No quick fixes for removing late payment from credit reportInaccuracies can be purged from your report, but your real credit goofs likely can't
Dear Credit Score Report,
I
have a credit score of 676 and am in the process of applying for a loan. I need
help to raise the score by 30 to 50 points. The only derogatory item is a one-time
late payment on a Chase credit card in September of 2009. I need your help in
removing this from my credit report. What do you advise? Thank you. -- Sam
Hey Sam,
It's unlikely you can delete that late payment from your
credit history. With the traditional dispute process, banks and credit bureaus will
remove inaccuracies from consumers' credit reports. But it sounds like you really
did fail to pay on time, meaning that the item in question is accurate. Under that circumstance, you'll need to wait
seven years from the original delinquency date for that late payment to be
deleted. While you wait, you can -- and should -- focus on cleaning up your
credit and becoming the most responsible borrower possible.
That may not be what you want to hear, Sam, since you want
that loan now, but there likely aren't any quick fixes or short cuts to improving
your credit score.
I asked Chase whether it might agree to stop reporting your
late payment, but the bank doesn't appear likely to comply. "Chase has an
obligation under law to report accurately any information reported to the
credit reporting agencies," says spokeswoman Gail Hurdis. So expect that delinquency to remain on your
report.
What about enlisting outside help? Experts say to beware of
credit repair firms promising they can clean up your report. "While there
are businesses that may promise to 'fix' credit problems, usually in exchange
for an upfront fee, any consumer considering such a step should proceed with
caution," says Steven Katz, spokesman for credit bureau TransUnion. Others
agree those firms are trouble. "The Federal Trade Commission (FTC) says do
yourself a favor and save some money, too. Don't believe these claims: They're very
likely signs of a scam," the FTC's website
says.
You'll be better served by working -- within the law -- on
your own behalf. Begin by checking your other credit reports for inaccuracies
and disputing any you find. Meanwhile, continue to make all your account
payments on time. "Consider setting up an automated monthly payment from a
bank checking account for at least the minimum due on credit cards and other
accounts," TransUnion's Katz suggests. Additionally, don't apply for any
new lines of credit that aren't absolutely necessary, and work at reducing your
debt levels to improve your utilization ratios. You can also attach a 100-word statement to your reports explaining to lenders why you failed to make that
payment on time.
Over time, your credit will recover. "The further in
the past the delinquency occurred, the less impact it will have on your credit
scores," says Rod Griffin, director of public education for credit bureau
Experian.
Good luck!
--Jeremy
See related: The good guys of credit repair, FTC cracks down on 'credit repair' scammers, How to dispute credit report errors, Decade-old credit mistakes shouldn't appear on your report, How to add a written statement to your credit report
Jeremy M. Simon is a former CreditCards.com reporter who wrote about credit scoring, economic data, credit card crime and other issues. He is based in Austin, Texas. He is a graduate of Vassar College and has previously worked for Thomson Financial in New York City, where he wrote about the stock markets, and Texas Monthly, as well as several publications in Austin.
Send your question to The Credit Score Report.
Published: December 14, 2010
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