Find out why your debt to income ratio is becoming more important now then in years past in this video.

If you are unfamilar with the platform or have never used it, this video is a must see. Find out why in this quick review of the website.

Here is the link for your review: https://www.usatoday.com/money/blueprint/credit-score/what-score-approval-american-express/

Although the ads and claims made by the company seem tempting, you may want to watch this video first before visiting their website. Debt relief is not as easy as they claim it to be.

#1 Credit Utilization Ratio

#2 Reduces The Length of Your Credit History

#3 Limits Your Credit MIx

So can late payments be removed, and is credit report late payment removal a fantasy?

To answer that question it unfortunately requires a little more explanation and detail.  No I am not going to give an in-depth view of the history of credit or the nuances of the credit report.  Although important, that is not the focus of the topic.  

I will however begin with the fact that it is important to remember that a late payment is associated with a specific account.  I will also remind you that the three factions Equifax Experian and Transunion are not identical. They also do not interpret credit information at the same time, and what may show on one report does not mean it will be reflected the same way on the other.

I will also inform you that late payments typically stay on your credit report for 7 years, making it ever more important to review your credit reports regularly.  Fortunately this is extremely easy to do since platforms such as Experian and Credit Karma provide regular access to your credit score and credit report seamlessly.

Now that the detour of detail has at least been presented , I  can now move on to the point of this article.  

Yes,a late payment can be removed. However it can only be removed on 3 occasions. 

Spoiler Alert: Two of these occasions are not guaranteed.  In fact it is unlikely you will get the payment removed with the other 2 options I will discuss after the guarantee way for removal.

Sorry to be the bearer of bad news but I believe honesty is the best course of action.  Now, This does not mean the other two options are impossible to achieve but lets say rather unlikely.

So lets start with the good news and begin with the one occasion where there is no doubt it will be removed.

If there is an error where you made the payment on time and you can show proof , you can definitely have that late payment removed.  

All you will have to do is go to the credit report you saw the error in question and file a dispute. The process is quite simple, each of the 3 major consumer credit bureaus allow you to dispute the error directly on their site.  

It is also important to know ,you can also have a  late payment  removed if the late payment is over 7 years old.  The only challenge you will run into on both of these incidents  is the burden of proof. 

I can’t stress this enough.  You must have evidence showing that this in fact is an error.  Detailed bank statements or other proof of payment documents on the day, month, year of question must be provided to make your claim.  

Do not fall into the fantasy that has been told lately of late payment removal with gimmicks that do not work.  Legitimate errors with substantiated proof is the only way to have something successfully removed from your credit report.

2nd Occasion for Removal:  The Goodwill Letter

There is no mystery when constructing a “Goodwill Letter”.  The Goodwill letter is simply a document explaining why you couldn’t make your payment on time.  The hope or intent would be to appear to the creditor’s good graces.  Magically your creditor will “poof” remove the derogatory late fee that is damaging your credit score.  Sorry to be sarcastic here, but the likelihood is statistically low.

Creditors are required to report accurate information to the credit bureaus making this option even more unlikely.  The best move is to try to catch the late payment before it makes it to your credit reports.  You will have to call your creditor ASAP and hope you can resolve it with them before it goes any further.  But this only has any chance of working if you possess a stellar payment history.  This history must be truly be worthy, comprising numerous years of on time never late payments. ‘Oh yeah one more thing this must be your first offense’ .

Otherwise it may be a frivolous attempt, but you can try.

3rd and Final Occasion for Removal:  “Pay-For Delete”

The 3rd and final occasion for removal is the “pay-for delete”.  This option is toted and heavily promoted by debt collectors promising to have a collections account removed from your credit reports if you pay off the account.

This option is sketchy at best.  In most cases you typically do not have an established history with the creditor and if your account has moved to collections it is now in the hands of a company who paid a fraction of the debt to collect on.

The collections company incentive is to get as much money as it can to recoup what they paid and make a profit.

Another thing to consider is although the practice in theory is not illegal it falls in the gray area.  The reason is by law creditors and collection agencies must accurately report payment history.  Most debt collection companies will not disclose this vital piece of information because they will not be able to charge you for your ignorance.  

Its also important to remember three additional sub points: 

1) If the account has been sent to collections, and against all odds the collection agency agrees to withdraw its report to the credit bureasus ,this still will end in failure.

2) The account they have purchased is a secondary account and cannot be removed since they are not the original creditor. 

3) Finally The original creditor has likely named/deemed it as “charged off” or “transfer to collection” to the credit bureaus. One of these terms will stand on your credit report.

If you are still under the delusion that you can somehow miraculously get this late payment removed by following the advice of some random fake credit guru on youtube keep this fact in mind.

The credit bureau has 30 days to investigate any claim, so it may take 30-45 days to receive a response.  You have to have overwhelming proof your claim is actually true for them even to consider removing it.  99% of the time they will disagree because you cannot show compelling evidence.    Even if you found a way to fool the bureau for the short term they will find out in the end. The item that was once removed will resurface at the most inappropriate time. For example when you are in the process of purchasing a mortgage. 

Bottom line and Finishing Thoughts

 We all know Your payment history is an important factor in your credit. Late payments typically stay on your credit reports for up to seven years.

If you find a late payment in your credit reports that shouldn’t be there, you can file a dispute and ask the corresponding creditor or credit bureau to remove the inaccurate information.

The key here is legitimate accurate information and overwhelming proof will constitute removal.  Every other attempt is pure speculation and has little or no chance of removing late payments from your credit report.

Here is the link: https://techcrunch.com/2022/07/21/fintech-tomocredit-raises-22m-toward-its-effort-to-make-the-credit-score-obselete/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJgwbqa5cKK_PZaPr7ElgDauJ5DWDSdyw3uHpFAnojtKf4zIwloRiZxWvAKopmZoEekqRVU_bH7pTzzLuPOCkvRuovAFgnhz4A-ZzKYnOCCEIYz2qmIx4_HEeY6ZGUOsm4FS1FxlUMte57Bs5A1LDqunbJnxGjPmq-XeDYP2TKhP#:~:text=Link%20Copied-,TomoCredit%20raises%20%2422M%20at%20a%20%24222M%20valuation%20toward,of%20making%20credit%20scores%20’obsolete’&text=When%20Kristy%20Kim%20started%20TomoCredit,later%2C%20that%20mission%20has%20evolved.

2) https://www.tomocredit.com/

Find out what you need to be aware of, in this must see video.

The 3 areas are :

1) History of Your Credit Age

) Mix of Types Of Credit- Revolving & Installment

3) The number of Inquiries.

All 3 are vital to having a high fico score and they are the least paid attention to.