You’ve ordered a copy of your credit report and you’ve found several late payments listed under your credit history. These late payments will pull down your credit score. As a result, you may find it difficult to get approved when applying for loans or credit cards. Since creditors often prefer clients with good to excellent credit rating, those with bad credit are often denied or rejected. What can you do when you’re in this situation? Is there a way to wipe out late payment history?

Let’s discuss ways on how to wipe out late payment history.

Addressing the Root of the Problem

In order to find the most effective solution to wipe out late payment history, take a look at the cause of the problem. Check your lifestyle and spending habits. Ask yourself the following questions:

• What had caused late payments to your creditors?
• Have you been spending more than what your income allows?
• Have you been charging too many purchases to your credit card?
• Are you having difficulty paying off your credit card balances in full each month?
• Are you submitting only minimum payments to your credit card company?
• Do you frequently carry over your balances from month to month?

Many people with bad credit history may not know it but submitting late credit card payments can easily put you in a serious debt situation. Not only will you be charged with high rates, you can also get penalized with late fees. In fact, your credit card company can increase your interest rates without notice just because of a single late payment.

So how do you wipe out your late payment history and regain good credit standing?

First of all, make it your goal to pay off all your existing balances. It’s practical to start paying off your high-interest credit cards first as these incur expensive charges. You can also use a zero interest balance transfer credit card to help you pay off your credit card debt minus the interest. Some zero interest balance transfer cards give six months or 12 months of introductory period and you can take advantage of this time to pay off credit card debts easily.

Of course, you also need to make some adjustments on your spending or follow a strict budget plan so you can focus on paying off your debts as quickly as you can. More importantly, control the use of your credit cards to avoid adding new charges to your account.

Pay off all your debts on time. In case you won’t be able to submit your payment on the due date, contact your creditor in advance to explain your situation. Most creditors are willing to extend your due date for another 30 days without reporting it as a late payment. Lastly, check your credit report after every six months to make sure that all information contained on it is correct and accurate.