Have you ever had a stain on a shirt that no amount of washing and detergent could remove? Getting rid of a late payment from your credit profile may feel just as frustrating. Maybe you had a hectic month, and you forgot to pay a bill because your mind was in a million different places. It’s just not fair!

Fortunately, late payments don’t have to linger like permanent blemishes. You can wash them away depending on your circumstances and how you approach removing them. So if you’re dealing with an unsightly late payment on your credit profile, pay attention and take notes. You might be able to clear them faster and easier than you think.

Caveats of Removing Late Payments

Before we detail the steps to take when removing late payments, keep in mind that it can be a smooth or tough process. It all depends on two things: history and context. What does that even mean you ask?

Well in terms of history, we’re talking about your record of making payments. If you have a longstanding history of making late payments or missing them altogether, attempting to remove a late payment may be trickier. Yes, there is merit and “good behaviour points” awarded to those with good payment habits.

When discussing context, we’re referring to the reason why you want to remove the late payment from your credit profile. There are typically two reasons that may grant you a pass on a late payment: 1) You’re not at fault for the late payment/it was an error, 2) You’re at fault but you have a genuine reason for it being late.

In the first case, where you’re not at fault, there’s a solid chance that you’ll have the late payment removed. This is certainly true if there was a reporting error on the credit bureau’s side. With the second case, however, it can be a bit trickier to remove a late payment unless you have a solid reason for making it late.

Then there’s the issue of history – in other words, your payment history. The simple fact is this: those who have a spotless or nearly spotless payment history will have a much easier time removing a late payment. Credit bureaus will see this clean record as a sign of trustworthiness and will be more forgiving if someone presents a good reason to have a late payment removed.

How To Remove Late Payments From Your Credit Profile

So now we’ll get to the nitty-gritty of the stuff you’re looking for. There are some practical steps you can take to get those pesky late payments off of your profile, and they don’t require too much effort or time. Just a bit of know-how.

Check Your Credit Reports

The first step to take when dealing with a late payment is to double check your credit report to see if your creditor has even reported it. Late payments won’t show up unless it’s at least 30 days past due, and in some instances, 60 days. In this case, your creditor may not even report the late payment especially if you have a good credit history.

Seek Out a Goodwill Adjustment

A goodwill adjustment involves your creditor forgiving your mistake and removing the late payment from your credit report. Essentially, you call or write the creditor a formal letter to explain why your payment was late (or incorrectly reported as late). You can add proof to the letter such as a medical bill or emergency expense. The stronger the proof and your case is in general, the more likely your creditor will remove the late payment.

Now it’s important to remember that your credit history has to look healthy and solid for you to get considered for a goodwill adjustment. So keep this fact in mind if you decide to go this route.

Negotiate With Your Creditor

Now let’s say your credit history isn’t the greatest. You might want to forgo the goodwill adjustment route and try a flat-out negotiation. One of the best ways to do this is to sign up for automatic/pre-authorized payments.

Doing this tells creditors that you’re willing to setup a payment arrangement that will greatly reduce the occurrence of late payments going forward, making you less of a high-risk client. In many cases, taking this initiative might encourage the creditor to wipe a late payment off of your report.

Final Considerations

There are some other avenues to consider too that may help your case as well. As we mentioned above, some late payments are genuine credit reporting errors, meaning you’ll have to dispute it. Of course, only dispute the credit report if there truly is an error.

Also, if you want to remove the late payment, you can seek professional legal help since there are some services that can help in this regard. Just remember that such services will come at a cost.

Keeping Your Credit Profile Spotless

Your credit profile is your ticket into the financing world, whether it’s for a car, a home, a business and more. Unfortunately, so many people are held back because of blemishes on their record, and late payments are one of the main reasons for this.

If you have a late payment (or a few even) and have a good case to warrant its removal, then make the effort to have a creditor erase it especially if you’ve maintained a good record. After all, your financial freedom depends on having a clean profile.