I messed up last month and accidentally forgot to pay one of my credit cards. It was reported on my credit and I saw a 30 point drop! Late payments can be a big deal, and they weigh significantly in your overall credit score calculation.
In my experience, as long as you don’t have several late payments on the same account, it’s really not that difficult to get them removed. Here are three methods you can use to get them removed.
1. Request a Goodwill Adjustment from the original creditor to remove the late payment
The idea is simple and it works incredible well. Many times creditors are happy to grant “goodwill adjustments” if your previous payment history is relatively good and you have established a good relationship with the creditor. This is probably the easiest and surest way to get a late payment removed from your credit report. The process involves writing the creditor a letter explaining your situation (why you were late) and asking that they “forgive” the late payment and adjust your credit report accordingly. The easiest way to write a goodwill letter is to use the Letter Generator at Creditable.
2. Negotiate removal by offering to sign up for automatic payments.
I have never actually tried this method myself, but from what I understand creditors frequently offer to remove late payment entries if you, in exchange, agree to sign up for automatic payments. I really like this idea because it works out well for both parties: the creditor can ensure future payments will be made on time, and you don’t have to ever worry about missing another payment. I would love to hear from those of you who have succeeded with this method!
3. Dispute the late payment as inaccurate
While I certainly do not advocate fraud (that is, claiming an entry is inaccurate when you know it’s not), if you find ANY inaccuracies on the late payment entry (dates, amounts, etc), you can dispute the late payment as inaccurate.
Sometimes creditors have a difficult time verifying the exact details of your account history. Therefore, if you dispute the late payment and they are unable (or simply don’t bother) to verify it, the negative entry will be removed.
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Hi. I am a long time reader. I wanted to say that I like your blog and the layout.
Peter Quinn
Thank you
My only concern with #3 is that if you know you were late on a payment, but you are disputing that it was not, that is considered fraud. In most cases, they do not pursue this because they can’t prove it, but they very often dismiss those cases as frivolous, especially if you dispute the same entry multiple times.
I found item #3 to be particularly useful. I’m not so sure on the Goodwill adjustments, especially now, but it’s certainly worth a shot. Good post.
This article is very useful. For some reason, I’ve always taken the approach, that once something hits your credit report, it is written in stone. I’m doing some credit score remodeling this January, as I really attack my record and score for the long run, and I think that these are some really good ways to get started in boosting your score. Thanks for the advice.
Caleb
I would say Number 3 Works more often than most. In 2004 I was 18 with a credit card. I got into some trouble and stopped paying it. I recently went and disputed them and they didnt have enough information in my current file to verify that I had opened it.
Good post! Probably it can work out in removing late payments from my credit report. Thanks for the information.
i recently disputed a capitol one report and asked them to prove it was my account the began adding more money onto the balance owed within days But have still not sent proof if it is my account like a contract or anything
What can i do in this case does the bureau have to remove it or what
Hopefully you sent your dispute via registered mail with return receipt. If you disputed with the original creditor yourself via the mailing method above they by fcra law have thirty days to comply to send verification you asked for. If its been past thirty days send a letter to credit bureaus with copy of what you sent the O.C. and dispute through them. If O.C. verifys through that and its still not corrected. Send OC a follow up letter asking for verification again. If they do not send it send another letter threatening to sue for damages. That should take care of it.
Negotiated removal by signing up for auto-pay. Sounded like they just didn’t want to have to deal with me. It was my third call to have the late payment removed.
What do you do if your account are paid off and they still wont take late paymetns off after a goodwill letter, and disputing as inaccurate? These occured on two accounts in 2007 and I still cant get them removed. Any help would be appreciated.
To M.S.
Where you able to resolve your issue, and if so how? I have the same issue I have a late payment back in 2004 and the account was closed some time ago.
I just spoke with a credit card service agent about this goodwill adjustment & told me they can’t do it. He said that it is illegal & considered fraud to go back & remove a late payment report to the credit agency. Is that true or is he just avoiding doing it? Or does it need to be done by letter?
Thanks.
@Smarie – No, that’s not true.. the creditor is lying to you.
So I have been talking with ACS and they have never heard of a Goodwill adjustment and say its illegal via the Fair Credit Reporting Act.
I told him it wasn’t, and he said to send him the paragraph in which it shows that he could adjust my late payment.
I see a lot of “it’s not illegal” posts, but no one has backed this up with any evidence. Does anyone know WHERE in the Fair Credit Reporting Act it says they could do a goodwill adjustment?
Thanks!
Strategy #1 worked great for me. I just called them and told them I was trying to clean up my credit, asked them to remove it, and they did. It was easy. I wish I knew about this earlier.
as long as you don’t have several late payments on the same account, it’s really not that difficult to get them removed
I have a late payment with HSBC Bank (via Helzberg Diamonds), and Ive had two CS employees tell me that it’s illegal to do goodwill adjustments, a manager tell me that it’s not company policy, and another CS give me a number to fax a letter to, but the number was not a fax line….
Is it a fraud when Credit Bureaus report inaccurate information on your report? Is it fraud when a creditor reports wrong information to Credit Bureaus regarding your account?
This inference that “knowing a late payment was made” and disputing such late payment is fraud is preposterous.
A late payment can be late for various reasons. Sometimes automatic payments are not made because these big banks had problems with processing your payment – you aren’t saying a person is committing fraud in disputing a late payment on your account? You know it was late – why would you dispute it? It is obvious why.
It is flabbergasting that businesses imposes fear on people with criminal liability all while they are free to make errors, or engage in schemes to impose fees on people without the same fear. All on the consumer right?
Bogus.
Would #1 work if the late payment has been over a year ago?
Tell them to show you where in the Fair Credit Reporting Act it states that they CANNOT remove it and that it is illegal? The Fair Credit Reporting Act does not demand that all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company does have legal discretion and permission to remove any account it chooses from the credit report.
hey, I know that they can remove these items you just need to do it in writing disputing the O.C. name address amount of bill and phone number dates and WHO the person that investigated this delinquent account.
I sold my house a year ago, and have one late payment that I didn’t make to my mortgage company due to medical reason as well as moving into a rental. I have been disputing with both the credit bureaus and GMAC. I was never late in the 5 years I had a loan with this lender. I now have a bank that is willing to give me a new loan if I can remove this late payment. My credit is in the mid 700 range. Any suggestions or sample letter. Thanks
I sold my house a year ago, and have one late payment that I didn’t make to my mortgage company due to medical reason as well as moving into a rental. I have been disputing with both the credit bureaus and GMAC. I was never late in the 5 years I had a loan with this lender. I now have a bank that is willing to give me a new loan if I can remove this late payment. My credit is in the mid 700 range. Any suggestions or sample letter. Thanks
I am on the phone with HSBC right now and they are telling me they cannot as well. I already wrote a letter and received the response that they could not do it. I’ve asked for manager after manager- but they still say they cant. what else can i do? i wont rest til this is over. Its my only card I was a cosigner on it and it was reported 30 days late- i found out and paid off the entire balance and closed the account so the card holder couldnt miss anymore.
I stumbled across this site while attempting to clean up my own credit report. I have found that in the last few months that the easiest way to dispute items is to start a dispute with the BBB. I have tried writing dispute letters and letters of Validation to past creditors. None of them care UNTIL you involve the Better Business Bureau.
Amy does it work if you get the bbb involed? How so? whats the process?
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