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Your payment history affects your credit score more than any other category. Learn how to fix your payment history and improve your credit score by using these five proven tricks. 

The Fair Isaacs Corporation, better known for their FICO credit score, say that your payment history is the most important indicator of creditworthiness and is worth as much as 35% of your total credit score

So it makes sense that if your payment history is bad, it is going to hurt your credit score. 

Left alone, a reported negative payment will stay in your credit file for seven years unless you actively work to have it removed or dilute the damage. 

In this article, we are going to discuss six proven methods you can use to fix your payment history by having negative payments removed or by adding positive payment history to dilute the late payments.

#1 – Fix Your Payment History With Credit Dispute Letters

In 2018, the Consumer Financial Protection Bureau reported that 77% of the complaints they receive each year are due to mistakes filed on a consumer’s credit report. 

The three major credit agencies, Equifax, Experian, and TransUnion, have reported that 30% of credit disputes result in the deletion of a negative record through a FTC study. 

Federal Section 609 gives you the right to dispute ANY credit record that appears to be inaccurate or if you are unsure of its accuracy. 

There are excellent odds that you may fix your payment history in your credit file by merely filing a few Section 609 Credit Dispute Letters. 

You can learn more about how to submit a Section 609 credit dispute letter.

#2 – Remove A Late Payment With A Goodwill Letter

A goodwill letter is used when you have a great history with a creditor, and for some extreme reason, you were late on a payment. 

These letters are sent to your lender, apologizing for you making a late payment and explaining why it happened and why it won’t ever again. 

At the end of the letter, you ask them to remove the late payment from your credit file at the credit agencies. 

There is no legal reason for your creditor to remove legitimately furnished information to the credit bureaus from your payment history, so these letters are hit and miss. 

In either case, they are easy to write and can’t hurt. 

Nothing ventured, nothing gained! 

If you are interested, you can read more in my article that covers Goodwill Letters with free samples, templates, and PDFs.

#3 – Only Settle Collections With A Pay For Delete Letter

While the new FICO 9 no longer considers collections paid off under $500 in calculating your credit score, almost no one is using the latest scoring method to determine creditworthiness. 

This means that if you have an active collection on your credit file, you will want to include a ‘pay-for-delete’ letter in your settlement. 

According to Lexington Law, a collection on your credit file can easily hurt your FICO score 110+ points! 

But it doesn’t have to! 

When you contact your collection company, you will want to indicate that you will be willing to settle the disputed collection if they agree to delete anything harmful they have filed with the credit bureaus. 

You can learn how pay for delete letters work and see free samples, templates, and PDFs in my credit repair article or by clicking below. 

#4 – Fix Payment History By Diluting Delinquencies

One way people who work in credit repair have found very useful to fix payment histories is to dilute the total number of payments in your record by adding new positive payment history. 

This can be done in one of two ways… but a combination of both is the fastest way to improve your credit score.

#5 – Add Multiple Authorized User Tradelines

Credit card companies allow their customers to add an authorized user to their card. 

When they add a person as an authorized user to their credit card, that person inherits the credit card payment history into their credit file. 

So, if you are added as an authorized user to a credit card with seven-plus years of positive payment history, that history is then added to your credit file and dilutes the negative payments. 

Think of it like a perfect payment history is a clear glass of water. 

Every time you make a late payment, a red drop of dye is placed into your cup of water. 

The clearer your water is, the better your payment history. 

If your cup has a bunch of drops of red dye, the only way to make the water clearer is to add more clean ‘payment’ water. 

That is what you are doing when you purchase multiple authorized user tradelines. 

You are adding clean, clear water to your payment history, which dilutes the statistical percentage of bad payments by adding more good ones. 

Each tradeline you purchase that is 7+ years old will add 84 positive payment records to your payment history (7 years X 12 months = 84 payments). 

You are adding clean, clear water to your payment history, which dilutes the statistical percentage of bad payments by adding more good ones. 

Each tradeline you purchase that is 7+ years old will add 84 positive payment records to your payment history (7 years X 12 months = 84 payments). 

A common strategy is to purchase three authorized user tradelines that are 7+ years old to add over 250 good payments OVERNIGHT and really dilute those late payments to drive up that FICO score. 

Tradeline Supply Company is the industry leader in selling professional tradelines with honestly the best prices you are going to find on the internet. 

BONUS TIP – Report Your Old Rental Payments

Do you rent? If you do, there is almost zero chance that your landlord is reporting those payments to the credit bureaus. 

This means you do not get any credit for making those payments on time each month unless you pay a rent reporting company to do it for you. 

It is super inexpensive to have your payment reported each month and well worth it because creditors will see another tradeline with payment made on time. 

The great thing about rent reporting is that the credit bureaus actually want this information and will allow the rent reporting company to report up to 24 months of previous payments. 

For a minimal sum of money, you can have 24 payments reported along with your ongoing monthly payment. 

Experian has a free rent reporting program they offer through Experian Boost

Obviously, this will help further dilute your payment history and poor, more clear water into that glass, like the authorized user tradelines. 

You can learn more about how rent reporting works in our top 10 rent reporting companies article.