When Do Missed Payments Fall Off Your Credit Report?

Missed payments, often called delinquencies, occur when an individual fails to make a required payment on a loan, credit card, or other financial obligation. Creditors record these instances and report them to nationwide credit bureaus, where they become part of an individual’s credit report. Understanding how long these entries remain on credit reports provides clarity for managing financial standing.

Standard Reporting Periods for Negative Information

The Fair Credit Reporting Act (FCRA) establishes guidelines for how long most negative information, including missed payments, can remain on a consumer’s credit report. Generally, this period is seven years for most derogatory items. This seven-year timeframe typically begins from the “date of first delinquency” (DOFD) that led to the negative status. The DOFD is the date the account first became significantly overdue and was not subsequently brought current. If an account becomes delinquent and subsequent late payments occur without it being brought current, the initial DOFD remains the starting point for the seven-year reporting period. This prevents the reporting period from resetting with each new missed payment on a continuously delinquent account.

Specific Account Statuses and Their Reporting Timelines

Individual late payments, whether 30, 60, or 90 days past due, are generally reported to credit bureaus and can remain on a credit report for seven years from the date of that specific delinquency. Even if the past-due balance is eventually paid, the record of the late payment remains on the report for this duration. Creditors typically report a payment as late once it is more than 30 days past its due date.

When a creditor determines that a debt is unlikely to be collected, they may “charge off” the account. A charged-off account is a serious negative entry that remains on a credit report for seven years, also calculated from the date of the original delinquency that led to the charge-off, not the date the account was charged off. Similarly, collection accounts, which arise when a debt is sent to a collection agency, also typically remain on the credit report for seven years from the original delinquency date of the account that went into collections. Paying a collection account updates its status to “paid collection” on the report, but the entry will still remain for the full seven-year period.

Bankruptcy filings have distinct reporting periods. A Chapter 7 bankruptcy, which involves the liquidation of assets to repay debts, typically remains on a credit report for ten years from the filing date. In contrast, a Chapter 13 bankruptcy, which involves a court-approved repayment plan for debts, generally stays on a credit report for seven years from the filing date. These timeframes are set by federal law and are consistently applied by the credit bureaus.

Accuracy and Dispute Processes for Credit Report Entries

Consumers are entitled to a free copy of their credit report once every 12 months from each of the three major nationwide credit bureaus: Equifax, Experian, and TransUnion. These reports can be accessed through AnnualCreditReport.com. Regularly reviewing these reports allows individuals to identify any potential inaccuracies or outdated information.

Inaccuracies can include incorrect account balances, payments reported on the wrong dates, accounts that do not belong to the consumer, or negative items that should have already fallen off the report. If an error is identified, gather any supporting documentation that substantiates the claim, such as payment records, correspondence with creditors, or identity verification documents.

To dispute an inaccuracy, you can contact the credit bureau directly, or the original creditor that furnished the information. When initiating a dispute, provide your complete name, address, and the account number in question, along with a clear explanation of the specific inaccuracy. Send copies of supporting documents, rather than originals, and keep a record of all communications. Credit bureaus are required to investigate disputes within 30 days and will notify you of the results, correcting or deleting information if it is found to be inaccurate or unverifiable.