How to Remove Credit Card Late Payment Records from Credit Report

Financial institutions and lenders provide loans after assessing your credit report. A credit report is a summary of your credit history for the last 36 months and demonstrates your ability to repay your loans on time. Maintaining an accurate credit report and credit score will facilitate quick loan approvals.

A late payment record can have a significant negative impact on your credit report. Late payments bring your credit scores down which can result in denied credit from almost all lenders. While some lenders might sanction loans even if your credit report has late payments, the interest you will have to pay will be substantially high.

Some studies show payments that are overdue for 30 days or more can reduce your credit score by up to 100 points. Therefore, it is crucial to pay your easy monthly instalments on time.

How Should You Remove Late Payments from Credit Report

Given below are the ways you can remove late payment records from your credit report:

1. Request your lender for a goodwill adjustment: If you have a good relationship with your lender/bank, you can request a goodwill adjustment. For this, you have to write a letter to your lender explaining the reason for the late payment. The lender might forgive your late payment considering your timely payment history.
2. Make partial payments: If your lender did not accept your request for a goodwill adjustment, you can make a part prepayment or partial payment against your unpaid debt.
3. Apply for automatic payments: If you request your lender to remove late payments from your credit report, you may be asked to opt for an auto-debit system. This will ensure that you make timely payments.
4. Complete your overdue payment: You can get your late payment record removed from your credit report by settling your debt.

Late payments can drag your scores down to a great extent which can be a hindrance to getting approvals for loans, credit cards, and more. However, if it is your first time making a late payment, use any of the methods listed above to ensure that your late payment record is removed.

How Should You Remove Inaccurate Late Payments from Credit Report

Checking your credit report on a regular basis ensures that there is no record of incorrect late payment on your credit report. If you wish to check your credit score for free, you can visit BankBazaar’s credit score page. In case a late payment has been reported incorrectly, you should check your credit reports from credit bureaus such as TransUnion, Equifax, and Experian.

If any inaccuracy has been found, you should file a credit dispute regarding the same. In addition to filing a credit dispute, you can contact your lender to get complete information.

FAQs on How to Remove Late Payment Records of Credit Card from Credit Report

1. Will a late payment record impact my credit report?

   Yes, late payment records lower your credit score making it harder to get approvals for loans.

2. How long can a late payment stay on my credit report?

   A late payment record will remain for seven years on your credit report from the date it was reported.

3. When is a late payment reported?

   A late payment is reported if you fail to pay your outstanding balance within 30 days after the due date.

4. By how many points will my credit score be reduced due to a late payment record?

   Your credit score can reduce by up to 100 points due to a late payment record.

5. What should I do if an incorrect late payment has been reported?

   If an incorrect late payment has been reported even if you made the payment on time, you will have to file a dispute with the credit bureau. The credit bureau, after investigation, will remove the late payment record if your dispute has been proved right.