Can Credit Repair Remove Late Payments? (2024)

Can Credit Repair Remove Late Payments? (1)

In today’s world, having
a negative credit report makes it challenging to carry on with your daily
endeavors. Multiple organizations utilize your credit information as a
prerequisite for engaging in any form of dealings with you or whether you are
eligible to purchase their services.

In order to wade through
the financial waters smoothly, the burden to uphold a positive credit listing
is always weighing heavily on most, if not all of us.

The downside of having a
negative credit includes the inability to request for loans. Most creditors
will verify one’s credit history before they issue out loans. Another
disadvantage is that you may be unable to acquire assets or even rent out
property.

As such, people are
always on the quest to improve their negative credit history. This is where
credit repair comes in.

Credit repair is a
process which enhances your credit report. It is advisable to seek assistance
from an expert when you want to reverse your credit report. You can outsource
such services, but at a fee. Needless to say, other people prefer to do it on
their own.

Credit repair is
considered an ongoing process and consists of various steps. These include:

Evaluation of your credit score.
Handling any financial disputes
which may have caused you to have a negative credit
Coming up with counteractive
strategies which will propel you towards a positive credit score. For example,
paying off any lingering debts, developing sensible spending habits which will
ensure that your credit card balance is never on the negative side as well as
avoiding late payments.

Late payments serve as
one of the major causes for having a negative credit. This payment can come in
form of the amount imposed on you by your credit card provider whenever you
fail to have the minimum amount in your card on a monthly basis.

A late payment can also
be defined as an amount of money paid after the due date or payment period
elapses for any service. It is considered a late payment not only because it is
past due but also due to the fact that it has been paid after a specific grace
period. Normally, service providers may extend payments for some time, for
example 30 days after the actual payment due date.

However, some people may
fail to pay within the extended time. This is what is considered to be a late
payment. In the credit world, failing to pay after the grace period elapses
earns you a spot in the negative credit list. You will be blacklisted. On top
of that, prepare to pay an additional late payment fee.

The good thing is that
all is not lost. The secret to avoiding being blacklisted is to acknowledge
that you are in a crisis. Inform your creditors in advance once you foresee
that such a scenario is likely to happen. Never run away from your creditors.
Why should you run away now, yet they were there for you when you needed that
quick loan?

Communication is
crucial. In addition to that, present a formal letter to your creditors
explaining why you have a late payment. Have supporting documents to verify
your story. Credit companies operate on policies which protect both the company
and you, the client.

As such, they should not
deny you your freedom of expression. Once you do that, your late payments are
unlikely to be included in your credit report.

Late payments give a
negative impression regarding your financial image. A service provider may
perceive you to be irresponsible once you become notorious for making late
payments.

Causes Of A
Late Payment

You may try to justify
your late payments for various reasons. Maybe you had not anticipated that you
would be in a financial crisis which caused you to have late payments in the
first place. It is understandable. So, what are the common causes of late
payments? Read below to find out.

Loss of
Livelihood

No one can foresee what
will happen in future. An unexpected termination of work can create an adverse
financial crisis, especially if you used to service your loans from your
monthly salary. Suddenly, you are unable to cater for those monthly credit payments
or car loan and you end up in a fix with your creditors.

Physical And
Mental Incapacitation Due To Injuries or Ailments.

People find themselves
in unfortunate circ*mstances such as having a terminal illness or permanent
body injuries from an accident. If you had taken loans or had a credit card,
this can result to late payments. At this point, a caregiver can assist by
enlisting you for legal expertise on your financial predicament.

Fraudsters

We live in a world of
variety. Not all that glitters is gold. Not everyone in this world has good
intentions in life. Some people just purpose to make it in life through the
path of least resistance. They devise cunning methods which they use to acquire
assets by stealing from others. Con artists and fraudsters can live off loans
and credit cards which they fail to pay for, resulting in late payments.

Withholding Of
Payments Due To Poor Service.

Sometimes, you may order
for certain services only to be disappointed by the outcome. If you had not
paid upfront, you can choose to withhold the payment as you seek solutions from
the service provider. This can drag for some time, making you susceptible for a
late payment.

Bureaucracy

In some cases, a late
payment can arise due to certain protocols that have to be observed before
payments are made. For instance, some clients may fail to pay on time as a
result of waiting for authorization from a signatory. Funds cannot be released
or a deposit slip cannot be banked without such authorization. Such
bureaucracies create late payments.

Invoice
Disputes

Disagreements may arise
on payments thus causing a delay. The parties involved may revoke the invoiced
amount claiming that it is an overcharge or the terms and conditions of the
service are not at par with the charges. Such disputes have to be resolved and
can lead to late payments.

Sometimes, the fault
lies with the creditors. There are instances where you may be charged with late
payments yet you had paid on time. This can happen when your creditor fails to
update the system which indicates your monthly contributions. In this case, it
is up to them to rectify that mistake and clear your name.

As you can see, not all
late payments are caused by defrauders. Some have genuine causes which require
solutions. Unless you have sinister motives, you should always feel free to
discuss with your creditor why you are late on payments.

Is Credit
Repair Effective For Removing Late Payments From A Credit Report?

This question is
regularly asked by credit defaulters as they seek to clear their names from
negative credit listings. Late payments can be removed from your credit report
as you go through the process of credit repair.

This is achieved by
establishing the real cause of the late payments. We have already looked at the
causes above. At this point, both you and your creditor should then seek to
resolve the matter by looking at all possible solutions for eradicating the
late payments.

There are several ways
you can employ to remove the late payment listings from your credit report. Let
us delve into them.

How To Remove
Late Payments Through Credit Repair

In case of an accurate
late payment, the best way to get rid of it is to inform your creditor in
person. Make contacts with them and explain your situation. This simple step
can earn you the freedom from being blacklisted.

Submit A
Goodwill Letter

As earlier stated, there
is an existing relationship between you and your creditor. Sometimes a simple
request can go a long way. Make a request to the creditor to erase the late
payment from your credit score. It could be that you may have gone through an
unfortunate event which rendered you financially inept.

Disputing With
Your Creditor

There are instances
where the listed late payment is due to an error. It is important to always go
through your credit documents and reports carefully. This can highlight any
errors made. Simple mistakes such as a name being misspelt or a wrong date of payment
can create a late payment. Once you verify the error, you have a right to raise
a dispute with your creditor who will then have to correct and erase you from
the list. What matters is the validity of your dispute. It also pays to have
evidence to support your dispute. Keep any document you use as a client with
your creditor.

Sometimes, things may
take a turn for the worse and you encounter denial from your creditor even
after the goodwill and the dispute. At this point, you can attempt the
following two methods which are guaranteed to push through.

Raise A Dispute
At The Credit Bureau

In the United States,
there are three major bodies responsible for credit reports. These are the
TransUnion, Equifax and Experian. Any responsible citizen ought to be cognizant
of the roles these bureaus play.

Anytime you want to look
at your credit report, credit score and credit status, any of the three bureaus
is mandated to provide you with the information.

In case you have an
erroneous late payment and your creditor is not bulging, you have a right to
raise a dispute with the bureau. The bureau should assist you by evaluating the
validity of your dispute. They will communicate with your creditor so as to
look for effective solutions.

In addition, the bureau
will set a timeline where your creditor should rectify the record. Normally
they are given 30 days. If there is no change, the bureau itself will amend
your credit report.

Inform the
Consumer Financial Protection Bureau

Another major body that
can protect you as a consumer is the Consumer Financial Protection Bureau. This
sovereign body was specifically formed to protect consumers from unfair
treatment from financial or credit institutions across the country.

It is mandated to
supervise these institutions to prevent consumers from being taken advantage
of. Also, it is tasked with creating awareness and educating consumers on how
such institutions operate by providing educative resources.

This gives consumers a
chance to exercise their rights as well as equip them with knowledge that makes
them responsible consumers. When worse comes to worst, this is where you ought
to go to raise a complaint about the late payment listed on your credit report
and seek for it to be erased.

This bureau ensures that
a response is obtained in the shortest time possible, usually within two weeks.
They have a step-by-step process that is used from the time a complaint is
raised. The good thing with this bureau is that they keep you in close contact
throughout the process. Any decision they make is communicated to you promptly.
In case they feel your case can be successfully handled elsewhere, they will
communicate to you in advance before handing the complaint over.

It is possible to remove
your late payments through credit repair. A take away tip from me would be
this. As you progress in life, make it your mission to avoid unnecessary
financial debacles. Strive to live as financially savvy as possible by making
wise choices.