Create an Overdue Payment Letter for NPOs Effortlessly

Overdue payment letter for NPOs

do you have late payments that are ruining your life one late payment can drop your credit score a massive 120 points so on today's episode we're going to cover all the different ways that you can attack a late payment how long it actually truly hurts your credit score and how to avoid them because we need to understand that this is 35 percent of our credit score and this is why it's super high impact so let's get into this video Welcome Back to the channel I'm Mike the credit guy I'm the owner and founder of Limitless culture we create the most advanced DIY credit management system in Industry our system allows you to take control of your credit creating custom Metro to attack letters every single round never using templates for only 55.99 a month link is always going to be in the description now let's get into this video the first line of defense against late payments is gonna be the simplest form it is called auto payment I know it sounds like really really Mike this is what you tell me no you have have no idea how many people do not set auto payment to their credit cards their auto loans their personal loans you need to set your auto payment up even for your business credit cards because your business credit if you get a late payment on a business credit card guess what they will report it to your personal credit it's in the terms and conditions so you need to make sure that you go into every single one of your credit cards and you set up auto payment to take a direct debit payment from your checking account make sure that you at least set up the minimum payment doesn't mean you have to set up you know full payment on one payment but you need to have at least the minimum payment made every single month on time because if you don't you're going to face a very big problem because late payments are an absolute nightmare there are three different ways to attack a late payment but it's also very important to understand what is the lasting effect on of a late payment and how long it's going to affect your credit score make sure that you watch this to the end so you can exactly know how long a late payment is going to affect your credit score in case you cannot reverse it because as I said earlier they are absolutely a nightmare to deal with so let's jump into the top three ways that you can attack a late payment the number one easiest way to attack a late payment is going to be sending a factual dispute stating this item is not reporting accurately and I want you to update the payment status to on time and paid as agreed because it is not accurate or complete please update this immediately see what we did there we're asking them to update the payment to the on time and paid as agreed because that is what is going to help your credit score rehab and go back to where it was at previously hopefully it was in a better position and not bad so that is the number one easiest way to attack a late payment Senate certified mail include a copy of your driver's license utility bill and a bank statement and a copyright social security card because you do not want them to give you any nonsense stall tactic letter and then you sign your letter only send this to the credit bureaus never ever dispute late payments directly with the actual lender or creditor you want to wait till the end to attack them but you're not actually going to attack them so stick to the end because that's that's going to be position number three and how we attack late payments serious Pro tip here please pay attention never ever send the same letter twice to the credit bureaus because they can deem it frivolous and they do not have to investigate it on November 31st of 2021 regulation F came into play by the cfpb and it clearly states in regulation F that you cannot send a duplicative dispute meaning the same dispute the same letter twice if you do the credit bureaus or the creditors can deem it frivolous and they do not have to investigate it so it's very important that you always change up the verbiage in your letters and you never send the same letter twice last part is the most important my number two favorite way to attack a late payment is going to be Metro to compliance attacking now Metro to a compliance attacking looks at how the item is reporting per the standards of Metro 2. everything on your credit report is structured in metro to compliance reporting so you have to have a system that knows exactly all the coding to Metro to reporting because if it doesn't meet the standards of Metro 2 reporting guess what it has to be deleted or you want it to State I want this to be updated to paid as agreed and on time because reversing that negative Juju that happened and it had that negative impact and then adding an on-time payment is going to have very good impact on your credit profile depending on how your credit profile is structured because if you got a bunch of other negative items it may not have as good of an impact but it's going to have some type of positive impact when you attack it using metro 2. now our DIY system does this for people with delayed payments because not everyone really understands how Metro 2 coding works and how to properly structure a letter so our system will create that custom letter and then email it you print it yeah yeah you know the spill okay but Metro 2 attacking is very powerful now remember this isn't just gonna happen in one round a lot of people want that you know that instantaneous response and for it to instantaneously work no you're gonna have to potentially send four to six rounds for one late payment I know that sounds insane but this is why it's very difficult to reverse late payments my number three most favorite way to attack a late payment is going to be your last option on the table do not do this unless you have already tried both the previous ways and it did not work in three to six rounds six rounds is a long time but understanding that you need to take action and you need to dispute it first before you move into the Goodwill letter because if you send a Goodwill letter the first thing you do is you send a Goodwill letter guess what you just admitted to the late payment now you're gonna go back and try to dispute it that makes no sense now they have a letter that is proof of you stating that this item was late can you please forgive me this is why you want to wait until after you dispute it to send the Goodwill letter I often see this way too many times when people have late payments I ask them have you disputed this like yeah yeah I did I sent the Goodwill letter I said well you're done there's no point in hiring us because you already admitted to the late payment now you wanted to disputed it it doesn't work like that in order for this to work never ever send a Goodwill letter through mail like standard protocol mail no this is not how you do that you need to go to ceoemail.com again the website is ceoemail.com it is 100 free do not click on the ads you're going to see a bunch of ads on that website and you're going to look for the email address of the CEO for whatever credit card company you have the late payment with or the auto lender the mortgage lender whoever may be you're looking for their email address so you can type in in USA or you know um Honda Financial in USA look for their email address and you're going to type up a very simple email and you're going to send it through email it's just that simple you're going to stay in that letter that you're gonna you're gonna email to them hey Mr C of Honda Financial I greatly appreciate your time and this attention but I previously went through a financial hardship and unfortunately I I was a victim of missing a payment out of my oversight now can you please help me reverse this to on time I've been a loyal customer for 15 years and I would greatly appreciate your help in this because I absolutely love and you guys have done nothing wrong I'm just asking for your forgiveness and hoping that you will actually reverse this late payment to being on time so you can help me with bettering my financial future now all you got to do is hit the send button and then you're gonna wait somebody's going to respond to you or the actual lender is going to send you a direct letter in the mail that's the final option that you have when you're attacking any types of late payments but remember only use the Goodwill letter as a final option now remember I want you to really understand this there's no easier fast path to attacking late payments or attacking anything on your credit reports you are in this for the long game this is not a Sprint it is a marathon now if you cannot get a late payment off of your credit report how does it affect your credit score and how long will it last is the real question so we're gonna put it up on the screen here so you can see this is directly from FICO you know the people that make up the credit score that lenders use those people a late payment is going to have a high impact the most impact in the first 12 months as you can see on the chart as you progress it affects your score completely for a full six years so when people tell you ah man your late payment from you know three years ago is not that important well this chart from FICO clearly shows us that's not true it has impact for a full six years after seven years it does not matter it's not affecting your score anymore and it should not longer be visible so that's important to understand why you never want to get a late payment because it's super high impact and it is 35 of your credit score so understanding how it impacts you and understanding that this is not going to be easy anybody that says late payments are easy to delete or remove they're full of it and I want to leave you on one last Pro tip do not listen to any idiots out there that tell you well just delete the whole account think about it like this if your score is going to Rebound in six to seven years why would you want to delete the entire account that's going to have a very damaging effect to your credit score because if you're looking at three or four late payments an entire life of a 10-year account and then you rip off 10 years of on-time payment history you have just ruined your credit I'm willing to bet money on that so all these gurus and people that say they know credit and they tell you to delete the account they're wrong unfortunately so stop listening to that nonsense and go after the late payments themselves I want to leave you on one last note here if you're someone that has real serious issues with late payments where you have habitually created so many late payments on your credit reports this is not for you I'm talking about the people that have more than six late payments on their credit reports what are you trying to reverse here do you really think that A lender or creditor or the credit bureaus is going to believe what you're stating in your letter no they're not because you have habitually shown that you cannot pay on time now if you're someone that has great credit and it just slipped by you you got a couple of late payments here and there yeah of course you have a higher chance but late payments already have a less than 50 percent chance of not being reversed so when you have way too many of them what you need to do is get yourself in a better position with your finances and get your finances on track making sure that you never get any late payments stop overextending yourself and understand what you're doing to your credit profile you're destroying it and stop getting late payments and start building a better financial future so you can move forward and move past that six year mark and then your score will start to rebound but understanding that this is not going to be an easy pass for you there's no easy or fast way to reverse late payments and sometimes it just isn't going to work so I hope you enjoyed the video we covered exactly all the different ways that you can attack late payment if there's anything specific you want me to talk about drop it in the comment section drop your experience in there telling people all the different ways that you possibly reverse your late payments so everyone can help each other because it's all about you our community we cannot do a without you make sure to drop some emojis in there so we can get this video going but don't forget make sure that you watch the next two videos because they are recommended by YouTube and make sure that you subscribe to increase your credit score foreign [Music]