Late Payments on Your Credit Report

How late payments are reported

Creditors generally report a payment as late once it is at least 30 days past due, then 60, 90, 120 and beyond. A payment that is a few days late — but less than 30 — usually isn’t reported as late to the bureaus, though you may owe a fee.

How long they stay

Late payments can generally be reported for 7 years (FCRA § 605). Their effect on your score fades as they age, especially when newer history is positive.

When a late payment is an error

• You paid on time and have proof (bank records, confirmation numbers)
• The payment was delayed by the creditor’s own error, such as a misapplied payment
• You were in an approved deferment, forbearance or payment plan and met its terms
• The account was included in a bankruptcy and is reported late after the filing
• The account isn’t yours, or you were only an authorized user
• Different bureaus show different late months for the same account

Accurate late payments: the goodwill request

If a late payment is accurate, the law doesn’t require the creditor to remove it. Many people still write a respectful “goodwill” letter explaining a one-time hardship and asking the creditor to update the history. Creditors are not required to agree, but some do — especially for long-time customers with otherwise strong history.

Protect yourself going forward

Set up automatic minimum payments, calendar reminders and alerts. One on-time month at a time is how strong credit is rebuilt.

Sources: Fair Credit Reporting Act, 15 U.S.C. §§ 1681c(a), 1681e(b), 1681i, 1681s-2(a)(1)(F) (added by the CARES Act, Pub. L. 116-136, § 4021).