How to Remove Late Payments from Your Credit Report in the UK?

Late payments can significantly impact your credit history and make securing a mortgage application more difficult in the UK. However, there are strategies to potentially remove late payments from your  credit file and restore your credit rating.

Understanding the Impact of Late Payments on Your Credit Score

A late credit card payment or missed loan instalment can remain on your credit record for up to six years, affecting your borrowing profile. The exact impact depends on factors like frequency, credit agreements, and the type of credit accounts involved.

Major credit bureaus, including Experian, Equifax, and TransUnion, record your payment history and report it to potential lenders. Missing monthly payments can lead to a credit score drop, making it harder to obtain future mortgage payments or auto loans.

The following article is updated as of Jan 29, 2025

Types of Late Payments and Their Effects

• 30 Days Late: May cause a minor dip in your credit profile.
• 60 Days Late: More significant decline, alerting credit card issuers.
• 90+ Days Late: Can result in a negative item, derogatory mark, or being reported to a collection agency.

Reviewing Your Credit Report for Late Payment Entries

To dispute or remove late payments, obtain your credit report provider records from Experian, Equifax, or TransUnion. Check for:

• Incorrect payment records
• Financial accounts with errors
• Negative marks or derogatory marks

If errors are found, you can file a credit dispute letter with the credit bureaus to dispute them.

Writing Goodwill Letters to Creditors

A goodwill request is a letter asking your lender for a gesture of goodwill to remove a negative mark due to unforeseen circumstances like a medical emergency or natural disaster. Goodwill adjustments work best if your track record of regular payments has been strong.

Negotiating Payment Arrangements with Lenders

If you’re struggling with financial behaviour, discuss hardship options with your lender. Some lenders offer payment arrangements, allowing you to catch up on bills on time before they are reported.

How Long Do Late Payments Stay on Your Credit Report?

A late payment can stay on your credit record for six years. However, the impact decreases over time as your credit habits improve.

Avoiding Future Late Payments

• Setting Up Automatic Payments: Ensure your minimum payment is met each month.
• Maintaining a Budget: Helps keep your financial future on track.
• Monitoring Your Credit: Regular credit report monitoring can help you spot issues early.

Seeking Professional Credit Repair Assistance

If you’re facing bad credit, consider reaching out to a credit repair organization, credit counseling services, or a debt advice charity for support.

Understanding Your Rights Under UK Financial Laws

The Data Protection Act 2018  ensures that you can report errors and dispute inaccuracies on your credit file.

FAQs

Can I remove accurate late payments from my credit report? 

Accurate late payments cannot typically be removed, but you can request a goodwill deletion or a creditor for forgiveness.

How can I improve my credit score after a late payment? 

Make future payments on time, maintain a low credit utilization ratio, and build a positive payment history.

Do late payments affect all types of loans equally? 

Yes, missing credit card payments, auto loan payments, or mortgage payments can all impact your credit score over time.

What is the best way to communicate with creditors? 

Reach out to your creditor in advance if you anticipate missing a payment to discuss additional options.

How can I track my credit score progress? 

Use services like Credit Karma, Credit Journey, and Experian Credit Report to monitor your score over time.

By following these strategies, you can rebuild a healthier credit profile and improve your chances of securing favourable mortgage terms in the UK.