How Long Does a Late Payment Stay on Your Credit Report?

There are some simple steps you can take to make sure you pay your bills on time.

Credit card companies have the right to notify the credit bureaus if a payment is more than 30 days late. A lower credit score is the result of a late payment appearing on a credit report.

There are a number of variables, including the length of time you've been late making a payment, that determine the severity of the consequences. But you can fix the problem and stop it from happening again with a few simple measures.

How long will a record of overdue payments appear on my credit report?
This needs to be said, and there's no soft way to put it, so here goes: Any missed payments that are reported to the credit bureaus will remain there for seven years.

What's even worse? A delinquent account, even if paid in full, can stay on a consumer's credit report for up to seven years from the date it was first reported.

There is, however, a silver lining. The damage to your credit score will fade with time.

What Effect Do Overdue Payments Have On Credit Ratings?
FICO scores base a whopping 35% of their evaluation on your payment history. A drop of 100 points or more can be seen on a credit report after just one late payment of more than 30 days. If your score is particularly high, you'll take a more significant hit.

Your standing will decrease as time goes on. Overdue payments of more than 60 days are treated much more harshly than those of more than 30 days.

The increased balance that is reported to the credit bureaus because of a missed payment can also increase your credit utilization ratio. Thirty percent of your FICO score is based on your credit utilization ratio, so if it rises above 30 percent, your score may drop.
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