Most people these days are familiar with credit cards, loans, and the credit/CIBIL report. Why credit report is important? Your credit report summarises your credit history over the previous 36 months, suggesting your capacity to repay lenders and financial organizations, who frequently consult your credit report before approving a loan. Making sure your credit report is correct, which also helps assure your credit score, can help you obtain personal and other loans approved faster. It's critical to remember to never miss an EMI payment and to make them on time to prevent a late payment record on your credit card report.
How late payments record on credit reports could impact your credit facility:
- Your credit history is impacted by late payment records on your credit report, and you're more likely to be denied credit from most lenders.
- Despite your history of late payments, certain lenders may issue you a loan; however, the interest rate on these loans may be greater than usual.
- Aside from that, a 30-day delay has been proven in some studies to lower your credit score by at least 100 points.
Things you can do to remove your late payments record from your credit report:
Check your credit report and look for late payments that are reported inaccurately. Some payments might be reported on a late date or some payments might not appear on your report.
If your found inaccuracies, file a dispute stating that your credit report has an error on late payments and that it should be removed. Be sure to send the letter by certified mail if you send it via mail.
If you have good payments history but made a late payment due to emergencies, your creditor might grand your goodwill. You need to send a letter and request that they forgive your late payment.
Make partial payments
If your lender or bank has refused to agree to a goodwill adjustment, you can request that they remove the late payments statement from your credit record by making partial payments or part-prepayments against your remaining debt.