When Do Late Payments Get Reported to the Credit Bureaus?

Maintaining a good credit score is essential if you live in the United States. If you have a credit card, auto loan, or home loan, you and you made your patement late, you might be wondering when do late payments get reported to the credit reporting bureaus? We will answer this question in much detail below.

When Do Late Payments Get Reported to the Credit Bureaus?

Late payments get reported to the credit reporting bureaus only if you’re payment is 30 or more days past due. Once your account is past due for 30 or more days, you will not know when the payment is reported as paste due because different creditors and lenders report to the credit reporting bureaus at different times. As such, there is no definite date when your late payment will be reported to the credit reporting bureaus. But a good rule of thumb is to wait 60 days for the late payment to be reported to the credit bureaus.

Impact of Late Payments on Your Credit Score

You should avoid making a payment that’s more than 30 days late at all costs. A single late payment can lower your credit score by more than 150 points. The better your credit score, the bigger the drop you will experience. If you already have poor credit, a late payment will still lower your credit score but not more than someone with a good or excellent credit score.

That said, if you’re 30 days late on your payment, you should try to make the payment even though you’re late. This is so because if you become 60 days, 90 days, or 120 days late, these negative marks will be added to your credit report. The more late you become on making your payments, the more damage you will cause to your credit.

Late payments will remain on your credit report for 7 years from the date you first became delinquent on making payments on your account. For example, if you missed a payment on January 1st, 2022, the late payment will remain on your credit report until January 1st, 2029.

After 7 years, late payments will automatically be removed from your credit report. Having said that, as the late payment ages, its impact on your credit score will lessen until it’s ultimately removed from your credit report.

Now that you know that late payments are only reported once a person is 30 or more days late if you’re less than 30 days late, you should try to make your payment to save your credit. For example, if you’re only 1 to 29 days late, you still have an opportunity to make your payment before any damage occurs to your credit.

What Happens If You Make a Late Payment?

If you make a late payment on your credit card, personal loan, car loan, or home loan, a negative mark will be added to your credit report after the lender reports that you’ve been 30 or more days late on making your payment.

In addition to having a negative mark added to your credit report, your lender will most likley charge you late payments fees for every payment that you miss. Additionally, if your late on making a credit card payment, a penalty APR may kick in raising the interest that you pay on the amount you owe them.

If you have money and are able to pay your loan or credit card, you should pay them as nonpayment comes with many consequences that will make paying back the money that you owe more difficult and more expensive.

If you’re a month or two late, you should ask your card issuer or lender to waive the late fees in exchange for you making the account current. Many lenders will be willing to work with you because it’s better for them if you continue to make payments on your account.

In the event that you’re not able to make your account current, you should ask your lender about the options that you have instead of just ignoring the past due amount and racking up a ton of late fees and additional charges. Some lenders may be able to push a payment or two back or even place you on a payment plan where are pay a lesser amount that’s due.

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

A payment that is reported as late will remain on your credit report for 7 years from the date you missed the payment. After 7 years, the payment will be automatically removed from your credit report. In the event that your late payment is not removed within the 7 year period, you can file a dispute with the credit bureau reporting the late payment to have it removed from your credit report.

Disputing Incorrect Information On Your Credit Report

If a late payment shows up on your credit report even though you were never late in making payments on your account, you should either contact the lender reporting the incorrect information or you can file a dispute with the credit reporting bureau that’s reporting the incorrect information.

For example, if you have a late payment showing up on your Transunion Credit Report, you should dispute the late payment with Transunion to have it removed from your credit report.

Also, if the account is reported late with the two remaining credit reporting bureaus, you should file a dispute with each of them, as well. Filing a dispute with only one bureau will correct only that credit report. You must file a dispute with each of the credit reporting bureaus reporting the incorrect information.

After you have filed a dispute, the credit reporting bureaus will conduct an investigation to determine whether the information is indeed incorrect. If the investigation reveals that you are right and the info is incorrect, they will remove it from your credit reporting bureaus. It usually takes the credit reporting bureaus a maximum of 30 days to conduct the investigation, but usually, the credit bureaus finish much more soon than that.

What Should You Do If Your Payment is Late?

If you’re under 29 days late on making your payment, you should try to make the payment if you can. This is so because if your payment is under 30 days late, paying it will prevent your creditor and lender from reporting the payment as late. Payments are only reported as late when they are 30 days or more late.

Also, if you’re more than 30 days late, you should still try to make your payment because if your payment is 60 days, 90 days, or 120 days late a 60, 90, or 120-day late mark will be added to your credit report reflecting how long you’ve been late on making your payment. The longer that you leave an account unpaid, the more damage you’ll be doing to your credit.

Credit Score Planet Frequently Asked Questions (FAQs)

1. How are late payments reported to the credit reporting bureaus?

Late payment are reported to the credit bureaus by your lender or creditor. For example, if you have a credit card with Wells Fargo and you’re 31 days late on making your payment, Wells Fargo will report your late payment to the credit reporting bureaus according to their own reporting schedule.

2. How long will a 30-day late payment affect your credit score?

A 30-day late payment will affect your credit score for 7 years from the date you were late. That said, the impact a late payment has on your credit report will lessen as the late payment mark ages.

3. How much can a late payment lower your credit score?

A single 30 day late payment can lower your credit score by as much as 180 points. So, it’s best to avoid one if you can.

4. Does a 3 or 5-day late payment affect your credit?

No, a payment that is less than 30 days late will not affect your credit score because late payments are only reported as late if it is 30 days or more late.

5. Will a 1-day late payment affect your credit score?

No, a 1 day late payment will not affect your credit score because a 1 day late are not reported. Only payments that are 30 or more days late are reported to the credit reporting bureaus.