How Long Does a Delinquent Payment Stay on Credit?

Credit reports document an individual’s financial behavior, with payment history as a primary component. Understanding how this information is recorded and its duration on a credit report is important for managing one’s financial standing.

Defining Delinquent Payments

A delinquent payment refers to an amount that is overdue, beyond a certain number of days past the original due date. While a payment missed by a few days might incur a late fee, it does not appear on a credit report. Creditors report a payment as delinquent to the major credit bureaus—Equifax, Experian, and TransUnion—once it is at least 30 days past due. This 30-day threshold marks the point where a late payment transitions into a delinquency.

Various types of accounts can report delinquencies, including credit cards, auto loans, mortgages, and some utility accounts. If a payment remains unpaid for longer periods, such as 60, 90, or 120 days, the severity of the delinquency increases, and it is noted on the credit report in 30-day increments. Continued non-payment can lead to the debt being charged off by the original creditor and sent to a collection agency, further impacting the credit report.

Standard Reporting Periods

A delinquent payment remains on a credit report for seven years from the date of the original delinquency. This timeframe is set forth by federal law, specifically the Fair Credit Reporting Act (FCRA). The seven-year period begins from the date the account first went past due and was not subsequently brought current. Even if the overdue amount is eventually paid, the record of the delinquency stays on the credit report for the full seven years from that initial missed payment date.

The FCRA mandates how long negative information, such as delinquencies, can remain on a credit report. For instance, if a payment was 30 days late in June 2022 and then brought current, the delinquency would be removed from the credit report in June 2029. This applies to various forms of negative information, including late payments, collection accounts, and charged-off debts.

Credit Score Implications

Delinquent payments on a credit report significantly impact credit scores because payment history is a major factor in most credit scoring models. A single delinquent payment can cause a substantial drop in a credit score, particularly for individuals who previously maintained a high score. The more recent and frequent the delinquencies, the greater their negative effect on the score.

A lower credit score can restrict a consumer’s financial opportunities. It can make it more challenging to obtain new loans, credit cards, or mortgages, and when approved, the terms, such as interest rates, may be less favorable. Beyond traditional lending, a diminished credit score can also influence rental applications, insurance premiums, and some employment considerations. While a delinquency remains on the report for seven years, its negative influence on the credit score lessens as it ages, especially if a consistent pattern of on-time payments is re-established.

Reviewing and Correcting Errors

Reviewing credit reports is important for consumers to ensure the accuracy of reported information. Consumers are legally entitled to receive a free copy of their credit report from each of the three major credit reporting agencies—Equifax, Experian, and TransUnion—once every 12 months. These reports can be accessed through AnnualCreditReport.com.

If a consumer identifies an inaccurate delinquent payment on their credit report, they have the right to dispute it. This dispute process can be initiated directly with the credit bureau that issued the report, or with the creditor that supplied the information. When disputing an error, provide supporting documentation, such as bank statements or payment confirmations. The credit bureaus are required to investigate the dispute within a specific timeframe, often 30 days, and if the information is found to be inaccurate, they must correct or remove it.