Accurate credit information is vital for your borrowing profile. Lenders use your credit report to predict whether you’re trustworthy and can make timely payments.
Missing payments adversely impact your creditworthiness and can have far-reaching consequences, including refusal when you apply for different kinds of lending.
However, you can sometimes remove missed payments under certain circumstances.
Read on to learn about your options for removing missed payments from your credit report to help improve or maintain your credit score.
What Are Missed Payments?
When you borrow or open an account with a creditor, you agree to make monthly repayments for the borrowed amount on a particular date. You’ll have a missed payment when you fail to make the payments you owe to a creditor.
Most lenders allow a grace period of 30 days after you miss the due date before making a report to credit reference agencies. However, agreements can differ among lenders, so ensure you review the terms of your deal to avoid being caught off guard.
Can You Remove Missed Payments from Your Credit Report?
Yes! You can remove missed payments from your credit report if they have been recorded inaccurately.
You also have the right to try removing missed payments from your credit report if they were on an account fraudulently opened in your name.
Generally, you can’t remove a missed payment from your credit report if you missed a payment and the lender is accurately reporting the issue.
However, some lenders can understand if you have extenuating circumstances surrounding the missed payment. For example, if you missed payments due to a medical emergency or natural disaster.
The creditor can agree to remove the late payment if you’ve brought the account current again and have a good history of making other payments on time.
Related bad credit guides:
- Mortgage with a bankruptcy
- Buy to let mortgage bad credit
- Can you get a mortgage with an IVA
- Mortgage with a debt management plan
How Can You Remove Missed Payments from Your Credit Report?
You can identify and remove missed payments from your credit report through the following steps:
Step 1: Review Your Credit Reports
The first step is downloading and reviewing your credit reports for details about the missed payments record.
It will help you identify which credit reference agency is reporting the issue, the actual accounts reporting missed payments, when they were reported, and the amount you missed.
Step 2: Determine if the Missed Payments Are Reported Accurately
Check the reports for errors regarding your payment dates or outdated information. You can also review your financial records about the account with missed payments to see if there is a discrepancy.
Creditors shouldn’t make a missed payment report to credit reference agencies if you’re less than 30 days past due.
Step 3: File A Dispute with Your Creditor
You can claim with the creditor or lender if you believe there is an error on your credit report.
Contact the creditor who reported the missed payment directly and include any document proving you paid, such as a bank statement or payment verification email.
The creditor will conduct an investigation. They’ll update the credit agencies to correct or remove the missed payment record if they agree there was an error.
Step 4: File A Dispute with Credit Reference Agencies
You can also dispute errors and inaccurate information on your credit report with each credit reference agency. Once you file a dispute, the agency will contact the creditor for verification.
You can submit disputes with all agencies simultaneously to avoid delays in correcting all your credit reports. After concluding its investigation, the agency will verify and remove the missed payment from your credit report.
How To Remove Missed Payments Tied to Fraud
Bad actors can fraudulently open an account in your name, and it can have missed payment records. The missed payment record can be accurate, but you’re not responsible for the fraudulent account.
In such cases, you should report identity theft and suspicious credit applications to the police. You must also contact CIFAS, the UK’s fraud prevention service, for protective registration.
You can then contact the creditor’s fraud department, informing them that the account was fraudulently opened in your name.
Submit copies of the reports to help support your dispute. Once the creditor verifies that the account was opened fraudulently, they’ll close it and send updates to credit agencies to remove it.
How Long Will a Missed Payment Stay on the Credit Report?
Credit reports show the missed payment record for six years after the creditor records it. As such, even a single missed payment can have long-lasting consequences on your creditworthiness.
Multiple missed payments will generally have a more significant impact.
However, the impact reduces over time since lenders pay attention to your most recent credit history. You can improve your scores by making future payments without fail and avoiding additional missed payments.
The missed payment record disappears from your credit report after six years, provided it’s fully settled. Repaying the debt can also help reduce its impact before the six years are up.
Recommended reading:
- Getting a mortgage with bad credit.
- Remortgages for debt consolidation.
- Mortgage application declined.
- Mortgage after repossession.
How Can You Avoid Missed Payments on Your Credit Report?
The following tips can help you avoid getting missed payments on your credit report:
Set Up Autopay or Direct Debits
Set up autopay or direct debits and ensure enough money in your account to avoid accidentally missing payments.
With such setups, the minimum monthly payments leave your account automatically so you can meet your obligations on time.
They offer peace of mind since you don’t have to worry about remembering to make payments.
Create A Budget
A realistic budget can ensure you don’t overspend and chip into your loan repayment funds. Assess your spending habits when creating the budget and set aside extra funds to cover unexpected costs.
Contact the Creditor
Reach out to your creditor as soon as you realise you’ll miss a payment. They may have hardship options like lowering your minimum payment amount or allowing you to skip a payment to ensure you don’t fall behind.
Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.
Final Thoughts
You can remove missed payments from your credit report if they were added by mistake or due to fraud. Lenders can also agree to remove the record if the missed payments resulted from unavoidable circumstances.
