A creditor reporting late payments on your record can significantly impact your credit score and, in turn, your ability to get credit in the future. Unfortunately, this may happen even when you pay on time.
Here is what to know about inaccurate late payments on your creditor report:
Why does it happen?
A creditor reporting late payments despite you paying on time may occur due to an honest error. There may be a delay between when you make a payment and when it registers on the creditor’s system. If this takes so long that your payment reflects after your due date, a late payment may potentially be reported on your account
Further, a creditor’s system may have technical issues that result in a misrecording of payments, such as reporting late payments. Even a misunderstanding regarding the due date may also result in a late payment report even though you paid on time. Always double-check the due date with a creditor, especially if you will be mailing payments.
Typically, your creditor won’t report the late payment to credit bureaus until 30 days after the past due date. If the aforementioned mistakes go beyond this period, a late payment may appear on your credit report, yet you paid on time.
What can you do?
If, upon reviewing your credit report, you notice an incorrect late payment, contact your creditor immediately to dispute the error. Your creditor will assess the matter and may ask you to submit documentation to verify payment. If they agree the late payment was an error after their investigation, they will contact credit bureaus to remove the inaccurate information from your credit report.
If your creditor makes a credit reporting error, obtain adequate information sooner to know the best way to approach the issue to protect your credit score.
