How Long Does A Late Payment Stay On Your Credit Report

Can a credit repair company erase poor credit history?

Did you know that one of the main credit reports lenders will ALWAYS look at is your payment history?

It doesn’t matter if it’s your credit cards, loans, lines of credit, or anything else in between that might pop up. 

They do this to make sure that your history reflects well on your commitment to making payments on-time. After all, they need to know you’re responsible if they are to allow you to take out a mortgage. 

That said, we all make mistakes, deal with unexpected circumstances, and what can we say, LIFE HAPPENS! That’s why it’s good to be ready to combat a late payment that’s affecting your score with a credit repair company.

In this post, we’re going to discuss late payments. 

We’ll go over the many questions that you may have about how long these blemishes will stain your credit report, and what you can do about it. 

Of course, we’ll also figure out just how helpful a legit credit repair company can be in handling these credit report stains in the most effective way possible.

If your credit is less-than-perfect, and you wish to improve your credit score, then it’s time to discover the facts about credit scores and late payments. Let’s get moving.

What Are the Things Covered in a Credit Report?

Your credit report is an important document that’s used by creditors, lenders, and even employers to measure your financial reliability. 

It’s a snapshot of your financial life. It’s composed of information like loan accounts, credit cards, auto loans, and mortgages. 

Some other things included in this section are public records such as bankruptcies or foreclosures.

Apart from this, it also contains information on late payments such as statements sent by creditors for overdue payments or accounts turned over to collection agencies or sold to other companies for further collections.

Types of Credit Reports

There are two credit reports: one from each of the nationwide consumer reporting companies–Experian and Equifax.

You’re considered a consumer for the purposes of credit reports if you’re a natural person who is under no legal obligation to pay an obligation relating to the credit. 

You take out loans or credit for your own personal use and not to purchase real estate investments, stock in companies, or other business transactions.

What is a Loan?

A loan is an agreement where one party (or several parties) agrees to give another party an amount of money in exchange for repayment in full with interest in a specific period of time. A loan can be secured or unsecured.

What is a Creditor?

A creditor is any company that provides you with credit.

Missing Payments and Late Payment History Hurts Your Credit Score the Most 

Missing payments and late payments are definitely items that hurt your credit score. Lenders, bankers, and other financial institutions take late payments very seriously.

The average time for a late payment to hit your credit report takes about 30 days from the date it happens. However, there is no definite time period set in place for how long a late payment remains on your credit report. 

When it comes to inquiries, the information stays on your report for up to two years from when the account was last updated or closed out.

What is a Credit Repair Company?

A Credit Repair Company is a company that provides services to help individuals improve their credit.

These companies can offer you different methods to improve your credit score and help you get access to the best available rates for borrowing money.

You can receive an estimate on the cost of debt consolidation, a monthly budgeting service, and a free copy of all open accounts in your name at any given time through your credit report.

The people who work for these companies know how to make small but smart modifications in your credit score. 

A credit repair company will possess the knowledge of what changes should be made to your account report, as well as the resources necessary to make those changes happen quickly and effectively.

So, Can I Use a Credit Repair Company to Get Rid of My Late Payment History?

Consider this example:

A man went to a credit repair company looking for an improvement in his credit score. He was about to put down the down payment on a house, and he wanted to make sure that his credit report was ready for inspection. 

What he found out next was that there had been a late payment on one of the accounts included in his report. As a result, his score dropped by nearly 40 points. 

While he could have corrected this himself, it would have taken him at least 6 months to do so. And all of this time, the blemish in his record would’ve been affecting how he was viewed by potential creditors and lenders.

So, in short, yes, a reputable credit repair company is going to help you remove the late payment history that sticks out like a sore thumb on your credit report.

Can a Credit Repair Company Erase a Poor Credit History?

Using a credit repair company to erase your late payment record depends on the situation you are in.

If you are looking to apply for a secured loan, like a car loan or housing loan, then yes 

If you are looking to improve your credit score for any reason, then no.

Where to Find a Credit Repair Company?

You can often find credit repair companies on the internet.

If you are looking for one that has good reviews then you will have to do some research. You should look for a company with a good selection of services they offer, and an affordable price tag. 

You may also want to search for a company with high ratings and reviews from other consumers who’ve used their services before. A rating of four or more stars out of five is considered by many to be the optimal score. 

The safest way to find a website that provides the type of information you are searching for is by using Google or typing “credit repair, credit repair company” into your search engine window.

After Thoughts

Bottom line: If you wish to improve your credit score and do away with the damaging history of late payments and the like, then you should definitely use a credit repair service.

Credit repair is important.  Low credit scores generally mean you’ll face a much higher interest rate. 

This, of course, leads to higher finance charges on your credit card balances. Repairing your credit will allow you to get a more competitive interest rate, which will save you having to constantly break the bank.

So what are you waiting for???

Get ahead of the loan sharks, and get it done the right way, with a credit repair company.

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