Learn: Removing Late Payments

Learn: Removing Late Payments

• The Basics
• Getting Approved for Credit Cards
• SoHo Strategy: Deducting Credit Card Interest
• Debt Consolidation
• Pre-approved credit cards
• Getting the Lowest APR
• Divorce and Credit
• Removing Late Payments

by Gerri Detweiler

Q: I was turned down for credit recently because of late payments. I got a copy of my credit report and it listed some accounts that were late in the past, but I've since paid in full. I heard that once you pay off a bill it's supposed to be removed. What can I do to get it taken off my report?

A: There is a big misconception floating around that once you pay off an account, it should no longer be listed on your report. That's just not true. If you have been late and the payments were reported to a credit bureau, they'll stay on your credit report for seven years. However, the fact that you have paid the account off is good, and you should make sure that your credit report reflects a zero balance. The older late payments are, the less important they become to most lenders.

So just keep paying your bills on time, and perhaps try applying somewhere else in a couple of months. By the way, positive information about accounts can stay on your report indefinitely.

About Gerri Detweiler: A consumer educator and advocate, Detweiler has been helping Americans better manage their money for more than a decade. She has written articles for publications including Woman's Day magazine and Bottom Line, and has been quoted in numerous national publications including The New York Times, USA Today, The Wall Street Journal, and The Washington Post.

Gerri is the author of "The Ultimate Credit Handbook" and a co-author of "Slash Your Debt - Save Money and Secure Your Future".