How long do late payments stay on your credit report?

Late and missed payments, and what they mean for your credit report

Late payments can leave a lasting legacy on your credit history, making it harder for you to get approved for credit in the future. However, there’s no need to panic (too much), as they do have a time limit. 

We’ll show you all you need to know so you can get your credit report looking its best, exploring the way late payments show up, how you can see them, and what you can do to stop them from happening again. 

How long do late payments appear on your credit report?

A late payment will appear on your credit report for six years. The same is true for unpaid debts or any debts that are in the process of being collected. Generally, the longer a late payment is on your credit report, the less of an impact it will have, as lenders will be able to see your financial management has improved over time. Lenders are also much more interested in your recent credit history, so a late payment that happened a few years ago won’t be as much of a concern as one that happened last week.

Can you remove late payments from your credit history?

Ah, that would be nice, wouldn’t it? But you can only remove late payments from your credit score if they’re false ones, and you can prove they’ve been recorded in error. If you make payment within 30 days of the original due date, the late payment might not show up on your report at all, so it pays to be fast. 

If you think a late payment report is false, you need to contact the creditor the payment was made to, and the credit agency whose report you’re looking at, to raise a dispute. 

What type of missed payments affect your credit score?

Any type of missed payment to a lender will show up on your credit history. It doesn’t matter whether that’s a phone bill, car finance, a mortgage or paying off a store credit card - there are no different levels of weighting to late payments - if you miss it, it will have a negative impact on your credit report

How badly do missed payments impact credit reports?

Different types of late payment will show up on your credit score in the same way, however the circumstances around the late payment can make a difference. For example, if a payment is over 90 days late, it will do more damage than one which is only 30 days overdue. If you regularly miss payments, this will also affect your score more than a single missed payment would. 

The impact of these missed payments will decrease over time, as lenders are more interested in your recent credit transactions. 

How can you avoid late payments?

The best way to stop late payments damaging your credit report is to avoid them all together, but we know that’s easier said than done. There are a few things you can try to get you in a better paying habit, all of which could help improve your credit score and make you more likely to be accepted by lenders in the future. 

1. Set up direct debits

Direct debits mean money will automatically go out of your account at the required time, if the funds are available. This can take the pressure off you remembering when money is due.

2. Budget smart

It’s important you know how much money will come out for payments each month, so set yourself a budget to make sure you’ve always got enough in your account. 

3. Do regular reviews

It’s easy to forget about automatic payments. Check your outgoings regularly to make sure you’re not paying for anything you no longer need, and shop around to find better deals that could save you money.

4. Make payments a priority

We know paying off credit isn’t as exciting as going out for dinner or seeing a movie, but by making payments a priority, you’ll be doing future you a huge favour. Managing payments now could give you access to more exciting things later.

5. Set reminders

If you don’t want to set up direct debits, calendar reminders are the next best way to ensure money goes out on time. These can appear on your phone, on your computer and even on your smart watch, making them very hard to ignore.

Can you see late or missed payments on your credit report?

Lenders aren’t the only ones who can see late payments - you can too. When you view your credit report on Equifax, Experian, TransUnion or the Boshhh Mobile app (available on iOS and Android), you’ll be able to see when payments were missed and who the money is owed to. This can help you understand what’s holding your credit score back and which payments you need to get on top of. 

Which tools can help with managing bills?

Managing bills can be a headache, but thanks to the wonders of the internet, it doesn’t have to be. Lots of banks now offer budgeting tools, with the likes of Natwest, Monzo and first direct all including specific features to help make budgeting less of a bore. There’s also a budgeting tool over at MoneySavingExpert which lets you track your spending and get on top of your bills. If anyone can help with your bills, it’s Martin Lewis. 

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