If you couldn’t afford a purchase you wanted to make all at once, you may have taken advantage of Affirm, a financing option offered by thousands of retailers. Affirm offers a variety of repayment options, some of which affect your credit and a couple that don’t.
No matter your payment arrangements, though, if you default on your Affirm payments, it could affect your credit score and credit history. Here’s how to remove an Affirm late payment or charge off from your credit report.
Does Affirm Affect Your Credit Score?
According to Affirm, there are certain types of loans that can affect your credit score. For example, if the loan you were approved for is 0% interest and four biweekly payments or you were given only 1 option of a three month payment term at 0% interest.
Keep in mind, Affirm will report late payments to the credit bureaus (specifically Experian), so they will show up on your credit report. In other words, an Affirm late payment will negatively impact your credit score.
Steps to Remove an Affirm Late Payment
Luckily, even though Affirm does report late payments on your credit report, there are several methods you can use to remove something from your credit report. These methods are similar to removing late payments from credit cards and other loans.
1. Make Sure It’s Legit
Mistakes happen, so if you find a late Affirm payment on your credit report, make sure it’s legit. Did you really pay it late? Check your records.
If you have proof that you made the payment on time, dispute the mark with the credit bureaus. Affirm reports to Experian, so write to Experian and explain the mistake, providing any proof you have of it so they can remove it from your credit report.
Experian has 30 days from the date you send the request to look into it and respond. If they find you are correct, they’ll remove the late payment from your credit report.
2. Ask for a Goodwill Deletion
If you did make your payment late, you may ask Affirm for a goodwill deletion. They aren’t required to offer this or accept your request, so prepare your ‘speech’ before talking to them. This option works best if you have a good payment history with them and simply made a mistake.
If you prove you’re normally a good customer, especially if you’ve had other credit lines from them before with no problem, they may remove the late remark after you bring the account current. This will likely only be a one-time deal so be careful moving forward.
3. Prove you had a Hardship
If you made your payment late because of a true hardship, you may get Affirm to reverse the late payment on your credit report.
Before you use this route, make sure you truly had a hardship and aren’t making it up. You must prove the hardship with as many details as possible. Again, Affirm isn’t required to honor your request, so be courteous and provide as many details as possible.
Typically, major emergencies or unique situations qualify you for a hardship, but again, it’s on a case-by-case basis.
Dealing with a Late Payment on your Credit Report
If you aren’t successful in getting your Affirm late payment removed from your credit report, it could sit there for 7 years, but it won’t affect you forever.
Moving forward, adopt good payment habits and ensure you don’t get in over your head again. As time passes, the late payment won’t affect your score as much even though it will sit on your credit report.
In the meantime, try these habits:
- Pay all future bills on time. One late payment may not hurt your credit score terribly, but if you have any more after that, your credit score will take quite a hit. If you know you can’t make your payments, get in touch with your creditors right away to work out a plan.
- Don’t take out credit you can’t afford. It’s tempting to take any new credit that comes your way, but this is how you get in over your head. If you know you can’t afford a purchase at checkout, don’t buy it. Instead, save up for it and pay cash rather than splitting the payment up into multiple payments that you can’t afford.
- Pay off all credit cards in full. Your payment history is the largest part of your credit score, but your credit utilization is the next largest. Keep your outstanding credit at less than 30% of your balance to avoid hurting your credit score further.
4. Have a Professional Remove the Collection
Lastly, if you’re the type of person who would rather have a professional handle it and just be done with the whole thing, I suggest you check out Lexington Law Credit Repair. They’ll take care of you, and honestly they usually get negative items removed quicker than if you try to do it yourself. Give them a call at 1-844-331-6062 or Check out our review of their service.