How to Write a Late Payment Dispute Letter

When applying for a mortgage, auto loan or other credit card, lenders will look at your credit history. One missed payment, even if it was just one day late, can lower your score and make it difficult to get financing. Fortunately, there are ways to dispute incorrect information on your report with the credit bureaus. One way is to write a late payment dispute letter, also known as a goodwill letter or hardship letter.

To write a late payment dispute letter, you need to know what to include and how to present the information. Start by obtaining copies of your credit reports from the three major credit bureaus, Equifax, Experian and TransUnion. Read them thoroughly, highlighting the inaccuracies. Gather any documentation that proves the information should be removed, such as bank statements, receipts and correspondence with the creditor.

In your letter, identify each piece of inaccurate information and explain the facts of the situation. Then ask that the business supply to the credit bureaus take action to have the incorrect information corrected or removed. You should send your letter via certified mail with "return receipt requested," so you can document that the company received it. Make copies of all the documents you include and keep originals for your files.

In your letter, take responsibility for the late payment and explain why it happened. If possible, offer to do anything you can to ensure it doesn't happen again, such as setting up a system for paying early or signing up for automatic payments.