Removing Late Payments

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.

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