, address, contact info, a copy of your credit report, and a brief description of what errors are present that need to be corrected.
If you believe that your late payment is an error or you have a valid explanation for why you missed the payments, you must include information as to why. Be clear, concise, and descriptive in your explanation. You could write a letter and send by mail, online, or even conduct an interview over the phone.
From there, the credit bureaus have 30 days to comply with your case. They have the option of approving the dispute or denying it if they can verify that the information is correct. If they deny your request, then you will not be able to have the late payment removed (before the 7-year mark).
The only thing that you can do is continue to make your payments on-time and avoid missing any future payments. Also, you may want to refrain from opening up any new accounts to avoid adding any new collection accounts to your file. The last thing you want to do is accumulate more debt.
Hire An Expert
When you hire an expert, you avoid making any additional mistakes. One of the first rules of thumb that any credit repair expert will tell you is to NEVER provide the creditors with your bank account information.
Also, making your case to have a late payment, or any other piece of negative information, removed from your credit report is not as easy as it sounds. After 30 days of missed payments, and your late payment was reported to the credit bureau, we can get to work.
Let us help you improve your credit score so that you can repair your financial reputation and regain your financial freedom! Give My Credit Advice a call for your free credit consultation and let us get started!