If you only take a single credit maxim to heart, it should be to always pay your bills on time.
A single late payment can drop an excellent credit score (750 and above) by over 100 points. It will stay on your credit report for the next seven years, and it can make it difficult for you to get loans or secure an affordable interest rate.
But what happens if you make a single honest mistake, or you have an emergency that affects your ability to pay? Depending on your relationship with the creditor, you may be able to get the late payment removed from your credit report. It isn't always possible, but it's worth a try, especially if you've always paid on time in the past. Here are a few things you can do to improve your odds of getting the late payment wiped from your credit report.
First steps
If you know you've missed a payment, your first step should be to check your credit reports to see if your creditor reported it. It won't appear unless it's at least 30 days past due, and some accounts may not report it unless it's at least 60 days past due. If you've always paid your bill on time in the past, your creditor may give you the benefit of the doubt and not report the missed payment at all.
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If you notice any late payments on your report for accounts you don't recognize, then you may be the victim of identity theft. Place a fraud alert on your credit report and contact the credit bureau and the financial institution immediately. It may take a couple of weeks to sort out, but the credit bureaus are legally required to fix any errors on your credit report, so you shouldn't have too much trouble getting these late payments removed.
Request a goodwill adjustment
If you've been a loyal customer for many years and this is your first late payment, your creditor may be willing to forgive your mistake and remove the late payment from your credit report. This is called a goodwill adjustment. You can contact the creditor by phone to request one, but you may have better luck by writing out a formal letter.
This letter gives you the opportunity to explain why your payment was late. If you have any proof that backs up your claims -- a copy of a medical bill for an unexpected expense, for example -- it's a good idea to include this as well. The more proof you have that your missed payment was truly a one-time occurrence, the more likely your creditor is to remove it. Send the letter via certified mail so that you'll know when the letter is delivered.
Whether you're requesting a goodwill adjustment by phone or by mail, it's important to be polite. Remember, your creditor doesn't have to remove the late payment from your record if it's accurate, and they're less likely to do so if you come across as angry and combative.
Negotiate
If your creditor refuses to offer you a goodwill adjustment based on your previous payment history alone, you may have to offer the company something in return. If the debt is still outstanding, you can agree to pay the full balance off at once. Or you could try offering to sign up for auto-pay to ensure you don't miss any payments in the future. Make sure you get a copy of any agreement you've made with the lender in writing so you can refer back to it later.
If you've tried all of this and your creditor still won't budge, you may just have to accept that the late payment is going to stay on your report. All you can do from there is make sure all your successive payments are on time and do what you can to improve your credit score, including using less than 30% of your available credit and maintaining a good mix of credit accounts.
Over time, that late payment will affect your score less and less as your more recent payment history takes precedence, and after seven years, it will be as if it never happened.
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FAQs
Unfortunately, an actual late payment is nearly impossible to remove from your credit report even if you were able to convince your card issuer to waive any fees you may have been charged.
How to ask for late payment forgiveness? ›
An effective goodwill letter requires the following:
- Address the creditor or lender respectfully and thank them for their time.
- Clearly explain the situation that led to the late payment with relevant details and/or documentation to support your explanation.
- Own up to the mistake without excuses.
You might consider writing a goodwill letter if you missed one or more payments due to a medical emergency, a divorce, job loss, or a natural disaster. An issue with mail delivery due to a move could be another valid reason to write a goodwill letter.
What is a 609 letter to remove late payments? ›
Section 609 gives consumers the right to request information related to debts listed on their credit reports. Examples of information that you may want to dispute include: Accounts opened due to identity theft. Late payments that were paid on time.
How long does it take to rebuild credit after late payments? ›
How long does it take for your credit score to go up?
| Event | Average credit score recovery time |
|---|
| Missed/defaulted payment | 18 months |
| Late mortgage payment (30 to 90 days) | 9 months |
| Closing credit card account | 3 months |
| Maxed credit card account | 3 months |
3 more rowsJul 27, 2023
But, like other negative records, defaults don't stay on your credit forever. Depending on several factors, you may see an increase in your scores when the default is removed.
What do you say to a creditor to remove late payments? ›
The process is easy: simply write a letter to your creditor explaining why you paid late. Ask them to forgive the late payment and assure them it won't happen again. If they do agree to forgive the late payment, your creditor should adjust your credit report accordingly.
Will credit card companies forgive a late payment? ›
If you're less than 30 days late
You probably were charged a late payment fee and perhaps a higher APR, but your credit won't suffer as long as you pay before the 30-day mark. If you've never or rarely been late, call the creditor and ask if it will forgive the fee.
How do I apologize for late payment of debt? ›
I am sincerely sorry for the delay in payment on {loan type}. I apologize for any inconvenience or frustration this caused you. The delay was caused by {reason}. While I take full responsibility for my mistake, I would like to assure you that this was a one-time error on my part.
What is a good reason for a late payment letter? ›
Top 12 Excuses For Late Payment
- Sorry! We forgot to make the payment. ...
- We are facing issues with your order. ...
- We have already paid the invoice. ...
- The cheque has been sent. ...
- The person responsible for payment has a family emergency. ...
- We are switching to a new bank. ...
- We're experiencing cash flow problems. ...
- Claimed bankruptcy.
Discover isn't obligated to forgive any late fees beyond the initial one. But that doesn't mean you can't try to get a second fee waived, especially if it's been years since your first. You can call Discover customer service at 1 (800) 347-2683 and politely ask a representative about waiving the fee.
How do I write a letter of explanation for late payments? ›
While the content of the letter will change depending on your situation, there are a few important aspects to include:
- Provide all details the best you can, including correct dates and dollar amounts.
- Explain how and when all situations were resolved. ...
- Detail why problems won't happen again.
Late payments can't be removed from a credit report unless they were reported in error. So if a late payment is correctly reported, no one can remove it from a credit report. What is a goodwill letter? A goodwill letter is a note to a creditor asking to remove a negative item from credit reports.
What is a 623 dispute letter? ›
A 623 dispute letter is a written communication submitted to a credit bureau, typically by a consumer, to dispute inaccuracies or discrepancies in their credit report.
How to get credit one to remove late payments from credit report? ›
Dispute Old Information
Late payments are supposed to fall off of your credit reports after seven years, but that doesn't always happen. If the late payment is more than seven years old and still appears in your credit reports, it violates the Fair Credit Reporting Act and you can dispute the outdated information.
How much does one late payment affect credit score? ›
Even if this is the first and only your payment is late by 30 days, it can still impact your score—by about 100 points or more, depending on the scoring model and your current credit score.
Is it true that after 7 years your credit is clear? ›
Highlights: Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
How to get delinquency removed from credit report? ›
If old debt has not fallen off your credit report after seven years, contact the three major credit bureaus (Equifax, Experian and TransUnion) and request that they remove the delinquent debt from your credit report. You may also have a delinquent debt on your credit report that is not actually yours.
