Doug's Credit Center Blog

How Long Does Late Payment Show Up On Credit Reports?

Borrowers that are concerned about their credit scores may be wondering how long late payments show up on their credit reports. Late payments are an important component to a borrower’s credit score and can negatively affect a credit score by a significant amount. Not paying on a home or car loan in time will also stay on most borrower’s credit reports for a long amount of time which is what makes it so critical to avoid falling behind on payments.

How Companies Report Late Payments


Different companies will report a late payment at different times. Some companies will offer up to 45 days before they will report a missed payment to the credit bureau. Often times the fees and penalties for tardy payments will still be assessed before the account reports anything to the credit bureau so the borrower cannot rely on these to determine whether the missed payment has actually hit their credit report.

Delinquent Accounts and Collections

Once a late payment has hit a credit report it will often stay on the credit report for up to 24 months. Accounts that are currently delinquent will also be shown, and the amount they are delinquent will show on the credit report. Being behind on your payments will affect a borrower’s credit score but they are not as bad as delinquencies and charge offs. These should be avoided by the borrower at all costs.

Any time a borrower goes to collections over an account they will find that their credit score will go down significantly. Furthermore, many companies such as auto finance companies use an adjusted credit score based on the borrower’s activity with similar accounts. This means that a borrower that has been slow to make their automobile payments in the past will have a lower automobile-related credit score than someone who has been tardy on payments that are not related to vehicle financing.

Late payments that have been reported erroneously should be corrected as soon as possible. Consumers should watch their credit reports to make sure that there aren’t any mistakes related to missed payments. If there are any mistakes, the consumer can usually correct it very easily by showing the credit bureau that they made the payment on time. They can also sometimes ask their creditor to correct the issue themselves. It is very important to correct errors in a timely fashion because they are usually more difficult to correct after a certain amount of time has passed.

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