Your payment history is the most influential factor in credit scoring models like FICO, making up 35% of your score. Even a single late payment can significantly lower your credit score, impacting your ability to secure loans, favorable interest rates, and financial opportunities. Whether the late payment on the report is due to your negligence, a misunderstanding, or even fraudulent activity, the good news is that you can take steps to remove it and restore your credit standing.

To help you navigate this process, we’ve compiled a comprehensive, research-backed guide on how to remove late payments from credit reports effectively. Keep reading to gain valuable insights and take control of your financial future.

The Impact of Late Payments on Your Credit

A 2021 Federal Trade Commission (FTC) study found that 1 in 4 consumers identified inaccuracies in their credit reports that could affect their scores.

 

When a payment is overdue by 30 days or more, lenders report it to credit bureaus, causing your score to drop. The longer the delay—such as 60, 90, or 120 days—the more severe the damage. For example, if someone with a high credit score of 750 misses a credit card payment by 30 days, their score could drop by 50–100 points, depending on their overall credit profile. In contrast, someone with a lower score sees a smaller drop, but the negative mark remains on their credit report for up to seven years. Also, repeated late payments can lead to higher interest rates, late fees, and difficulty obtaining new credit. Check out the table below to get a quick overview:

 

Days Late	Impact on Credit Score	Consequences
1-29 Days	No impact on credit score	Incur late fees, possible penalty APR
30 Days	Minor to moderate score drop around 90-110 points	Reported to credit bureaus, affects creditworthiness
60 Days	Larger score drop, i.e., a drop of around 130-150 points	Additional late fees, potential account restrictions
90 Days	Significant score damage	Higher risk for lenders, potential charge-off warnings
120+ Days	Severe negative impact	Accounts can be sent to collections, legal actions possible, and challenges in obtaining future loans

How to Remove Late Payments From Your Credit Report

Follow this guide on removing late payments from a credit report, as these remain on your credit report for up to seven years from the original delinquency date and can negatively impact your credit score:

1. Obtain and Review Your Credit Reports

Start by requesting credit reports from major credit bureaus like Experian, Equifax, and TransUnion on your credit repair journey. Carefully examine each report for late payments, paying attention to:

✔ The account name and lender
✔ The reported date of the late payment
✔ The past-due amount

Important Note: Creditors report to bureaus at different times, so minor differences across reports don’t always indicate an error. Focus on identifying genuine discrepancies before filing a dispute.

2. Verify the Accuracy of Reported Late Payments

Compare the information on your credit reports with your bank statements, payment receipts, or lender notifications. Some key points to check:

✔ Did you actually miss the payment?
✔ Was it reported correctly? (Creditors report late payments only after 30 days past due)
✔ Are the details accurate? (Account number, date, and balance should match)

If you find discrepancies, you have grounds for a dispute.

3. Dispute Inaccurate Late Payments

If you find an error, you can dispute it with both the creditor and the credit bureaus.

a) With the Creditor

Contact the creditor or lender that reported it and provide documentation such as:

 ✔ Proof of on-time payment (bank statements, receipts)

 ✔ Email confirmations from your lender

 ✔ Any communication showing the error

If they confirm the mistake, they will update your records and notify the credit bureaus to remove the late payment.

b) With the Credit Bureaus

If a creditor does not resolve the issue or refuses to correct the error, you can escalate the dispute by filing it directly with the credit bureaus. Take a look at how to file a dispute online:

✔ Visit the credit bureau’s dispute center (Experian, Equifax, or TransUnion).
✔ Locate the account with the incorrect late payment.
✔ Select the reason for your dispute.
✔ Upload supporting documents (e.g., proof of on-time payment).
✔ Submit your dispute and monitor updates.

Disputes can also be filed via mail or phone. The credit bureau must complete its investigation within 30 days, and if the error is confirmed, the late payment from the credit report will be corrected or removed. Updates can take a few billing cycles to reflect in your credit report.

4. Request a Goodwill Adjustment

If the late payment is legitimate but was a one-time mistake, you can send a goodwill letter to your creditor. This letter should:

✔ Explain why the payment was late (e.g., medical emergency, job loss).
✔ Highlight your history of on-time payments.
✔ Request the removal of the late payment as a goodwill gesture.

Many lenders approve your request if you have a strong repayment history.

5. Negotiate a Pay-for-Deletion Agreement

You can try negotiating a pay-for-deletion arrangement, if your account is past due or sent to collections. This means offering to settle the debt in exchange for late payment removal from your credit report. However, not all creditors accept this approach, so ensure you have written confirmation before making any payments.

6. Handling Late Payments from Fraudulent Accounts 

It’s important to take immediate action if the late payment is related to a fraudulently opened account in your name. Since the late payment itself is technically accurate, the key is to prove the account was fraudulent. Here’s what to do:

✔ File an identity theft report with the Federal Trade Commission.
✔ Report the fraudulent account to local law enforcement and obtain a police report.
✔ Contact the creditor’s fraud department and provide copies of these reports.
✔ Request that the fraudulent account be closed and removed from your credit reports.

Once the lender verifies that the account was opened fraudulently, they will notify the credit bureaus, and the account, along with any associated late payments, will be removed from your record.

By following these steps, you can effectively address inaccurate late payments and work toward improving your credit health.

How to Avoid Late Payments

Now that you know how to remove late payments from your credit report, it’s crucial to take proactive steps to avoid them in the future.

Here are some effective strategies:

1. Set Up Automatic Payments – Most banks and lenders offer auto-pay options, which ensure that bills are paid on time without manual intervention.
   
2. Use Payment Reminders – Set calendar alerts or use reliable budgeting apps to remind you of upcoming due dates. Some banking apps also provide notifications for pending payments.
3. Create a Budget – Effective financial management helps ensure that you have enough funds to cover your bills. Track your income, expenses, and due dates to avoid missed payments.
4. Request a Due Date Change – If your bills are due when cash flow is low, reach out to your creditors as soon as possible. Many lenders offer hardship programs that allow you to:

• Skip a payment or adjust the due date.
• Lower your minimum payment temporarily.

These options are typically available for temporary hardships like job loss or medical emergencies, so it’s important to communicate your situation early and explore available relief. While late payments can impact your credit, they don’t have to define your financial future. Consistently making on-time payments and maintaining good financial habits will contribute to long-term credit repair and stability, helping you regain control of your financial health.

For expert guidance, Reliant Credit Repair offers professional assistance in business credit building. Trusted by industry leaders like Equifax, Genworth, and others, we are one of the most reputable credit repair firms. Our comprehensive business credit-building program is designed to help you establish a strong credit profile quickly and efficiently, ensuring long-term financial success.