Most people are aware of how late payments of existing loans or credit card dues can affect their credit score negatively. However, do you know that you can remove the late payment details from your credit report? It is possible to remove that part to make your credit portfolio look more attractive to future lenders when you need loans.
While using credit cards, paying the outstanding balance on time is crucial since it will affect your credit report later. However, it is possible to have late payments due to many reasons. The late payments often result from genuine problems such as medical emergencies. Also, there can be faulty reports where you have already made the payments on time, but the report shows dispute data.
Here are some ways you can remove the late payment details from your credit report:
Talk to your Lender
The first step is to contact your service provider or the lender to inform them about the issue. Either call or write a letter regarding the problem you are facing regarding your credit cards.
If you call your lender, you need to convince the other person that you had a valid reason for the late payment. While talking, try to keep a formal and polite tone not to offend the other person if he is not convinced. After that, you can request that person to remove that data.
If you choose to email your lender, try to be as clear as possible about your reasons. Address all your problems and add proof. Make valid points and attach documents as proof. This step can be done as a physical copy of the letter too.
Remember to contact your lender as quickly as possible before they report the Credit Bureaus. Make sure to contact the lenders within 30 days of the late payment with sufficient proof.
Give Valid Reasons for Late Payments
The entire process will depend on how well you can convince the lender. The lender needs to believe in you and thus, provide genuine and acceptable reasons. If you have genuine reasons like medical emergencies, any kind of natural calamity, accidents, and so on, then your lender would be considerate of your situation. Petty reasons will not work in such scenarios. Missing credit card bills even after warnings just because you forgot is an unacceptable reason for them. Since you can make any credit card payment online within minutes, such excuses will be dismissed.
In case of any reason, you need to provide proof. You need to attach those copies to prove your situation in medical emergencies or hospitalisation. Also, there can be a discrepancy in your credit report where the already paid bills might show as unpaid or late. In such cases, you have to submit your transaction details for the payment. This will support the fact that you have already paid, and the authorities will take the necessary steps to rectify this.
Use your Previous Credit History for Backup
If you have maintained great credit behaviour in the past, that can support you here. Your lender will look that up, and you can convince them by using your reputation. There can be one-time mistakes in terms of late or missing payments, and in such cases, keeping in mind your past credit behaviour, the lenders might consider removing that particular credit card payment.
The final step is to initiate negotiation with the lender. When none of the previously mentioned ways work, you will have to consider negotiation with the lender where both of you can have benefits. You can discuss compensation and other options and ensure that this will not happen in the future. This way, your lender will regain trust in you. To win your lender’s trust back, you can repay any existing loan or show your lender the rest of the credit history.
If you want to get a credit card, a credit score is something that comes with it. Maintaining a credit score needs accountability since it depends on how you repay the borrowed money. Ensure paying your bills on time, and making credit card payment online now takes just a few minutes. While removing a late payment is possible, it is not suggested to do it over time because you will gradually lose your lender’s trust this way.