When Do Late Payment get reported?
Most creditors start reporting a late payment at least 30 days behind the due date. Fines or additional fees are also being charged even if you are a day late. We always suggest that you pay before your agreed payment due date with the creditor to avoid this from happening. The calculation of the deduction from your credit score is based on how long you were not able to pay and your running credit score.
How Do Late Payment Affect Your Credit Score?
As mentioned, the calculation of the deduction from your credit score is based on how long you were not able to pay and your running credit score. For example, if your credit score is 775 and you incurred a late payment, 90-110 points will be deducted from your score. As for clients with a credit score of 675, their score will be deducted by 60-80 points. Also, paying a few days behind your due date is okay and is not a big deal. But once it reaches over 30 days, usually your score will be deducted.
How Long Will A Late Payment Status Say On My Account
A late payment usually stays up to seven years on your credit score. Yes, a single delayed payment can ruin your score that long. However, the good thing with late payment is it's not as severe as other negative items such as Collections, Bankruptcy, and other public records. This can easily be fixed by paying the lender on time.
How to Remove Late Payment From Credit Report
1. Send a Goodwill Adjustment Letter
The process includes writing a letter to the creditor explaining why you paid late. You ask for forgiveness of the late payment and assure them it won't happen again.
2. File a credit dispute
If you dispute an inaccurate late payment, the creditor or credit bureau has 30 days after receiving your dispute to investigate the claim. When the creditor or credit bureau has finished the investigation, you should be notified of the results.
If the creditor has proof that the information they are reporting is correct, it can stay on your credit report. However, if the creditor agrees that the information is incorrect, the creditor must tell all of the credit bureaus to remove or edit the information from your credit report.
3. Hire a Professional
If you would rather have a professional help you handle late payments, you may want to consider professional credit repair services like Kin Credit Repair. We create an individualized credit repair plan for each client and can send goodwill adjustment letters on your behalf. Sign up to get free credit repair consultation.