Does a One Day Late Payment Affect Credit Score?

If you’re a busy person, you may have forgotten to make your credit card payment, car payment, home payment, or student loan payment. So, does a one day late payment affect your credit score? We will discuss the answer to this question in much detail below.

Does a One Day Late Payment Affect Your Credit Score?

No, in almost all cases, a payment that is one day late will not affect your credit score. This is so because lenders and creditors usually only report late payments that are 30 or more days past due. So, if your payment was due on January 1st, 2021 and you made your payment on January 2nd, 2021, your late payment will not show up on your credit report. However, if you make a late payment, your creditor or lender may charge you a late fee for not making the payment on time.

So, as long as you pay within 30 days of missing your payment, your credit score should be fine. However, if you’re more than 30 days late, a late payment mark will be added to your credit report, causing significant damage to your credit score. A single late payment can drop your credit score by 50 to 100 points. So, if you’re only one day late on making a payment, pay it as quickly as possible to keep it from affecting your credit score.

That said, if you make a one-day late payment, in some circumstances, you will not even be charged a late fee. This is so because some lenders and creditors excuse payments that are only a few days late. To determine your grace period, you should consult your own credit card or loan agreement.

If you’re more than a few days late, your card issuer or loan provider may charge you a late fee that ranges from $25 to $40. The late fee is different from one lender or creditor to another. That said, if you were charged a late fee, this does not mean that a late payment will be reported to the credit reporting bureaus. Remember, only payments that are more than 30 days late are usually reported to the credit reporting bureaus.

If you’re more than 30 days late on making a payment, a late payment mark will be added to your credit card. The late payment mark will remain on your credit report for 7 years from the date that you missed your payment. After 7 years, the mark will be automatically removed from your credit report.

That said, while the late payment mark appears on your credit report, it will continue to drag down your credit score until it’s removed. That said, as time passes, its impact on your credit score will begin to lessen until it’s eventually removed.

Late Payment Fee

As mentioned previously, although a one day late payment will not appear on your credit report, your creditor or lender may charge you a late fee that usually ranges from $25 to $40 for not making the payment on time. However, the fact that you’re charged a late fee does not mean that the late payment will be reported to the credit reporting bureaus.

Interest Rate

In addition to being charged a late fee, if you make a late payment, your card issuer or loan provider may raise the interest rate on the balance that you owe. For example, if you’re late on making a credit card payment, your card issuer may switch you to a penalty APR rate.

For example, your regular APR may be set at 15.99% and the penalty APR may be set at 24.99%, if your late on making a payment, you could be charged this penalty APR for several months until you’ve established an on-time payment history.

So, although you can get away with making a one day late payment, you should consider these other consequences for making a late payment. You should always make, at the least, your minimum payment on time to avoid the negative consequences that follow from making a late payment.

When Are Late Payments Usually Reported to the Credit Reporting Bureaus?

Late payments are usually reported once you’re more than 30 days late on making a payment. For example, if your payment was due on July 1st, 2021 and you did not make your payment until August 2nd, 2021 after the billing cycle has expired, your account will be reported as 30 days late to the credit reporting bureaus. If you don’t make your payment for another 30 days, your account will be reported as 60 days late.

Once your account is reported as late, this derogatory mark will remain on your credit report for seven years from the date that you first became late. After the 7 year period expires, the late payment mark will automatically be removed from your credit report.

However, as long as the late payment mark remains on your credit report, it will continue to drag down your credit score until it’s removed. However, as the late payment mark ages, it’s impact on your credit score will begin to lessen.

That said, if you keep racking up missed payment marks, you will destroy your credit much quicker than you built it. So, try your best to make payments to avoid these marks from being added to your credit report.

What Should You Do If You’re One Day Late On Making a Payment?

If you have missed your payment and you’re only one day late on making it, you should immediately login into your online banking portal and submit the payment. By doing so, you will avoid any negative impact to your credit. If you don’t have access to online banking, call your lender or creditor and ask them to schedule your payment.

In the event that you don’t have money to make the payment, you should call your creditor or lender and ask them about your options for repaying the money that you owe them.

Also, if you incurred a late fee for submitting the payment late, you should call your creditor and lender and ask them about waiving the late fee that you incurred. Most creditors and lenders will be more than happy to waive the late fee for you, especially if you had been making your payments on time in the past.

If you want to avoid making your payment on day late, you should sign up for automatic bill pay, this will insure that your minimum payment is made on time every month.

How Do I Know If There is a Late Payment On My Credit Report That Affects My Credit Score?

You can find out if there is a late payment by check your credit report and looking at your account status. If there is a late payment reported, you will find under the account status tab. For example, if you were 30 days or more late on making your payment, you will find a 30 day late mark on your account status. If such a mark is added to your credit report, it will remain on your credit report for 7 days.

There are a number of free services that will allow you to monitor your credit report and credit score for free. Credit Karma, for example, allows you to check a copy of your credit report on a daily basis. All you have to do is sign up for a free account and you will be allowed to check your credit report as often as you would like.

Will Making a Partial Payment Keep Your Account From Being Reported As Late?

Yes, making anything less than the minimum payment on a credit card or making a payment less than the amount due on your loan will result in your payment being reported as late on your credit report. Also, you probably will incur a late payment fee for failing to make the required payment. If you can only make a partial payment, you should contact your lender or creditor and ask them about your payment options.

How to Avoid Making Late Payments

Many banks and lenders offer you the ability of notifications that will notify when it’s time to make a payment. If you’re like most of us and you have a busy life, enabling the notifications will help you make on time payments.

Also, almost all lenders and creditors give you the ability to set up automatic payments where you don’t have to worry about logging into your account to make a payment. Instead, the funds are automatically debited from your account as your payment becomes due.

If you’re unable to make your payments because your in financial trouble because of the pandemic or otherwise, you should contact your lender or creditor about setting up a payment plan or deferring the payments on your account. Many lenders and creditors will be working with you, especially during these difficult times.

Credit Score Planet Frequently Asked Questions

1. What happens if your credit card payment is one day late?

If your payment is one day late, you may incur a late fee from your credit card issuer. However, if you’re only one date late, your late payment will not be reported to the credit reporting bureaus so it will have no effect on your credit score.

2. How much does one late payment affect your credit score?

A late payment that’s 30+ days late can cause significant damage to your credit. If you have good credit, a single late payment can drop your credit score by up to 100 points. However, if you’re less than 30 days late, a late payment will not affect your credit score because it will not be reported until the billing cycle has lapsed.

3. Will a 2-day late payment affect your credit score?

No, a two day late payment should have no effect on your credit score.

4. Do credit card companies report a 1-day late payment?

No, credit card companies do not report a 1 day late payment. Late payments are only reported if you’re 30 days or more late on making the payment.

5. Can a lender remove a late payment from your credit report?

You can only have a late payment removed from your credit report is there was reported by mistake or the reported information is inaccurate. It is difficult to remove a late payment that’s valid from your credit report.