How to delete late payments from credit report
How is credit repair possible?
The Fair Credit Reporting Act (FCRA) enables the consumer to challenge and delete any information on his or her credit report for "completeness and accuracy." Anytime a consumer files a dispute, the credit agencies are required by law to contact the creditor and confirm that the information is verifiable, accurate, and not outdated. In some scenarios, the credit bureau must exceed a simple verification of the creditor's record. If the credit bureau has not received verification from the creditor within 30 days, then, the credit bureau is required to promptly remove the disputed credit listing.
A recent settlement between the State of New York and the three largest credit bureaus will give consumers a grace period of six months before medical debts appear on a consumer's credit report. The credit agencies will be required to remove a medical debt/collection once it is reported as paid or settled.
The first step in removing bad credit is to obtain a copy of your credit report. Everyone is entitled to a free credit report from Equifax, Experian, and TransUnion at your request, once every 12 months. Unfortunately, the credit agencies are not required to provide you with your credit score. The agencies will provide you with your credit score for a fee.
After obtaining your credit reports. Carefully compare the credit reports. It is possible that bad credit is reported on one report and not on another. If you believe that the bad credit is in error, dispute it with the credit agency.
How old is the bad credit?
The time period is seven years for delinquent and unpaid credit accounts. Chapter 7 bankruptcies take 10 years to fall of a credit report. Unfortunately, seven or ten year time period is not always observed because collection companies buy and seller delinquent accounts. The start date for the seven-year credit report clock is the date of delinquency with the original creditor.
Many creditors wants to continue to do business with you, and may remove derogatory credit listings in order to continue that relationship. The industry term is "goodwill adjustment". It can’t hurt to ask the creditor to remove the late payment.
Be careful with charge off accounts
You might be tempted to payoff a charge off to improve your credit score, however, if the debt is paid off, the account will be updated and consequently, the seven year clock on the debt may start all over again. The only exception would be if you could get the creditor to agree in writing to remove the delinquency from your credit report.