So here’s the thing, we all know what late payments are how they happen and why they happened. It’s a simple concept, you forgot to make the payment, or you were just late on the payment. But the unfortunate thing is that a simple mistake can really come to haunt you when you’re looking at your credit report. Even though they don’t seem that severe, like we’ve mentioned before anything that goes on your credit report is solely based on the lender you’re with. So if you made a few late payments on your mortgage, the bank May notify the credit bureau and put you in for some late payments. Something like this can stay on your record for about 7 years.
Late payments can really hurt your credit score if you’re not careful. Most lenders will report you to the credit bureau 30 days after the first payment was due, some even 60. It’s a nice time frame for you to make a payment. Although if you fail to do so, a late payment can almost knock your score down by a hundred points. Can you imagine that? Being a prime customer to lenders and one late payment bringing you down to an average?
Some may consider late payments as just late payment. Quite frankly that isn’t the case, they have different intervals at and each one affects your credit score much differently. So for example being late 30 days on a payment is not as impactful as one being late 90 days for payment. So here’s a little breakdown being late can affect your credit score.
30 days. Being 30 days late often on a payment can be quite impossible to your credit score. Although only if you’re late for one payment don’t sweat it, the impact won’t be something Everlasting.
60 days. Just like 30 days, if you’re making late payments surpassing the 60-day mark multiple times, it’ll affect your credit score heavily. Although being late 60 days once won’t be as impossible as you think it would be.
90 days. This is where the impact starts to show if you’re late once for 90 days on your payment it will affect your credit score. An infraction like this can remain on your credit report for up to seven years, and to lenders, that’s not something good. So if you can avoid being late on a payment for over 90 days definitely do so.
120 days or more. On the standpoint of looking at the credit report, there is no additional damage is done. Although, there are side effects to this. We say side effects because the Damage done to your credit report is based on the lender. So if you’re late but over 120 days, the lender may send off your information to a third party collection agency and they’ll be requesting payment. So not only will your credit score be affected by your late payment, but it can also be affected by the fact that it’s gone to a collection agency or if the lender chooses, it can be written as a charge off.
We don’t mean to scare you with late payments, like everything else on your credit report you can have it disputed and also removed. Here are a few tips for you if you have a late payment on your credit report and you want it removed.
Review Your Reports. Checking your credit reports regularly can help you gauge whether or not a late payment is legitimate or not. But because late payments are solely based on the lender, we advise you to check your credit report with the three major credit bureaus. Simply due to the fact that there could be a discrepancy between your credit reports.
On the topic of credit reports, you should definitely look for late payments that are incorrect or even old. If it’s a late payment on your credit report that’s older than 7 years have it disputed and removed. Likewise, there are some instances where you pay the bill on time but it has been reported as late.
Goodwill Letter. A Goodwill letter is pretty straightforward, your right to the lender explain why you weren’t able to make the payment on time. From our experiences and the stories, we’ve heard lenders are more than willing to remove any negative credit items regarding payment history simply based on a Goodwill letter. But it’s also on you if you’re aware that you’ll be making a late payment definitely called your lender and let them know but you will be making a late payment. Guaranteed they’ll be understanding and you won’t be penalized.
Pay for Delete, Negotiation. This tactic is where you would meet with the lender and explain the situation and negotiate a settlement. Essentially what you’d be doing is telling your lender that you pay either part of the amount of info in exchange for them to remove the negative item off your credit report. This method does work but we strongly recommend that you have this in writing and not do it over the phone.
Credit Repair Services. If you find it difficult to deal with the credit bureaus or even lenders to have negative items removed off your account, look into a professional to do it for you. They know the ins-and-outs and how to do it correctly so you have the least impact on the least stress when it comes to removing negative items off your credit report. Recommend calling a local agent near you who is wild versed in credit repair services and who can help you out by disputing negative items on your credit report.
Payment history weighs heavily on your credit report if you’re in a position where you know that you can do something about it definitely do so. If you’ve lost a job, unable to make payments on time definitely contact your lender and let them know. Lenders are very understanding with situations like this and they are more than helpful. Take these preventive measures so you won’t be penalized in the long run. If you see a late payment history on your credit report at that’s inaccurate, definitely dispute it and have a professional remove it.