Late payments can significantly damage your credit score, making it harder to secure loans, credit cards, or favorable interest rates. Whether your late payments were accidental or due to financial difficulties, you might be wondering how to remove late payments from your credit score. Fortunately, there are ways to correct errors, negotiate with lenders, and rebuild your credit profile.
How Late Payments Affect Your Credit Score
A late payment is reported to credit bureaus when it is 30+ days overdue, and the impact on your CIBIL score depends on how late the payment is:
- 30 Days Late: Small impact but still lowers your score.
- 60-90 Days Late: More significant drop in credit score.
- 120+ Days Late: Account may be marked as a default, severely affecting your credit profile.
If you’ve recently missed an EMI, learn How to Improve Credit Score After Late EMI Payments.
How to Remove Late Payments from Your Credit Report
1. Check Your Credit Report for Errors
Before taking action, review your credit report from CIBIL, Experian, or Equifax to ensure that the late payment entry is accurate. If you find discrepancies, you can dispute incorrect late payments with the credit bureau.
To check your credit report, read How to Check CIBIL Score for Free.
2. Request a Goodwill Adjustment from the Lender
If you have a history of making on-time payments and missed one due to an oversight, you can request a goodwill adjustment from your lender. Write a polite letter or email explaining your situation and request that they remove the late payment from your record.
3. Dispute Inaccurate Late Payments
If the late payment is incorrect, file a dispute with the credit bureau. Credit bureaus are required to investigate disputes within 30 days and remove errors if they find them valid.
To compare different credit bureaus, check Experian vs. CIBIL vs. Equifax: What Are the Differences and Which Is Better?.
4. Negotiate a Pay-for-Deletion Agreement
Some lenders may agree to remove late payment records in exchange for full payment of the outstanding balance. However, this approach works better with smaller lenders rather than large banks.
5. Set Up Auto-Payments to Avoid Future Late Payments
Once you’ve resolved past late payments, set up auto-debit instructions on your account to ensure timely future payments. This will help improve your credit score over time.
If you’re struggling with your credit score, read How to Increase CIBIL Score from 600 to 750.
How Long Do Late Payments Stay on a Credit Report?
Late payments stay on your credit report for 7 years, but their impact reduces over time. If you continue making on-time payments, your score will gradually improve.
For faster recovery, check 5 Easy Ways to Improve Your CIBIL Score.
Conclusion
Removing late payments from your credit report requires effort, but it’s possible through disputes, goodwill letters, and negotiations. Whether the late payment was an error or an oversight, addressing it quickly can help improve your credit score and financial stability.
If your CIBIL score has dropped, check out What to Do When Your CIBIL Goes Down? to take corrective action.
FAQs
1. Can late payments be removed from a credit report?
Yes, you can dispute incorrect late payments or request a goodwill adjustment from your lender.
2. How long does it take to remove a late payment?
Credit bureaus typically take 30 days to investigate and update your report if your dispute is valid.
3. Will my credit score improve if a late payment is removed?
Yes, removing a late payment can boost your credit score, especially if it was a recent negative mark.
4. Can I negotiate with my lender to remove a late payment?
Yes, some lenders may agree to remove a late payment in exchange for full repayment (pay-for-deletion agreement).
5. How can I prevent future late payments?
Set up auto-payments, reminders, or opt for a Flexi-loan to ensure you never miss a due date again.
