Your credit report is a very important document because of the significant role it plays in your life. It is a reflection of how faithful you have been with your creditors and how wise you are in terms of managing money well. Your credit report goes a long way in determining the kind of loan you can be entitled to be it a car loan or mortgage loan.
It is so bad that a late payment can stay on your credit report for as long as seven years if you do nothing about it! Hence, don’t think it is an issue that will just go away on its own accord, you need to take steps to either prevent it from happening or ensuring that you remove it quickly in case it has already appeared on your credit report.
5 ways to get late payment removed from your credit
In case you are interested in removing late payment from your credit report, (and that should be your target as a serious minded individual who has made the choice to make a headway in life) there are things you can do to correct this which is very feasible. You however need to know that late payment gets into your report by either of these two ways:
- Your creditor had reported that you paid the loan that had been granted to you late and that was actually the case.
- The lander or credit bureau had made a mistake of reporting that you paid the loan that had been granted to you late when in reality that was not the case but a case of error on their own part.
In case you have late payment in your credit report through an error that has been committed by your creditor or the credit bureau, it is quite simple to correct in this case. However, if indeed you have made late payment and it has been accurately reported by your creditor or credit bureau in your credit report, it is more complicated in that case.
If it was a mistake, all you have to do is to file a dispute explaining that there’s an error, and ask that the payment be taken off. You can use a courier (like FedEx or UPS) or send the letter by USPS with a Return Receipt request. Settling the blunder may take a little while, yet you might have the capacity to quicken the procedure utilizing fast rescoring. Paying for a speedier fix regularly just bodes well in case you’re amidst a home buy or another critical exchange. Banks are required to remedy mistakes, and neglecting to do as such is an infringement of the government Fair Credit Reporting Act (FCRA).
In case you have indeed made late payment and that is why it had reflected on your credit report, all hope is not lost, below are five ways you can employ to have late payment taken off your credit report.
1. Request a Goodwill Adjustment
A “goodwill letter” is a method of correcting the issue of late payment that you have on your credit report. It is a versatile method that can be employed for both federal and private loans. The essence of writing a goodwill letter is to bring your credit score to a better rating by soliciting the help of the creditor to remove the late payment that has been attached to your credit report.
Ideally, people who have had issues by experiencing financial hardship as a result of circumstances they have not prepared for have the most success with goodwill letters.
They enable you to assume liability for your activities and to ask (in an exceptionally decent manner) if your understudy credit servicer can understand the circumstance that caused the delay, and eradicate it from your report.
It can likewise be utilized when you think the late payment is a mistake – for instance, in the event that you were in delay during the time of the late payment, and weren’t required to make any installments amid that time, or on the off chance that you know you’ve never been late on an installment.
Very key ingredient in having a successful goodwill letter is to take responsibility and make your request politely. You can also attach your history of faithfulness to loan payment in the past to get the attention of your creditor and convince them to remove the late payment.
2. Negotiate removal by offering to sign up for automatic payments
Your creditor will be very pleased to have access to your bank account and this can be a very strong point you can tender to have your creditor remove the late payment from your credit report. You can negotiate the removal of the late payment on your credit report by signing up for automatic payment.
Never forget that this is not automatic because some creditors may refuse to accept the offer but there is a very high possibility that your creditor will accept this offer. There is a lot to gain from this deal for both you and your creditor. Your creditor will get paid on time for future loans and the fact that you have given your creditor automatic access to your account guarantees that you will always pay your loan back on time.
A very key thing about this negotiation is that you should ensure that you put the agreement in writing before signing up. There is no negative feedback that can occur in the future about this arrangement so you have nothing to be afraid of when considering this offer. It is a safe method of ensuring that your credit score does not drastically reduce by getting your lender to remove late payment from your credit report.
3. Dispute the late payment as inaccurate
Your creditor are not superhuman, they can also make mistakes. Hence, you can challenge the verdict of late payment on your credit score if you feel they have made an error in their judgement. However, you should not just dispute the report just for the sake of it, you should be convinced to a very good extent before challenging the report. You will only be wasting your time if their report is true.
If you have any doubt that they have made a mistake anyway, you have the right to dispute the report and there is no penalty that is attracted for this. Hence, you have nothing to lose to dispute the late payment put on your credit report. How to go about this is not difficult, all you have to do is to send a dispute letter using the Federal trade commission’s sample dispute letter.
The letter has to be sent to the three major credit bureaus which are Equifax, Transunion and Experian. You can send them a mail by using the addresses below:
In the event that you challenge the verdict of late payment, your bank or lender is under obligation to check again to find out if they have not made any mistake in arriving at that conclusion. They are supposed to get back to you within 30 days and remove the late payment from the credit report they sent initially.
4. Have a professional remove the late payment
If you want the late payment resolved faster and in a more effective manner, you can employ the services of a professional and they will help you remove it in no time at all. At this point, you won’t mind the extra buck this will attract because the long term dividend you will enjoy by having late payment removed from your account is worth every penny spent on hiring the professional.
What a credit repair companies do is that they work within the jurisdiction of the law to take care of any verdict that might have appeared on your credit report that is hampering your credit rating. Hence, spending a few bucks to higher them is definitely worthwhile.
5. File a complaint with the CFPB
CFPB have been taking complaints since July, 2011 and you can be sure you are in the right hands when you lodge your complaint to them. Just get to their website on consumerfinance.gov/complaint and you can even chat with a member of the team in case you are online at that point in time. You can also choose lodge a complaint by submitting it over the phone by calling CFPB at (855) 411-CFPB (2372) toll free.
The U.S based call centers will definitely be of help to you and can speak you in over 180 languages! Even customers who are deaf or have issues with hearing can still contact them because provisions has also been made for people in such category.
When lodging a complaint to CFPB, ensure that you are very clear and precise about what you want. Present what had happened and make sure every key detail is included in your complaint. You should also clearly state what you feel should be a fair resolution and make sure you don’t hide from them the things you have done in the past in your bid to try to solve the problem. All of this information is very important if you will be able to get a favorable outcome eventually.
When late payment is reported to credit bureau?
Prevention is always better than cure. It is better you ensure that you do not make late payments because it is just not good for your credit rating. Once, late payments are reported to the credit bureau, it will be displayed on your credit report and this will be seen latest after 30 days in which the due date for payment was not met. Some lenders are more lenient anyway and it will not reflect until after 60 days since the due date of the payment. Most times, your creditor would have informed you beforehand of their policy of reporting to the credit bureaus.
Poor credit report is equivalent to poor credit rating
When you do not possess a good credit report, you will be restricted because it will affect the way your potential creditors will view you. There are factors that affects your credit score rating which is a score that reflects the kind of credit report you get consistently overtime. These factors are:
- Faithfulness to loan payment
- Honest transactions
- Wise spending
- Consistent ownership of account
All this factors are contents that makes up your credit report and a very vital of these factors is the first one which is the degree to which you have been faithful when it comes to the repayment of the loans you have been granted. When you make late payments when loans are granted to you especially if you are the kind that is fond of consistently refunding the loans you are granted late, your credit report will reflect this and the effect this will have on your credit score will not be good at all.
Once you have a low credit score, you will not be able to enjoy some benefits that those who have high credit scores have such as low rate of interested when granted loans. Your dream of getting a car loan or mortgage loan of your choice will also be affected by this. Hence removing late payment from your credit report is something you should not take for granted at all because of the importance it has on the quality of life you will have.
Take a step today
No one wants to be in the situation of having a late payment attached to their credit report because it does not bode well for the finances of the person in the future. Hence, don’t wait till late payment in your credit report drags your credit score very low before you act, you can take advantage of the information you have been given in this article to improve your life today.