How long do late payments stay on your credit report?
Your credit report can show a late payment for seven years. However, this doesn’t stop you from getting any other type of credit you might want or need. Your credit score can increase over time and there are many ways you can drop late payments permanently.
How to get late payments removed from your credit report
We are all aware that late payments that show up on your credit report are very damaging. Your payment history dictates how well of a credit score you have maintained. There are several steps you can take to getting late payments removed from your credit report. Your first step is to find out the impact a late payment will have on your credit score. This allows you to plan a strategy to get late payments removed.
Late payments and your credit score
It only takes one payment to hit your credit report to devastate your credit score. It doesn’t matter if it’s a mortgage, credit card or car payment, it can drop your FICO score by 90 to 110 points. Keep in mind, creditor or lenders can see these late payments even though they drop off over time. Late payments report in sections of 30, 60, 90, to 120 days.
How many days do you have before it’s reported to the credit agency?
Once your payment goes into 30 days past due, it reports to a credit bureau. It’s possible your creditor may not report at all depending on how they value as a client. If you are 90 days late, this can seriously affect your credit score. If a company closes your account and then reports your late payments, it can turn into a “charge off “. This means they will sell the balance to a collector. It’s always wise to avoid any collections, a repossession or charge offs on your credit report.
Removing a late payment on your credit
Ask your creditor for a Goodwill Adjustment. If you feel you’ve been a good customer, your creditor might extend this courtesy to you. Make sure you send a formal letter asking your creditor if it’s possible. If you had an emergency cost unexpectedly, they could give you some leeway. It doesn’t hurt to share personal details, but not too much, so that they get a good idea of your situation.
Sign up for automatic payments
This is always a good situation between yourself and the creditor. If you agree to automatic payments, they could find it suitable to remove your late payments. You win by no longer having the worry to make payments, additionally, you get the late payment removed from your credit report. It’s a good idea to consider this if you struggle to make your payments each month.
If you have checked your statements and you find an error, then simply dispute the payment to the credit bureau directly. It’s always good to send a copy of your statement, a formal dispute letter and sending it to all three credit bureaus. Typically a response occurs within 30 days. The law requires a response in this time frame.
Professional credit repair companies
If you don’t feel you can do all this yourself, then seek some help. There are companies designed to help you fix your credit in a short period. They also can handle several disputes at one time and help you remove other negative items that you might find on your credit report as well. You’ll be working with professional staff with legal experience and who are very knowledgeable about handling credit in general.
If you find yourself in a situation where you feel you may fall behind on your payments, call BMG Money. A short term loan may be the right answer to allow you enough time to get back on your feet, rather than falling behind on other important items that will have a long-term impact on your credit. We’re here for you, so apply today and get the financing you require.