8 Steps to Remove Late Payments from a Credit Report

Credit score reveals the creditworthiness of individuals and businesses when they repay credit card bill amounts and loan payments. Lenders and financial institutions will check the credit score of customers before sanctioning loans. They will prepare a credit report and allocate scores depending on their repayments. Those who want to avoid problems in a credit report should make payments on time. Since late payments can affect the credit history of customers, they should remove the same from a credit report. By doing this, they can retain their credit score to experience peace of mind.

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What are the ways to remove late payments?

1. Reviewing a credit report

Anyone who is suspecting a late payment in their credit reports should consider getting a copy from credit reporting agencies. They can contact Experian, TransUnion, and Equifax credit reporting agencies through a toll-free number. Or else, they can use a web platform to get a report by submitting important details. Customers should review the reports collected from three major consumer credit bureaus.

2. Finding the late payments on each credit report

It is wise for customers to go through each credit report with more attention. This will help identify any errors and mistakes associated with the payments. Sometimes, a credit bureau will report the payments lately even though customers pay them on time. Customers should verify their accounts which they use to pay the amounts. Late payments which are more than 7 years old can lead to various problems. Therefore, customers should check them to avoid such mistakes or errors.

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3. Checking the bank statements

Customers should check their bank statements for evidence that they paid the amounts on time which helps avoid disputes. It is easy to check them online and those who don’t have online banking should contact a bank directly. The statement should contain the repayment details along with the date.

4. Reporting fraud or identity theft

There is a possibility that a late payment occurs due to fraud or identity theft. Customers who are identity theft victims should report them to their banks, credit agencies, and the Federal Trade Commission. A credit agency will remove a late payment if it happens due to fraudulent activity.

5. Asking for a goodwill adjustment

Customers can request a lender to remove a late payment with a past history of timely payments. They should consider writing a goodwill letter to a lender to achieve their financial goals significantly.  On the other hand, there is no guarantee that a lender will remove the late payment from a credit history. Hence, it is important to send reminders to lenders with copies of letters.

6. Setting up automatic payments

People should use the latest technologies such as cloud computing apps to set up automatic payments. They provide ways to make bill and loan payments faster that will save time to a large extent. Cloud computing apps or applications can improve the payment processing of customers while making repayments. It provides ways to avoid errors and mistakes.

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7. Making a partial payment

If a lender hasn’t agreed to a goodwill letter, then borrowers should make a partial payment towards the outstanding amount. Customers can make partial payments online on a web platform that caters to their needs. This will help lower unwanted problems on a credit report.

8. Repaying the complete outstanding balance

A credit report is necessary for meeting the financial goals in a business or life. Customers should consider repaying the complete outstanding balance to remove a late payment from a credit report. However, it will take some time for the process and customers should write to the credit agency to remind the details.