How do late payments affect credit scores?

Edited by:Liza Carrasquillo, Editor, Credit Cards
• Updated •5 min read • Leer en español
Young woman sitting in front of a glowing laptop and learning about how late payments can affect credit scoresImage: Young woman sitting in front of a glowing laptop and learning about how late payments can affect credit scores

In a Nutshell

Payments that are a few days late don’t typically affect your credit scores, but payments that are more than 30 days late can lower your credit scores considerably. Reestablishing a positive payment history can help your scores recover.
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A lender may report a payment that is 30 or more days past due to the major credit bureaus, and that information can stay on your credit reports for up to seven years.

Payment history is one of the most important credit score factors, so making a late payment on a credit card or loan can lower your scores noticeably, especially if you have a higher score to start.

We’ll review how late payments can affect your credit scores and what steps you can take to recover.

What happens when you make a late payment?

Keep in mind that a payment that is a few days late is typically treated differently than one that is officially reported as a missed payment. While a creditor might charge a fee for any payment made after the due date, they typically don’t report it to the credit bureaus until it’s at least 30 days past due.

You can check your TransUnion and Equifax credit reports for free daily with Credit Karma to monitor for any late payments.

Depending on how late you made your payment, as well as your lender’s specific terms, you might experience the following:

You could be charged a late fee

If you pay a credit card bill after the due date, your card issuer can charge you a late fee, which will typically appear on your next billing statement. If you continue to miss due dates, you can incur additional late fees.

Your interest rates may rise

Paying late may also trigger a penalty annual percentage rate (APR) on your credit card account. A penalty APR is a higher interest rate that issuers can apply to your existing balance and new purchases. 

This rate is often as high as 29.99%, which can significantly increase your interest charges. If you have a promotional introductory 0% APR, a late payment could also cause you to forfeit that rate.

The late payment may appear on your credit reports

Lenders typically report your late payment to one or more of the three main credit bureaus — Equifax, Experian and TransUnion — after your payment is at least 30 days late. This negative mark can remain on your credit reports for up to seven years.

An account that continues to go unpaid could eventually go into default or be sent to a collections agency, causing further damage to your credit.

Your credit scores may decrease

Since payment history is the most influential factor in many scoring models, a single missed payment reported to the bureaus can lower your credit scores. The exact impact depends on your overall credit profile and how late the payment is, but it can be significant, especially for those with otherwise strong credit.

Why do late payments affect your credit?

You have many different credit scores, and lenders use them to get a snapshot of your financial health and assess the risk of lending you money. Your history of making on-time payments is a primary indicator of your ability to manage debt.      

A missed payment suggests to lenders that you may have trouble repaying what you owe, which could represent a potential loss for their business.

Because of this, payment history is heavily weighted in credit scoring models. For example, it accounts for 40% of your VantageScore 3.0 score (the model used on Credit Karma) and 35% of your FICO® Score 8. That’s why a single late payment can have a more noticeable impact on your credit scores than other factors.

What can you do if you’ve made a late payment?

If a bill is past due, you should try to pay it as soon as possible. To minimize the negative effects and avoid future late payments, you also can:

Request a fee removal

If you have a strong history with the lender, or if it’s your first missed payment, you can contact them and ask if they would be willing to waive the late fee as a gesture of goodwill.

Work to reset your penalty interest rate

If a late payment resulted in a penalty APR, the issuer is generally required to revert to your standard rate after you’ve made six consecutive on-time payments. Getting back on track can help you save on interest costs in the long run.

Set up autopay for future payments

If a late payment lowered your credit scores, the most effective way to recover is to consistently make all future payments on time. Over time, this positive behavior can help your scores gradually improve. Setting up automatic payments or calendar reminders can help prevent future missed payments.

Next steps: Monitor your credit

The consequences of a late payment can be discouraging, but your credit scores can recover with time and consistent effort. One of the best ways to manage your financial health is to monitor your credit regularly.

If you believe a late payment on your credit reports is a mistake, then you can dispute the error with the credit bureau or creditor.

Credit Karma provides free credit scores and reports from TransUnion and Equifax using the VantageScore 3.0 model. By checking your reports, you can keep an eye on your payment history, track your progress and spot any potential errors that could be affecting your scores.

FAQs about late payments

How much does a late payment affect your credit score?

The exact number of points your credit scores will drop depends on several factors, including your current scores, how late the payment is (30, 60 or 90+ days), and your overall credit history. Since payment history is the most heavily weighted factor in both common VantageScore and FICO® scoring models, the impact can be significant. Someone with a very high score and a clean record may see a larger point drop than someone with a lower score and previous blemishes.

What happens if I am two days late on my credit card payment?

If your payment is only a couple of days late, your lender creditor may still charge you a late fee. However, creditors typically don’t report late payments to the credit bureaus until they are at least 30 days past the due date. As long as you make the payment within that 30-day window, it shouldn’t appear on your credit reports or affect your credit scores.

How long does a missed payment stay on my credit report?

A missed payment that is reported to the credit bureaus can remain on your credit reports for up to seven years from the date of the delinquency. While its impact on your credit scores will lessen over time, especially as you add more positive payment history to your reports, the record of the late payment will still be visible to lenders during that period.