Impact of Late Payments and High Credit Utilization on Credit Scores

By: Loan Advisor0 comments

Late payments and high credit utilization can have a negative impact on your credit score. Late payments are reported to credit bureaus when you miss a payment, and they can stay on your credit report for up to seven years. High credit utilization, which is when you use a large portion of your available credit, can also lower your credit score because it can indicate to lenders that you are overextending yourself financially. To maintain a good credit score, it’s important to make all of your payments on time and to keep your credit utilization low.

How To Dispute And Correct Errors On Your Credit Report

To dispute and correct errors on your credit report, you can take the following steps:

Obtain a copy of your credit report: You can get a free copy of your credit report from each of the three major credit reporting bureaus (Experian, TransUnion, and Equifax) once per year at

Review your credit report for errors: Look for any inaccurate information, such as incorrect personal details, accounts that don’t belong to you, or late payments that were actually on time.

Gather documentation: Collect any documentation that supports your dispute, such as a copy of a bill that shows a payment was made on time or a letter from a creditor that confirms an account was closed.

Submit your dispute: You can submit your dispute online, by mail, or by phone. Be sure to provide the credit bureau with your personal information, the account in question and the reason for your dispute.

Wait for a response: The credit bureau will investigate your dispute and respond within 30 to 45 days. If the credit bureau finds that the information is incorrect, it will be removed from your credit report.

Follow up: After the credit bureau responds to your dispute, review your credit report again to ensure that the error has been corrected. It is important to note that if you are disputing an account that is accurate but you believe has inaccurate payment history on your credit report, you should contact the creditor or lender directly and ask them to correct the information they have submitted to the credit bureau.

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