Sometimes having a late payment on an updated credit report might seriously affect your credit rating. Paying your bills and debts a bit late indicates that your credit score is inadequate as you cannot pay your payments on time and this makes you a dangerous client for lenders. The good news is that this is one of the circumstances in which one may ask to have the specific payment taken off from his or her credit record. That captures the essence of the matter.
How It Works: Late Payments and Your Credit
Should you postpone paying a particular bill, the lender will submit this information to the three main credit bureaus—Equifax, Experian, and TransUnion. Your credit record will then display the late payment, and depending on the credit bureaus, it may show up seven years from the day the account becomes overdue. This black mark lowers your credit score in a few main respects: This black mark lowers your credit score in three main important ways:
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Payment History – A part of your FICO credit score, it captures whether you pay debts or not in a given period. Late payment is another aspect that is a determinant of credit scores and one 30-day late payment can reduce your score by as much as 110 points.
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Credit Utilization – Another factor in FICO is the credit utilization ratio, which is the amount of credit that one uses about the amount of credit available to him for use. Sometimes, skipped payments can also result in a decrease in your total credit limit.
Public Records and Collections – The final stage of credit is to include the account in public records if the account is extremely overdue. It normally appears in the public records part of the report and can significantly affect your score.
As evident from the examples above, even one missed payment can have severe negative effects on credit score which remains for many years. This is why it is crucial to have it wiped out of your credit history for you to be eligible for new credit with low interest rates.
What about the late payments, or, in other words, is it possible to have them deleted from the credit report?
There are a few ways you may be able to delete a late payment from your credit report: There are a few ways you may be able to delete a late payment from your credit report:
1. Negotiate with Your Lender
Even if you have paid all your past-due bills on time and have a good payment history with your lender, you can simply pick up the phone and ask the lender for a goodwill adjustment. This entails the agreement by the lender to delete the negative mark from your credit bureau file for being helpful to you. This is most effective if: This is most effective if:
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It was your first time to pay them a visit with a one-month overdue bill.
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This is to inform you that you are still a loyal customer with no any detriment to your account.
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There were certain circumstances which could have forced the families, for instance, sickness or unemployment.
If the approval is granted, kindly ask for a written acknowledgment for documentation purposes.
2. Dispute the Late Payment
You also have some rights under the Fair Credit Reporting Act: You can dispute the information on your credit report if it is inaccurate or unsubstantiated. To dispute a late payment with the credit bureaus, either: To dispute a late payment with the credit bureaus, either:
It is also possible to ask about the investigation online or in writing.
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Dial the dispute telephone numbers of the three credit bureaus; Equifax, Experian, and TransUnion.
During the dispute, the credit bureau shall contact your lender demanding further authentication of the reported delayed payment. If a lender is in a position to validate the delinquency, then it will remain in the credit report. But if they do not respond or are unable to produce the necessary documents, the credit bureau is legally required to delete the notation.
3. Wait It Out
If you cannot persuade the credit reporting agency to remove the entry early, it will disappear from your credit history seven years after the date of the late payment according to the provisions of the Fair Credit Reporting Act. Look for a reminder that such a date is appropriate for checking the credit report. After being removed, your credit score should improve because that stain will not be added to your credit report again.
Strategies to Rebuild Credit
Even if you cannot erase a late payment from your credit report, you can take other steps to rebuild a strong credit profile over time: Even if you cannot erase a late payment from your credit report, you can take other steps to rebuild a strong credit profile over time:
•One should ensure that at least the minimum amount stated in the payment schedule should be paid for all debts from that time onwards. • Slightly reduce credit utilization by requesting the creditor to raise the credit limit. • This is because if they make too many applications, they may be rejected by creditors due to many hard inquiries being made. • Using secured cards is good to improve payment history • Patience is required and wait for the negative marks to disappear from your credit report.
After practicing smart credit management, you can see a big transformation in your credit score in a few years and then be in a position to get the best loan deals. Just be patient stay alert, and strive strongly to establish the kind of payment record that will assure lenders that they can depend on you.
The Bottom Line
This holds especially true even if it’s a one-off event since the negative effect of a late payment can linger a long time on your credit report. In some cases, you may be able to dodge, extricate yourself from, or heal from those mistakes with some work. According to the Fair Credit Reporting Act, you must be informed of the information being reported about you and you have the right to dispute any inaccurate or unverifiable information in your credit report including that eyesore of a late payment.
As much as possible, be first to act and employ credit repair tactics including goodwill appeal or dispute immediately after the delinquency to maximize the likelihood of its removal. However, if the late payment stays, keeping up with all your credit responsibilities will also enable you to work towards an excellent credit history in the long run.
Call now for expert credit repair services: (888) 803-7889
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