How to Correct a Late Payment Record on your Credit Report?

Your credit report sums up your credit history of the past 36 months, indicating your ability to repay lenders and financial institutions, who often refer to your credit report before sanctioning a loan. Making sure your credit report is accurate, which also helps ensure your credit score is accurate, can help you get faster approval on a personal loan and other loans.

With late payment records on your credit report, your credit score is impacted and you are likely to face credit rejection from most lenders. Some lenders may offer you loans despite the late payment record; however, the interest on these loans may be higher than normal. Apart from this, a few studies have also shown that a 30-day delay can bring your credit score down by almost 100 points. While it is important to remember to never miss your EMIs and pay them on time, here is what you can do about late payment records that are already on your credit report.

What to do if you have not made a late payment?

One of the main reasons why checking your credit report regularly is essential is to ensure that your credit report is free of any discrepancies. To perform a free CIBIL check, simply visit the Bajaj Finserv website and enter your basic details to check your CIBIL score for free. In some cases, late payment records are issued due to inaccurate information. In order to deal with such a situation, you first need to verify any such discrepancy in your credit history.

You can do this by checking your credit report from CIBIL or other agencies operating in India, including Experian, Equifax, and High Mark. Once you have confirmed that there is a late payment on your credit report, you can raise a dispute. Apart from raising a dispute to the credit bureau, you can also contact your lender for precise details.

What to do if you have made a late payment?

Here is what you can do if you have a late payment and a late payment remark on your credit report:

1. Verify the accuracy: First, ensure the late payment information is accurate. You can obtain free credit reports from each credit bureau (Equifax, Experian, CIBIL) once a year.
2. Act quickly if inaccurate: If the information is wrong, dispute it directly with the credit bureau who reported it along with the supported documents.
3. Contact the creditor (if accurate): If the late payment is accurate, be proactive. Contact your creditor and explain the situation. Enquire about any options for goodwill adjustments, which might involve removing the late payment remark from your statement. However, this still does not guarantee that credit Bureau will remove the remark from the credit report.
4. Maintain on-time payments going forward: The most important step is to prioritise on-time payments for all your credit obligations moving forward. This demonstrates responsible credit behaviour and helps improve your credit score over time.
5. Consider credit repair services (optional): For complex situations, credit repair services can assist with disputing errors and strategising to improve your credit score. However, these services typically come with a fee.