Payment history is the single biggest factor in your credit score. Even one late payment can cost you points, and several can keep you from getting approved. Here is what you can do.
When Is a Payment Reported Late?
Creditors generally do not report a payment late to the credit bureaus until it is at least 30 days past due. You may still owe a late fee before then, but it will not show on your report. After 30 days, lates are usually reported in steps: 30, 60, 90, and 120 or more days late. The later the payment, the bigger the impact.
How Long Do Late Payments Stay?
A late payment can be reported for up to seven years. Its impact fades over time, especially as you build a record of on-time payments.
Option 1: Dispute Inaccurate Late Payments
If a late payment is wrong, you can dispute it. Common errors include:
- A payment reported late that was made on time
- A late reported during an approved forbearance or deferment
- The wrong number of days late
- Late payments on an account that is not yours
- Different late history on different bureaus for the same account
File disputes with each bureau that shows the error and include proof, like bank statements or a forbearance agreement.
Option 2: Ask for a Goodwill Adjustment
If the late payment is accurate, you can write to the creditor and ask them to remove it as a courtesy. This works best when you have a long history of on-time payments and a real reason for the missed payment, such as a medical emergency or job loss. Creditors do not have to agree, but many will consider it.
Option 3: Prevent Future Lates
- Set up autopay for at least the minimum payment
- Turn on due date reminders
- If you know you will miss a payment, call the creditor before it hits 30 days late
Get Help With Late Payments
We review payment history across all three bureaus and dispute every late that is inaccurate or cannot be verified. See our plans or book a free 30-minute credit review.