I will divide the potential negatives on a credit into 4 different types.

1        30 days lates, 60 day lates….etc

2        Collection or charged off accounts

3        Third party collection accounts

4        Judgments etc

Today I will talk about late payments. Let us start with the 30 day lates.

The basic idea is to request the creditor to remove the 30 day late, almost in an apologetic tone. “I made a mistake and it will not happen again”……sort of thing.  Most likely a misinformed rep will tell you that they have to report for 7 years or so. Strictly speaking that is NOT true.  So if it does not work over the phone the first time around, call again and write again.

Ideally, if you have had an account with the company for the past couple of years and this is just a random late, it is most likely to be removed. The further away you are from that scenario the harder it will be to get the late removed. Please understand, and this point is a basic credit repair lesson, if it does not work ones try again after some time. Not everything will work, all the time. In the case of a 30 day late, write a nice letter explaining to them that it was a minor mistake and it will not happen again. Yes, a NICE letter might do the work. Companies want to keep a good customer happy. In the next couple of weeks  I might post some sample letters.

60 to 120 day late:

Again if you had an account that was basically paid up completely with some 60-120 day lates than it would be relatively easy to remove the lates. The further away you are from this scenario the harder it will get but again that should not deter you from trying. Remember the opportunity cost of your time. At the end only you know if it is worth pursuing. Having said that, I have seen some great cases of credit repair. I am convinced that you should try to remove all of the negatives from your credit.

In the case of 60 day lates your communication (letters or phone conversation) should be with an air of cool assurance. You should inquire about the nature of the lates. The company should feel that you know what you are talking about and would be willing to take things further if the need arises. Hence you might want to reference FCBA. Remember the account is NOT yet in collections and so you can not refer to FDCPA (review my previous articles for definitions of FCBA etc).  If you are on the phone with them have all your information on a piece of paper infront of you, giving them an  impression that you are some one that is prepared.

The way I see it, if you get the gist of personal credit repair you can basically make your own credit repair plan.

One very important point is that you only inquire about the details of the  lates. At no point do you agree or disagree with the 60-120 lates. That is one of the differences of this and the “30 day late” removal approach.

It is very difficult for me to go into minor details in an article format but that is basically what the approach is about. Do not come across as apologetic in your inquiry of a “60-120 day late” and of course save any and all correspondence. I might post some sample letters on the website and that might give you a better understanding.

Next article….collection accounts.