How Long Does a Missed Payment Stay on Credit?

Credit reports serve as comprehensive records of an individual’s financial behavior, detailing borrowing and repayment activities. A missed payment, generally defined as an account payment that is 30 days or more past its scheduled due date, represents a significant negative entry on these reports. Such an entry can substantially impact a credit score, influencing future access to credit, loan terms, and even housing or insurance opportunities.

Reporting Timeline for Missed Payments

A missed payment typically remains on a credit report for up to seven years from the “original delinquency date.” This seven-year period begins from the “original delinquency date,” which is the date the payment was first missed and the account became 30 days past due. The reporting timeline applies even if the account is later paid, charged off by the creditor, or sent to a collection agency. Once this seven-year period expires, the negative entry is automatically removed from the credit report, a process often referred to as “falling off.”

Factors Influencing Reporting

The severity of a missed payment’s impact depends on how late the payment becomes. Creditors categorize delinquencies by duration, commonly as 30, 60, 90, or 120-plus days past due. A payment is generally reported to credit bureaus only after it has reached at least 30 days past its due date.

Missing a payment by a few days typically results in late fees but usually does not get reported, particularly if the full payment is made before the 30-day mark. However, partial payments often still result in the account being reported as late. Each subsequent level of delinquency can cause a more significant negative impact on one’s credit score.

Checking Your Credit Report

To identify any reported missed payments, individuals can obtain their official credit reports from the three major nationwide credit bureaus: Equifax, Experian, and TransUnion. The authorized source for free access to these reports is AnnualCreditReport.com. Consumers are entitled to free weekly access to their credit reports from each bureau through this website. When visiting AnnualCreditReport.com, users will need to provide personal identification information, such as their name, Social Security number, address, and date of birth, to verify their identity and access reports.

Accuracy and Removal of Missed Payments

Reviewing credit reports for accuracy is important. If an individual discovers an inaccurate missed payment entry, they have the right to dispute it. Disputes can be initiated directly with the credit bureaus (Equifax, Experian, and TransUnion) and with the original creditor that furnished the information. The dispute process typically involves submitting a written explanation of the error and supporting documentation; online and phone options are also available. Under the Fair Credit Reporting Act (FCRA), credit bureaus are generally required to investigate a dispute within 30 days and correct any confirmed inaccuracies.

Accurate missed payments cannot be removed from a credit report before the statutory reporting period expires. There are no shortcuts or methods to force the early removal of accurate negative information; such claims are often associated with credit repair scams. The impact of accurate missed payments on a credit score naturally diminishes over time, even before they are removed.