How To Remove Late Payments Off Credit Report

Removing a late payment from your credit report can be challenging, but if the late payment is inaccurately reported, you have the right to dispute it under the Fair Credit Reporting Act (FCRA). Here’s how you can proceed:

📝 Step 1: Review Your Credit Reports

Obtain your credit reports from all three major credit bureaus—Equifax, Experian, and TransUnion—through AnnualCreditReport.com. Carefully review each report to identify any late payments that may have been reported inaccurately.

🛡️ Step 2: Understand Your Rights Under 15 U.S.C. § 1666b

According to 15 U.S. Code § 1666b, a creditor may not treat a payment on a credit card account as late unless they have adopted reasonable procedures to ensure that each periodic statement is mailed or delivered to the consumer at least 21 days before the payment due date. If a creditor fails to meet this requirement, any late payment reported may be considered inaccurate. 

✉️ Step 3: Draft a Dispute Letter

If you identify an inaccurately reported late payment, draft a dispute letter to the credit bureau(s) reporting the error. Your letter should include:

• Your full name and address

• A clear identification of the disputed item (e.g., account number, date of the late payment)

• An explanation of why the information is incorrect, referencing 15 U.S.C. § 1666b if applicable

• A request for the item to be corrected or removed

• Copies of any supporting documentation (e.g., payment records, correspondence with the creditor)

You can find sample dispute letters and additional guidance from the Consumer Financial Protection Bureau (CFPB). 

📬 Step 4: Send the Dispute Letter

Mail your dispute letter to the appropriate credit bureau(s). It’s advisable to send the letter via certified mail with a return receipt requested, so you have proof of delivery. Keep copies of all correspondence for your records.

⏳ Step 5: Wait for the Investigation

Upon receiving your dispute, the credit bureau is required to investigate the claim, typically within 30 days. They will forward all relevant information to the creditor, who must then investigate and report back. If the creditor finds that the late payment was reported in error, they must notify all three credit bureaus to correct the information. 

✅ Step 6: Review the Results

After the investigation, the credit bureau will provide you with the results in writing and a free copy of your credit report if the dispute results in a change. Review the updated report to ensure that the inaccurate late payment has been corrected or removed.

📌 Final Tips

• If the late payment is accurate but was due to extenuating circumstances, consider writing a goodwill letter to the creditor explaining the situation and requesting a removal of the late payment from your credit report.

• Regularly monitor your credit reports to ensure all information is accurate and up-to-date.

By understanding your rights and following these steps, you can address inaccuracies on your credit report and work towards improving your credit health.