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From the Experts at Credit.com

Late Payment Secrets Revealed

by Gerri Detweiler

Late Payment Secrets Revealed

In the complicated world of credit scores there is one fact that pretty much everyone assumes is true: late payments are bad for your credit scores. Not only are late payments bad, but they are also assumed to be one of the worst things you could do to your scores. The first sign of a late payment on your credit reports signals impending credit doom, right? It turns out that this isn’t necessarily the case after all.

Before we get into the specifics of how late payments affect your credit, it’s essential that you find out exactly how they are affecting your credit. To do that you need to do two things:

  1. Get your free credit score from Credit.com which will explain in detail the factors that are having the greatest impact on your scores, including delinquencies, and what you can do about them.
  2. Get your free annual credit reports from each of the three major credit reporting agencies, Equifax, Experian, and TransUnion so you can see whether your reports contain late payments.

Credit scores are used by financial institutions, insurance companies and utility companies as an efficient way to predict how risky a customer you will be. If your credit score is low, it indicates that you are more likely to make late payments or file costly insurance claims. In turn, this means that the creditor is more likely to lose their investment by lending you money. Once you understand that credit scores predict this specific behavior, it’s a lot easier to figure out the best way to manage your credit.

Because scoring systems are so focused on predicting whether or not you’ll go at least 90 days late, surprisingly, 30 or 60 day late payments that occurred long ago are actually not that damaging to your credit scores as long as it is an isolated incident. It’s when your accounts are recently reported 30 or 60 days past due on your credit reports that your credit scores plummet temporarily.

If 30 or 60 day late payments are an infrequent occurrence, they shouldn’t cause lasting damage to your credit score unless they are recent (last two years or so) or 30 or 60 day late payments on a regular basis. In this case, the fact that you are habitually late with your payments will cause long term damage to your credit scores.

It’s a whole new ballgame once you have a 90 day late payment, however. If you have been over 90 days late (even just once), the credit scoring models consider you much more likely to do it again. One 90 day late payment will damage your credit for up to seven years. From a scoring perspective, a single 90 day late payment is as damaging to your credit scores as a bankruptcy filing, a tax lien, a collection, a judgment or repossession. Being 90 days late causes you to be viewed as a possible “repeat offender” and a higher risk to creditors. Here’s a summary of how late payments impact your credit scores:

  • 30 days late – This record will damage your credit scores most when it is recent. The exception is if you are 30 days late often. Otherwise, a single 30-day late payment should not cause lasting damage.
  • 60 days late – Similarly, recent 60 day late payments cause the most damage. Again, the exception is if you are 60 days late often which will certainly hurt your scores. Otherwise, one late payment should not cause long term damage.
  • 90 days late – This record will damage your credit scores significantly for up to 7 years. It doesn’t make a difference whether or not your account is currently 90 days late. Remember, the goal of the scoring model is to predict whether or not you will pay 90 days late or later on any credit obligation. By showing that you have already done so means that you are more likely to do it again compared to someone who has never been 90 days late. As such, your credit scores will drop.
  • 120+ days late – Late payment reporting beyond the initial 90 day missed payment does not cause additional credit score damage directly. However, there is an indirect impact to your scores. At this point, your debt is usually “charged off” or sold to a 3rd party collection agency. Both of these occurrences are reported on your credit files and will lower your credit scores further.

If you continue to miss your payments beyond 90 or 120 days, the following records may also harm your credit score:

  • Collections – Collections are the result of late payments. There are two types of collections; those that have been sold to a 3rd party collection agency or those that have been turned over to an internal collection department. Regardless of which one shows up on your credit reports, your scores will suffer.
  • Tax liens – Tax liens are obviously not preceded with late payments on any sort of account. However, when tax liens are reported on your credit reports they have the same negative impact to your credit scores as any other seriously delinquent account.
  • Repossessions or foreclosures – Having a home foreclosed upon or a car repossessed are both considered serious delinquencies and will lower your credit scores considerably for up to seven years. The assumption normally made by the consumer is “hey, I gave the home or car back to the lender, why are they going to show me as delinquent?” The answer you’ll get from lenders is that you signed a contract with them to buy a home or car and pay it in full over a period of time. You failed to do so therefore they consider you to be in default of your agreement with them and will report this on your credit reports.

Remember, the goal of most credit scoring models is to predict whether or not you will go 90 days past due or worse on any obligation. What’s missing? The scoring models are not designed to predict whether you will default for any specific dollar amount. As such, having a 90 day past due of only $100 is as bad as having a 90 day past due of $10,000. The same goes for low dollar collections, judgments or liens. The dollar amount doesn’t matter. The fact that you paid late is what’s most important in the eyes of a credit scoring model.

Now that our late payment secrets have been revealed, let’s look at what it means to you. You should still avoid making late payments whenever possible. But we now know that one 30 or 60 day late payment isn’t the end of the world. Since 90 day late payments are the real credit score busters, you should avoid a 90 day late payment at all costs.

If you already have a 90 day late payment record on your credit history then your scores are already suffering. Be certain that the information is being accurately reported. If it isn’t then you have the right to dispute it with not only the credit reporting agencies but also with the lenders who reported it. Your goal is to have the item corrected or removed, especially if it is in error. Once removed or corrected your credit scores will immediately recover.

Credit scores are complicated. Fortunately, you don’t need to be a credit scoring genius to improve your own credit score. Using this late payment secret and other credit score information from Credit.com, you can manage your score like a credit industry expert.

Find Out Where You Stand

You can check your credit score each month using Credit.com’s free Credit Report Card. This completely free tool will break down your credit score into sections and give you a grade for each. You’ll see, for example, how your payment history, debt and other factors affect your score, and you’ll get recommendations for steps you may want to consider to address problems. In addition, you’ll also find credit offers from lenders who may be willing to offer you credit. Checking your own credit reports and scores does not affect your credit score in any way.


  • http://dea42.com/ avatar42

    In case anyone else ends up here. Bank of America charged me for a service on a card I was not using so I did not notice the charge till it was over 30 days late. I got them to reverse the charge and disputed the the flag on my credit but almost 7 YEARS later that is STILL listed as impacting my score according the Experian.

    • http://www.Credit.com/ Gerri Detweiler

      Maybe it is time to file a complaint with the Consumer Financial Protection Bureau.

      • Enore

        Hello, i co-signed a car for a friend a couple of years a go and he missed 3 payments, however the car is paid off completely and this has been on my credit for 2 years, my score is 740 and i want it to get higher as everything else on my credit is excellent and paid off and i pay my credit card balances in full every month. I will be buying a house in a couple of months and i want to get the lowest interest rate possible, is there anything i can do to dipsute the late payments, thanks

        • http://www.Credit.com/ Gerri Detweiler

          You can try disputing it. If it’s not confirmed it will be removed. But unfortunately that’s one of the downsides of cosigning…

  • http://www.Credit.com/ Gerri Detweiler

    Have you talked with the credit counseling agency that was handling the payments? They may have a relationship with the creditor where they can work with them to reage it. If not, was it the counseling agency’s mistake that it was late?

  • kiki

    Creditor reported me been 30 days late for 6 months- how many points could that be if I correct the issue.

    • http://www.Credit.com/ Gerri Detweiler

      What do you mean by correct it? You mean catch up and pay on time going forward? It’s impossible for me to say how many points that would move the needle, but late payments in the most recent 24 months usually have the most impact.

      • kiki

        I was not late, so I am disputing it as we speak, and it was in the most recent 24 months.

        • http://www.Credit.com/ Gerri Detweiler

          Ah sorry I misunderstood. If those late payments are removed your credit scores will likely increase, and it could be significant since 6 recent late payments can really hurt your credit scores.

          • kiki

            oh ok thanks

  • Cee

    I have an account I had since 2004 never been late until this past month. The company reported me as being late for Jan/ February I’m which that payment is not due until the 28th.
    I disputed this due to incorrect months. However; what kind impact does this have on my score. All my accounts have never been late ever. Thank you for your time…

    • http://www.Credit.com/ Gerri Detweiler

      I’m sorry but this isn’t specific enough for me to understand the situation. Have you checked your credit reports and credit scores? If there are multiple late payments they are probably having a significant impact on your scores, especially if they are recent. Here’s how to get your free annual credit reports.

  • SRM

    I have 30, 60 and 90 day late records for student loans still showing on my report from well over 3 years ago. The more recent details for those same accounts are paid as agreed or no data at all, since I went back to school and the loans are in deferment till after I graduate. My credit score is currently 638. Is it possible to have some of those very old late payments removed in order to improve my score, especially since my most recent payment history has been positive?
    Also, how long are hard/soft inquires supposed to remain on your report?

    • http://www.credit.com/ Credit.com Credit Experts

      Late payments will stay on your credit report for 7 years and 180 days after the account was first reported late. Your positive history can only help.

      Soft inquiries do not appear on your report at all; hard inquiries stay there for two years, but are not generally factored into scores after 6 months.

  • TPL

    I have been told that there were 2 missed payments on my mortgage account back in June & July 2012 – I am in dispute with the bank as they say they contacted me by letter and advised of the consequences of missed payments against my credit rating and I am adamant we never received the letter as they sent in after we had moved house even though the old mortgage was not paid of until the August – we had mail re–direct on but did not receive it at my partners house where we had moved to – where do I stand on this? it is making it difficult to get a joint mortgage

    • http://www.Credit.com/ Gerri Detweiler

      I am sorry I am not sure I understand the situation. You did miss two mortgage payments? And it was because you didn’t get the bills when you moved? And you only found out about this now? I ask because I’m not sure what can be done about this two years after happened. I feel for you because it really does affect your credit scores. But if you forgot to make two payments then you may be stuck with it unless you can get someone there to make a goodwill adjustment. If I’m missing something by all means let me know.

  • rileyrh1

    BoA reported me as 30 days late pymt on an auto loan. I did not make the payment as usual because I traded the car in before it was 30 days late. It was over the xmas/new years holiday so the dealership did not make the arrangements to payoff loan until Jan 7, making it 30 days past due. I completed finacial paperwork with dealership 12/22 w/payoff info & turned the car into them 12/26 expecting that I was no longer responsible for loan at that time. BoA stated it was my responsibility despite trading in prior to 30 late time frame. I have over 15yr relationship with BoA, never late on pymts, always paid more than pymt amount on that loan, have excellent credit, but just downgraded 40 pts because of this. Is there a way to dispute this? Is there a reputable company to help with this?

    • http://www.Credit.com/ Gerri Detweiler

      This is a tricky subject. I have no doubt you are acting in good faith expecting the payment to be made before that last payment was due. On the other hand, the lender will probably tell you that you’re responsible for making those payments until the loan is paid off. Have you tried filing a complaint with the Consumer Financial Protection Bureau?

  • Maria

    Mu husband is in charge of our finances and I recently found out we have been 30-60 days late 9 months out of year in 2014, and 30-180 days late 5 months out of the year in 2012. Will we ever be able to get credit again?!? Or do we have to wait 7 years assuming we are on time from here on…

    • http://www.credit.com/ Credit.com Credit Experts

      You can only start where you are. At this point, if you can catch up and stay current, you’ll have some positive information on your credit report. Here’s more on rebuilding credit:
      How to Rebuild Credit

  • Sha

    My student loan is currently 90 days past due. (Before this my credit was good) They (the loan lender) claims if I don’t pay by the end of the month it will be reported to the Credit Bureaus and go into the 120 days starting the beginning of next month. Since I am already at the 90…should I rack my brain trying to get things paid before entering into the 120..Or is the damage already done and I can go ahead and give myself a month to get other things in order?

    • http://www.Credit.com/ Gerri Detweiler

      I assume this is a federal student loan…? Don’t let it go into default if at all possible. Have you tried getting into Income-based Repayment or Pay as You Earn program? If you can get into one of those programs you may be able to get your payments reduced to as little as zero. Income Contingent Payment could be another possible option.

  • bm4n

    Hello, do you know if good will letters to creditors asking them to remove the late/missed payments are worth it? Also is there a way to request to remove hard inquiries?

    • http://www.Credit.com/ Gerri Detweiler

      It depends on whether you want to make the effort. They don’t always work, but if they do, that’s one less thing to worry about.

      Disputing hard inquiries is probably not worth it. They only affect your scores for a year and they are removed after two.

  • bm4n

    For late or missed payments on student loans that were consolidated, is there anything I can do as far requesting them to be removed. I’ve had my loans consolidated for about 14 months now and every payment has been on time since then, however my credit report stills show the original loans prior to consolidation with 11 missed payments from 4 years ago. Would I be able to send them a good will letter to request for them to the remove it?

    • http://www.credit.com/ Credit.com Credit Experts

      It never hurts to try, but time may be your greatest ally. Late payments have less impact as time passes, and they disappear after 7.5 years. On-time payments will help. And if you have other credit, particularly credit cards, be sure you pay on time and keep balances low relative to your credit limit. Here are some other tips:
      How to Rebuild Credit
      Good luck to you.

  • cassies

    Just wondering if you can tell me..I paid a credit card off in April of 2011 the date of last activity is April of 2011 however it shows a date reported of February 2015 could u please explain to me how a paid off account im 2011 is now showing a date reported in 2015 I am unsure why anything would be reported for this year when the account was paid off 4 years ago

    • http://www.credit.com/ Credit.com Credit Experts

      Have you tried disputing it? And is it now on all three reports? You can get all three reports once a year at AnnualCreditReport.com. Here’s how to dispute errors in your credit reports: A Step-By-Step Guide to Disputing Credit Report Mistakes

    • http://www.Credit.com/ Gerri Detweiler

      Your account is likely still in their system and therefore information continues to be reported. Are you concerned for a particular reason? Simply the fact that it continues to be reported isn’t necessarily negative…

  • cassies

    Also when there is a date reported is that affecting my credit score as well I do not have this credit card any more ,….

  • http://www.Credit.com/ Gerri Detweiler

    Each negative item is another indicator of credit risk. The 90-day late will be counted separately from the mortgage. But either way, you can start to rebuild your credit as soon as your bankruptcy is completed. As negative information gets older, it carries less weight provided you have current on time references on your reports. Please read: How to Rebuild Credit

    • sylviag

      Gerri,
      Thanks for the reply and input.. I am a bit confused.. what do you mean that the 90-day late will be counted separately from the “mortgage”? what mortgage? Sorry I guess you lost me there.

      • http://www.Credit.com/ Gerri Detweiler

        I meant bankruptcy – sorry!

  • Lisa G

    I got 30 day lates on my perfect credit report from Chase bank. Disputing the lates was futile since they were accurate. Its been 3 months and my score has not changed 1 point. How many months before the score will improve with consistent on time payments

    • http://www.Credit.com/ Gerri Detweiler

      It is hard to say as scoring models vary and it depends on all the information in your reports. But as these late payments become older (12 months, then 24 months) they should have less impact provided everything is current going forward.

    • Jason

      Based on my reading, you get about 15% of the drop back after 6 months and another 45% after 12, with another 15% after 24 and another 5% after 36. The remaining 20% stays until 7 years… it’s ridiculous.

      • Lisa G

        You are the 1st person I’ve witnessed on a blog to answer the question asked without all the unsolicited dumb answers like “if possible, don’t miss a payment” thank you for being that intelligent. I remember I had a 30 day late but my score stayed high. You are right, it was after about a year that my score went almost back to normal. Chase bank SUCKS! All small store cards will remove any 30 day lates as a one time courtesy. Even some loans. Usually, I used to dispute lates with the bureaus and they would get deleted. That’s more difficult now that paper mail is out and electronic responses are now the method. Thank you for your direct and knowledgeable answer.

        • Jason

          Thanks! Like you, I had near-perfect credit… made one mistake.. and will be paying the price for a year or two. Have you had legit lates permanently removed through the bureaus? If so, .. I’d love to hear your thoughts.

  • http://www.credit.com/ Credit.com Credit Experts

    Probably so. Be careful to pay all bills on time, and try to keep credit card debt to less than 30% of your credit limit (less than 10% is ideal). You can track your progress with free credit scores from Credit.com. Also, be sure to check your credit reports to make sure all the information there is accurate. Here’s how to get your free annual credit reports. Finally, it would be smart to avoid applying for new credit close to the time you want to refinance.

  • poonani

    What happens if I paid 15 minutes past midnight because I woke up in the middle of the night and forgot to make the online payment? (paypal card) Should I worry?

    • http://www.credit.com/ Credit.com Credit Experts

      Poonani —
      It depends upon what you’re worried about. If you are worried that your credit score could drop, relax. If you are worried that you might be charged a late fee, you could be right. (If it hasn’t happened before though, call your card issuer to see if you can get it waived.)

  • Mila

    I’ve been working hard the past 2 years to repair my credit and have made huge strides. The only negative thing hanging over my head are 90+ day late payments for my student loans which hit me about 3 years ago. I’ve since made repayment arrangements for all student loans and have not been late on a payment since. The problem I have with the late payments is that I never received anything from the lender after graduation (monthly bill, repayment arrangement info etc.) and so I assumed the loans were in forbearance because I wasn’t working at the time. After I started working I called to inquire about the loans and found out they were on the verge of defaulting. I was able to make the repayment arrangement just before they went in default. My question is “Do you think my situation warrants a dispute?” “Would they consider my situation and possibly remove the 90+ day late pays?” I would like to apply for an auto loan and I am afraid this information will greatly hurt my chances of obtaining one.

    • http://www.credit.com/ Credit.com Credit Experts

      Unfortunately, the borrower has a responsibility of finding out what’s going on with the lender. However, there’s also good news here, and that is that the impact of late payments fades with time. Because your late payments were three years ago (and you presumably have a good credit history since then), your scores may not be as bad as you think. You may see scores on some monthly credit card statements (and if you do, please compare those scores against the same scores to monitor your progress). You can also monitor your credit score for free on Credit.com, and those scores come with a personalized guide to understanding and improving your score. Checking your own score will not affect it, but having auto dealers check it CAN affect it, so be sure you are well prepared before giving anyone your consent to check your scores.

      • milaley

        Thank you for your response. I have been monitoring my credit monthly on credit.com for the past year. It’s helped me to understand my credit situation and how to make a plan to help increase my score. I’ve compared the score on my monthly report with the free FICO score from my credit card company. I’ve been able to increase my score in the past year from a 632 to a 666 (I’m not sure if that increase is good, not so great or average), but I’m curious if my current score is considered to be good enough to obtain a decent rate on an auto loan.

        • http://www.credit.com/ Credit.com Credit Experts

          Milaley —
          It will depend on which scores are used (there are some scores used specifically for auto loan decisions, for example) and what the scale is. You could call and ask your credit union or bank what the cutoffs (without actually applying or having your credit pulled) to get a better feel for it. Checking your scores is a great start. Have you also checked your credit reports? Incorrect information there could be hurting your scores and should be disputed before you shop for a loan. Here’s how to get your free annual credit reports.
          If you need to dispute, here’s how to do that:
          A Step-By-Step Guide to Disputing Credit Report Mistakes

    • Lisa G

      Ask the lender to remive it if they don’t. Dilute the lates with Transunion Experian and Equifax. If the lender doesn’t answer the dispute within 30days, it automaticwlly gets deleted

  • Jason

    Will a lender overlook credit score (give you 740 rates) if you are close to a 740.. and you only have one 30-day (albeit recent) IF you are an otherwise perfect buyer? Can put down 20%+, stable job and salary, liquid reserves over 50% of the mortgage amount? Basically, you’re the perfect buyer other that that 1 recent miss.

    • http://blog.credit.com/ Kali Geldis

      Hey Jason —

      A good question. It all boils down to the type of loan you’re applying for, the lenders’ credit standards and the credit score they use to evaluate your application. If the late payment is recent and not a pattern of behavior, you may have better luck asking your credit card issuer (or whoever the late payment was made to) to forgive you this one time and remove it from the data they’re reporting to the bureaus. This may or may not work, but if it helps you qualify for a better interest rate, it can mean a huge savings over the life of your loan.

  • http://www.Credit.com/ Gerri Detweiler

    If it’s a mistake, you absolutely should be able to get your credit report fixed. It sounds like you have documentation of the problem. I would suggest you get your free credit reports from all three bureaus and if they are wrong, dispute them. Include your documentation and if it’s not fixed you can either get a consumer law attorney involved or file a complaint with the Consumer Financial Protection Bureau. Please read: How Do I Dispute an Error in My Credit Report?

  • http://www.credit.com/ Credit.com Credit Experts

    Wondering —
    Credit reporting is voluntary. However, there may be company policies that govern what is reported, and how.

  • Mwrite1

    My credit history is perfect — except for one thing: I was living overseas a couple of years ago and an American Express bill never got to me. I finally realized it but it was more than 90 days overdue at that time. I immediately paid it off fully. Is there any way to get that cleaned off my history, considering that I’ve had Amex since 1975 and that’s the only time it was late? If not, how long will it affect my credit score.

    • http://www.credit.com/ Credit.com Credit Experts

      So you paid it off a couple of years ago? At this point, it shouldn’t have a great deal of effect, particularly if you have other credit lines, and they have all been paid on time. You can and should check your credit reports to make sure the information there is accurate, because credit scores are calculated from the information there. Also take a look at your credit scores, and know where you stand on the factors that affect them. Here’s how to monitor your credit score for free.

    • Jason

      90 days + are a big hit. 30/60 get pretty trivial after a year. 90 hurts for a long time.

  • Jason

    If my payment is due on Jan 18 and I pay on Mar 3, isn’t that a “30 day late”? Why did my creditor report me as being 60 days late?

    • http://www.credit.com/ Credit.com Credit Experts

      We don’t know. Have you asked?

      • Jason

        Yes. I can’t get anyone on the phone w/ half a brain.

  • steve

    ok I am a co borrower on a mortgage the borrower missed 3 payments and did not tell me as soon a I found out I paid the mortgage up to date, I have a nid 800 credit score and currently have 8 mortgages as I invest in real estate, how bad will this hurt my score

    • http://www.credit.com/ Credit.com Credit Experts

      Steve —
      Unfortunately, the higher your score, the more a negative item on your credit can hurt, because payment history accounts for 35% of your score (more than any other factor). Here’s how to monitor your credit score for free. Unfortunately, co-signing is risky and often doesn’t turn out well.

  • CMC

    I have an unpaid cellphone bill that went to collections years ago. It is scheduled to be removed from my credit report in July this year. Should my score go up when it’s removed? If so, does my score go up the same amount whether I pay it off now or if I just let it “expire” this summer without actually paying it?

    • http://www.Credit.com/ Gerri Detweiler

      Paying a collection account doesn’t typically boost your credit scores. And paying one this old could have unintended consequences. Once it’s no longer reported it will have no impact on your credit scores, regardless of whether it was paid or unpaid.

  • Wilson

    I have an issue where I had finalized a BK back in July 2012 and since then reestablished my credit completely with a car loan and credit card and I’ve been paying my student loans on time. I also used a credit repair company to help remove some items that were included in my BK from the credit agencies. I then took it upon myself to finish up having a few remaing items removed from credit report and have had some issues. First, I had a checking account that was included, so I sent a request to remove the negitive item from my credit and they sent the request over to the credit agencies but the credit agencies have updated there end with a new report date but didn’t change anything it shows up as included in BK but it has decreased my credit score by 26 points because of the new report date. What can I do to either have them delete this for being inaccurate because of the new report date or have them back date it back to the last date that it was reported which was June 2012 because of my BK in July 2012? To me this is a form of credit slander. Am I right??? I am in the process of having a house built and me trying to get my score up in the 700s from a 680 has now resulted in my credit dropping almost 30 points for something that happend over two and a half years ago. I had no credit blemishes until I started disputing the credit agencies and the companies doing the reporting to the agencies. Can you help me with getting this resolved?

  • http://www.Credit.com/ Gerri Detweiler

    It is very unusual for a creditor to report a 14 day payment as late. Have you tried talking with the manager at the dealership that sold you the car? Perhaps they can pull some strings for you…

    • Aj

      iv spoke to them they just said 7 days is there policy. Iv never heard anything like it. My car is up for renewal in May am worried this is going to affect me getting my new car on finance/lease. Am really wound up over this like I said this is the only blemish iv ever had on my report its always been excellent. I just hope there’s another route I can go down to get this resolved. Do you have anymore ideas?

      Thanks for your help

    • Aj

      Iv spoke to them they said 7 days is there policy. Am due to renew my car in May and am worried this will affect me getting finance/lease. Is there anything else I can do to rectify this?

      Thank you

      • http://www.Credit.com/ Gerri Detweiler

        You could try disputing it with the credit reporting agencies. If it’s not confirmed it will be removed. Other than that I’d say if it’s an isolated payment it hopefully won’t have a major impact. And you may want to lease or finance with someone else next time!

  • Frustrated

    I have always had perfect credit and Macy’s just reported a 30 days late on my report and my FICO dropped by 70 points. The Macy’s payment was actually 29 days late (when they posted it), but because it was in March with February only having 28 days, it was one day outside of their billing cycle. Per Fed regulation, everything I am reading is that they can’t report it as 30 days late unless it is truly 30 days late regardless of billing cycle. Is that true? Also, the payment was mailed 2 weeks earlier and all other checks mailed at the same time cleared my account up to one week earlier than Macy’s. My feeling is that Macy’s failed to process my check timely and also reported something that even with their late process was 29 days late as 30 days to the credit bureaus. I have contacted them several times and provided written verification of everything I have said above and they are continuing to refuse to change their reporting. Help. Any suggestions?

    • http://www.Credit.com/ Gerri Detweiler

      I’d suggest you file a complaint with the Consumer Financial Protection Bureau. Let us know what happens.

      • Frustrated

        I did file a complaint with CFPB. They sent off a letter to Macy’s (DSNB) and Macy’s replied back with the response letter that they sent to me, which didn’t acknowledge that they reported a late payment as 30 days late when it was less than that. They also didn’t acknowledge any of the information that I sent them regarding their late processing of my payment. The CFPB got back to me with the letter that Macy’s sent, which only said that they did their research and believe that they reported it correctly completing ignoring the facts and specifics of the case. I responded to the CFPB case with a dispute explaining that Macy’s didn’t respond to the allegations and that they are indeed wrong. The CFPB responded to me today and basically said that they will “investigate”, but not to expect any more responses from them and that they can’t force Macy’s to change their reporting. If they get enough of the same complaints, they will make a case against Macy’s, but that is it, so basically they were not helpful. I have also sent disputes out to all 3 credit bureaus and Transunion responded that they have removed the item from Macy’s albeit that could be temporarily if Macy’s responds to them with a confirmation. I haven’t heard back from Equifax or Experian, yet. My final step will be to hire an attorney, I guess. So, so frustrating…..

        • http://www.Credit.com/ Gerri Detweiler

          I agree – very frustrating!

  • yaya

    I’ve had one late auto payment with ford that was in December. How long will it take me to get that removed ?

    • http://www.credit.com/ Credit.com Credit Experts

      Have you checked to see that it was reported at all? (Depending upon how late, it may not have been.) If it has been reported, it can stay for seven years. Here’s how to get your free annual credit reports. Keep in mind that its impact will be smaller if it’s an isolated event and if you also have lots of positive information. And the more time passes, the less it will matter.

  • http://www.Credit.com/ Gerri Detweiler

    Yes, typically as negative information gets older it carries less weight. But your story is a bit confusing; have you been able to get to the bottom of why you were reported late while they are were in deferment? If you think it was incorrect you may want to file a complaint with the CFPB.

  • Brett Culver

    I have 2-3 late payments in 2013, none more than 30-60 days however my credit has plunged 100pts and while I was transistioning from military to civian life. What can I do to repare credit score?

    • http://www.Credit.com/ Gerri Detweiler

      Do you know what caused the plunge in your scores? Was it the late payments? If so then it’s going to take time for your credit to recover. Paying on time going forward will help.

  • MRH

    A few years ago I used a credit consoliation company. The took over negotiated deals with my credit card and loans. I paid a lump some every month to them and they paid the companies. Anyway. One of the loan accts apparently received the first payment when this was set up that made it report on credit report 30 days past due. When I called the consolidation company they said that they were handling it and paying it. I found out last year that that never happened. My credit report showed about 23 payments 30 days late. I tried to call the company that reported it, but was told they could do nothing about it because the lates happened before they bought my acct. Is there anything I can do now to get it removed?
    Thanks in advance. :)

    • http://www.Credit.com/ Gerri Detweiler

      Have you asked the consolidation company again if they can help? They often have relationships with lenders that will “reage” account when they go into one of these programs.

  • http://www.Credit.com/ Gerri Detweiler

    It sounds like this debt has bounced around one agency to another (and another). The agency reporting it open has certain obligations. Did you contact the most recent collection agency? Asked them to send you written verification of the debt? If you did and they did not respond then they may be breaking the law.

  • Rocky

    I have a few questions? one I have 4 30 days late payments in a row that I am trying to get of my credit report. I had actually made payments for the months that are being reported late.Before that I was in the 750 range and now I am in the 622 range. I started a company and need to purchase a company vehicle and lease a office because of the late payments I cannot get the things I need to get my company off the ground any suggestions would be appreciated. Also I had received a letter from a collection agency from 10 years ago I know that I paid all my bills debts. just to be on the safe side should I leave it be so it doesn’t pop up on my credit report or contact the collection agency and take the chance that its something I missed and is mine?

    • http://www.Credit.com/ Gerri Detweiler

      If the late payments are accurate it may be hard to get them removed. Not sure what you’ve tried, but have you asked them if they can reage them? Sometimes if there are extenuating circumstances they will work with you.

      As far as the old collection account goes, it should be too old to appear on your credit reports. This article may help: The 7 Biggest Questions About Debt Collections & Your Credit

  • DT

    A few years ago I had a Best Buy credit card and was paying my monthly bill without an issue. One month I received a phone call from my bank saying they thought they had a fraudulent withdrawal from my account. They stated that it was from somewhere out of California (a few states away) and gave me the phone number that showed up on the transaction. I tried calling the number many times and wasn’t able to reach anyone. After consulting with my bank, we decided to do a chargeback on the transaction. A month later I received a phone call from HSBC which had taken over the credit program for Best Buy. They stated that my account was past due and I owed xxx amount to bring it current. This happened to be the charge that my bank thought was fraudulent and was issued the chargeback. Because the money was reversed, it made my payment late 30 days. I asked HSBC and Best Buy why I hadn’t been notified of the change and that it was for this reason that my payment was reversed and consequently late. They basically ignored me and I got nowhere with the situation. Long story short- I paid off my card with Best Buy and am stuck with a 30 day late infraction on my credit. What do you suggest?

    • http://www.Credit.com/ Gerri Detweiler

      You can try filing a complaint with the CFPB. If you don’t get anywhere don’t get too stressed out. One 30-day late payment several years ago shouldn’t sink your credit score any more.

  • tonyjohn22

    I have a 30 day late payment on my credit report that hit 15 months ago when I was hospitalized. I called the creditor and explained the situation and paid the creditor 1 day after the 30 days. I haven’t been late again for over 15 months. Is there any way I can get this 30 day late off my credit report? If so what do I do?

    • http://www.Credit.com/ Gerri Detweiler

      How frustrating. You can certainly ask the creditor for a goodwill adjustment. If they won’t cooperate you could try disputing it on your credit reports. If that doesn’t work, don’t get too discouraged. One isolated 30 day late shouldn’t impact your credit significantly over the long run. As it gets older, it carries less weight.

  • Sam

    Please I need an advice. I changed home and during the period I missed some payments recently for over 90 days. Actually, I was not aware of it on time as the only number they can get me on was the former house phone. The payment is up to date now and have paid off my two credit card and my bank overdraft. My credit scores is now 943 from Experian. My worry now is that, how long should I wait if I want to apply for a loan from my bank in future. Thanks

    • http://www.Credit.com/ Gerri Detweiler

      It’s hard to say but they probably will affect your credit scores for a while, especially if there are multiple late payments on there. If you get your free credit score from Credit.com you will also get an action plan for your credit. You may want to take a look at those recommendations.

  • Flash

    Hi there.
    Last week I was turned down for a new credit card on the grounds that my credit showed serious delinquency. I’ve never been late on a credit card, car or insurance payment, ever. I always pay my bills on time. My score was 629, and I’ve been unable to get any further information from Experian or Citi. I’m awaiting a full credit report at the moment, but in the interim, is there anything I can do to find out the problem? Is there any reason other than late bills that would cause serious delinquency?

    • http://www.Credit.com/ Gerri Detweiler

      It’s really hard to say. You ordered your credit report that you are entitled to for free as a result of the denial right? Once you see that you should see what’s going on. If you don’t understand it let us know.

  • Rocky

    Gerri,
    Thanks for the quick response I have tried contacting them one time last year regarding the late payments. It was like talking to a automated system all I could get out of her was that its against the law to remove the negative late payments from my credit report. I have done my fair share of digging on the subject and what I have gathered is that its not a law to put it on the report and its purely voluntary. also they can remove the negative marks at any time. any information would be greatly appreciated.
    Best Regards,
    Rocky

    • http://www.Credit.com/ Gerri Detweiler

      While that’s generally true, it’s also true that they aren’t obligated to remove accurate information. Some readers have found success by bypassing the customer support system and going to the executive level. You may have to dig around (annual reports for example) to find the right contacts but it might work. You might consider credit repair as an option if you can’t get anywhere on your own.

  • http://www.Credit.com/ Gerri Detweiler

    It’s so hard to say but why not try yourself? If you are successful then you won’t have to pay for help. If you aren’t then you can always decide if it’s worth a shot to pay for credit repair.

  • lily

    Hi. I recently lost my job in September so couldn’t pay my student loans but I called the loan company on several occasions to ask them to defer my payments. I just looked at my credit report and found out I have 6 late payments on my credit score. I thought that if you defer it doesn’t impact your score negatively? Is that correct? If so, what should I do to fix it?

    • http://www.credit.com/ Credit.com Credit Experts

      A deferral should not hurt your score. When you requested the deferral, was it granted? (Asking for one is not the same as being approved for one.)

  • Dee

    I have two 30day late mortgage payments on my credit. Was due on July 1st and was paid on August 18th, and my August payment was due on the 1st and I paid it on sept 15 then I paid sept payment on sept 29th… But my credit report shows I was 30days late for Aug and sept. When in reality I was only late for July and August. because I paid sept payment on the 29th. Do u think it’s possible for me to dispute the sept late payment and get it removed Due to inaccuracy. because I wasn’t actually late for sept…??????

    • http://www.credit.com/ Credit.com Credit Experts

      You have nothing to lose by trying.

  • Angie

    I have a credit card that charges me a fee even if I am not using the credit card. I was not aware of this. I did not use my credit card in 2 months. I had a zero balance. However the charged me the fee, about $7 a month. To my surprise I went to use my credit card & it declined. When I called the bank they said it was because I was 60 days late my balance was $14 (in fees). Now they reported the incident & it shows on my credit report as a 60 day late payment, can they do that?

  • Angie

    Hello, I have a credit card that charges this monthly fee even when you are not using the card. This was news to me. On the December 2013 I had zero balance & I did not use the card until February 2014. To my surprised the credit card declined. When I called them. They said I had a $14 balance ($7 monthly fee) that was 60 days late. They also reported this to the credit company. Can they report fees when I was unaware of this & they did not attempt to contact me?

    • http://www.Credit.com/ Gerri Detweiler

      You should have received monthly statements as required by law. Were you getting statements by email and didn’t realize it? If you normally got mailed statements but didn’t get them you can assert a billing error but you’ll want to do so in writing asap following the instructions on your billing statement. (You have a limited time under the Fair Credit Billing Act to do that. More here:
      Resolving Billing Errors With the Fair Credit Billing Act. Your other option would be to ask them for a goodwill adjustment or to complain to the CFPB.

  • Sanjay Kumar

    Hi – I had 30-day late payments on 3 accounts, around the same time in 2010 as I was traveling extensively overseas at the time, and missed paying them on time. I don’t have any other negative factors on my credit report. Will this still continue to impact my credit score?

    • http://www.credit.com/ Credit.com Credit Experts

      Do you have positive factors on your credit report? (On time patients, etc.?) The negative information will stay for 7 years, and its impact will fade with time. Here’s how to monitor your credit score for free.

      • ChrisS

        Above in the article it states “surprisingly, 30 or 60 day late payments that occurred long ago are actually not that damaging to your credit scores as long as it is an isolated incident.” and “If 30 or 60 day late payments are an infrequent occurrence, they shouldn’t cause lasting damage to your credit score unless they are recent (last two years or so) or 30 or 60 day late payments on a regular basis”

        I only have 1 missed payment across all my accounts of 30 days (30 months ago). In my report all 3 bureaus state…Factors helping my score “No serious delinquency” and “Bills paid on time recently” but Factors hurting my score “Missed payments”.

        So which is it? Do they put that because that is one of the few negative things they can find to hurt my score? Does it carry that much weight over the positives? If not so, I would think my score would be higher – ranges between 698-701 between the 3.

        And referencing the article “last two years or so” how long is – or so…should I really expect to see this hurting my score for the next 4.5 years. For a mistake that happened during a chaotic time in my life (which is neither here nor there) and a fact the bureaus are contradicting themselves on.

        • http://www.Credit.com/ Gerri Detweiler

          “Do they put that because that is one of the few negative things they can find to hurt my score? ” – This likely has something to do with it. What are the other factors listed? Do those make sense?

          • ChrisS

            To me, not really.

            All 3 say:
            “You’ve mad heavy use of your available revolving credit” – Its at 36%. From what I’ve read the ideal is 30% or less – how does 6% effect it from “ideal” to “heavy”.

            Equifax:
            “You have a short credit history” while the other two state my history as positive – “You have an established credit history”

            Experian/Transunion:
            “The remaining balance on your mortgage or non-mortgage installment loans is too high” – This loan only has ~5k left of the original ~20k with no missed or late payments.

          • http://www.Credit.com/ Gerri Detweiler

            Thirty percent or less is not necessarily ideal. FICO says that consumers with the best scores tend to use less than 10% of their available credit, though if your scores are otherwise strong you may be able to get away with using 20% or even 25%. Reason codes can definitely be confusing, and the differences between the models used by the 3 bureaus for the scores you are seeing can account for the differences in the explanations you are seeing. Unfortunately it’s hard for me to diagnose why they aren’t higher…

  • Vincent Ronzano

    My wife has a collection account from Verizon from January 2013 they said we broke our contract which we did not. However they keep on reporting the Collection as 90 days late every month for the past 6 months. By doing this it makes it look like its a new collection and new late payments. It has affected the credit score by 75 points. My question is 2 fold.
    Is this legal?
    how do I fix it so its not reporting like this?

    Thank You

    • http://www.credit.com/ Credit.com Credit Experts

      Have you tried disputing it? Here’s how to do that: A Step-By-Step Guide to Disputing Credit Report Mistakes If this fails to resolve the problem, you could consider contacting a consumer law attorney.

      • Vincent Ronzano

        I had it disputed transunion updated it right away. The other 2 did not update it. Then I was told I needed to drop the dispute when we applied for a mortage. I even offered to pay the whole amount which we don’t owe if they would remove it. They said no

        • http://www.Credit.com/ Gerri Detweiler

          I would really suggest you speak with a consumer law attorney. Given that you have a mortgage on the line you may have a case for credit damage. Unfortunately in these situations these large companies sometimes are hard to work with and it takes a letter from an attorney to get things moving! Visit the National Association of Consumer Advocates if you need help locating one.

  • INVNOONE

    My last auto loan payment was due on 4/5/2015. However, today it is 30 days late. When I called my bank they stated, “we can not tell if it has been reported to the credit bureau.” Should I pay the loan today not knowing if they already reported it late to the credit bureau. This will leave me with very little money but I do care about my credit report. Please, advise.

    • http://www.Credit.com/ Gerri Detweiler

      It’s hard to say whether it’s too late to make the payment to avoid damage to your credit. It may already be considered 30 days late.

  • lg08

    Hi, I have my credit card since last 6 years and have never missed any payments, but my last payment was due on 4th may and I paid it on 6th. I also called the bank and they waived off late payment charges. Does being one/two days late affect credit score?

    • http://www.Credit.com/ Gerri Detweiler

      Not likely. It’s very unusual for a lender to report you as late unless you are more than 30 days late. You should be fine.

  • Erin

    I have an installment loan that was past due. The payment was due on 4/11 and I made the payment in full today 5/8. clearly less than 30 days. The company is saying that because my loan was past due in April when they reported, they reported my status as past due but not more than 30 days. How badly will this affect my credit score?

    • http://www.Credit.com/ Gerri Detweiler

      I am not sure what past due but less than 30 days means…I’d suggest you get your credit reports and credit scores now and monitor them to see what happens. When you find out let us know.
      Here’s how to monitor your credit score for free. and you can get your
      free annual credit reports here.

      • Erin

        Thank you. I am doing that. And I was not sure what that means either. I thought it had to be 30 days past due to affect your credit? Do you know that to be true?

        • http://www.Credit.com/ Gerri Detweiler

          It’s not spelled out in the Fair Credit Reporting Act if that’s what you’re asking. I can see how they can make the case that you were late so the account was past due. But the typical late reporting on a credit report is 30 days, so it’s possible if it says you were thirty days late you could try to dispute that. So I think you will have to see what the report says and go from there.

          • Stephen Belford

            I have perfect credit and a small business and my credit is very important to me I had a credit card with capital one I thought it was completely paid off there was a six dollar remaining balance I paid it in full and it was 31 days late and they put it on my report what kind of options do I have? The crime does does not fit the punishment. Any suggestions?

          • http://www.Credit.com/ Gerri Detweiler

            Frustrating isn’t it? Your options are to plead with the issuer to remove it, to dispute it with the credit reporting agencies and hope it isn’t confirmed (though it probably will be) and is removed as a result, or just wait it out. The good thing is that while a recent late payment can drop your credit scores significantly, over time one 30 day late payment probably won’t ding it that much. I went through something similar a few years back due to a banking snafu and never did get it removed, but it didn’t create a big problem for me in the long run.

  • Bre

    I was late on a 1 car payment and have never been late again. I’ve enrolled in auto withdrawal and it was a total mistake to miss that payment I didn’t know it wasn’t paid. I asked them if they could do favor and remove it but since it was 30 days late they said no. It has made my score go down soo much. I want to dispute it and I need my score to make some major changes so I can get a loan on a house. Any suggestions? Thanks

    • http://www.Credit.com/ Gerri Detweiler

      You might want to try to go to someone higher up…sometimes if you can reach an executive office you might be able to appeal. I suggest looking on their website for information through their investor relations department and see if you can come up with contact info for an executive office…

  • Matt

    I had a student loan that I had trouble paying back in 2009. I have since paid off the debt in full. In the process of my refinance I discovered that one-month after the debt was paid off (12/2013), the company reported a 60 day late payment from 12/2009. Meaning in 1/2014, they reported a 60 day late from 2009. They say they were just cleaning up loose ends…seems fishy to me. I know I can dispute, but the fact is I was actually late on that payment (or assume I was…it would have been around that time). My lender is saying the late payment from 2009 is not causing me issues, it is that the late payment was reported recently (1/2014). Company says there is nothing
    they can do. What can I do?

    • http://www.Credit.com/ Gerri Detweiler

      I don’t understand exactly how it is reporting…are you able to copy that tradeline into a reply? (Without any sensitive info of course.)

  • Shawn Berger

    In March one of the apps I used reported to me a change in my credit. It was a 30 day delinquency from a retail store. It was a mistake over a $25 charge that they did not process the return properly. I called the retail store and got the charge fixed. They instructed me to write to commenity bank and ask to have it removed from my credit. On 4/4/15 I got notified from my app that it had been changed to improved status and delinquency removed. But it has only changed on transunion. Do I have to write to the bank to have them report it to all 3 bureaus or do some take longer than others to change? I keep checking and transunion report is good the other ones still show 30 day late status one month.

    • http://www.Credit.com/ Gerri Detweiler

      I am not sure I fully understand your scenario but generally if you dispute an item with the lender that reported it they must correct the item with all the agencies to which they report Have you asked them if they are going to fix it with the other two? That would e my next suggestion. If that doesn’t work, you may want to dispute it directly with the other two credit reporting agencies. This may help: A Step-By-Step Guide to Disputing Credit Report Mistakes.

      • Shawn Berger

        Ok so go back to the Retail Store (commenity bank) send another letter and make sure that the correction was sent to all 3 bureaus? Is it possible that it could take longer for some bureaus to report the fix than others? It’s been about a month

        • http://www.Credit.com/ Gerri Detweiler

          It could be an issue of a time lag. How long it will take depends on when that issuer reports. If it isn’t resolved soon you may want to go back to them.

  • Bob

    Hello Gerri, I have a couple questions.

    First, I have been behind on checking my credit reports. When I looked at them I found a public record for a judgement that was not mine over a year ago added to my reports. It has been removed by Transunion and Experian weeks ago, but not Equifax yet. But when I joined here I also see that my Experian score is higher then the one I see when I log into Experian, why is that?

    Also, late payments reported by my mortgage bank is hurting me. I have 5 other open accounts with no late payments. But this bank is a 60 mile drive round trip for me to pay in person. I was using their mail in address and had nothing but issues with payments not being posted, me having to prove it came out of my back account to them over an over. I am now making that trip monthly, but the impact on my credit is still there, anything I can do?

    Thank you.

    • http://www.Credit.com/ Gerri Detweiler

      With regard to your Experian reports, you are likely seeing two different scoring models which would account for the discrepancy.

      With regard to the mortgage payments, I am not sure I fully understand the scenario but if the bank reported you late though you really paid on time, you should definitely dispute those late payments. If the dispute with the credit reporting agencies doesn’t resolve it, you can file a complaint with the CFPB or talk with a consumer law attorney. More info here: A Step-By-Step Guide to Disputing Credit Report Mistakes

      • Bob

        Thank you. Yes I will file a dispute for those and see what happens.
        Yes, often when I mailed my (Fifth Third Bank) mortgage payment to the place that handles that for them (not the same as the bank I drive to), I was often called/mailed telling me I am behind on my payment. Then I would have to call the bank and they make me get proof from my personal bank account showing the cashed check and fax it to them. I work 12 hour swing shifts, and my bank is a CU that is not open weekends, so often this takes a while for me to get proof and for them to fix their mistakes. But they still seem to only post the payment after it is resolved!

        • http://www.Credit.com/ Gerri Detweiler

          Let us know what happens OK?

  • Danica Thomas

    i missed two payments a few months ago because of moving my bill was lost, i called and they said they will reverse the late payments. my credit score went down 40 pts. he said this will take 30 days. how much will it positively affect my score and how soon?

    • http://www.Credit.com/ Gerri Detweiler

      We can’t predict exactly how much your scores will change but as soon as the credit reporting agencies have the new information it will be used to calculate your scores when they are requested. Read more here: How Often Does Your Credit Report Change?

  • JNF3600

    Hi there. I have a credit line that is over 7 years old, and I have never been late on my payments. But in October of 2014, I had a reported 30 day late payment. I am in the process of disputing this. I am also in the process of trying to acquire a new home loan.. With a good credit score and history and this ONE 30 day late payment (which was I suppose recent) do you suspect I am likely to be denied for this sole reason? I feel as though there would be more to it than just a 30 day late payment with an otherwise spotless record. Thank you!

    • http://www.credit.com/ Credit.com Credit Experts

      JNF —
      We are more concerned about the dispute than about the late payment. We can’t tell you every lender’s policy on late payments, so we cannot guess about an approval — you will have to apply and see. But please read this about disputes when you are trying to get a mortgage: How a Credit Report Dispute Could Stop You from Buying a Home

  • Rocky

    I just received a letter from a collection agency for a account from 2007 I asked them to send me documentation to ensure that it is mine. If I am not mistaking if I do agree that it is mine and make a offer to settle the account it will start the time over and be put on y credit report what would be the best route to handle this?
    Best Regards,

    • http://www.Credit.com/ Gerri Detweiler

      If you haven’t made a payment since 2007 then it doesn’t sound like this should be on your credit reports unless there is a judgment against you. If you make a payment it shouldn’t result in it being reported. However, if you make a payment you may restart the statute of limitations and you could be sued. If they successfully sue you then the judgment could appear on your credit reports. You may want to read this article: Does Your Old Debt Have an Expiration Date?

  • Rocky

    Is it legal for a collection agency to contact a friend to get in touch with me about a debt?

    • http://www.Credit.com/ Gerri Detweiler

      Unless your friend is a cosigner the only thing they can do is contact a third party to locate you. If they already know where you are, they cannot call that person. And they can’t discuss the debt at all with that third party. If they have done otherwise you can either file a complaint with the CFPB or talk with a consumer law attorney.

      • Joe Avigdor

        Gerri – what can I do to dispute a late fee assessed by my credit card company? I have had the card for 2 years and have always paid on time. My bill is due on the 21st of each month. this month, I paid on the 21st as always. But my credit card company charged me a $35 late fee (assessed to my account on the 21st) but then “processed” my payment on the 22nd. The payment was made online, where I take out the payment and apply it to the account. My checking account shows the deduction for the payment on the 21st as well. Now, the credit card company assessed me a late fee, then processed my payment the day after, and considers my payment late because they only process payments received before 5pm.

        • http://www.Credit.com/ Gerri Detweiler

          Here’s what the Credit CARD Act says about late fees (according to the CFPB):

          “Credit card bills must be due on the same date each month and payments received by 5:00 p.m. on the due date must be treated as timely. Card issuers generally cannot charge a late fee unless consumers are given at least 21 days to pay their bill.

          Under the Act, late fees and other penalty fees must be “reasonable and proportional” to the violation of the account terms in question. The Federal Reserve Board’s implementing rule establishes a “safe harbor” benchmark for “reasonable and proportional” penalty fees, which the Board set at $25 for a first violation and $35 for a second violation within the next six months. Late fees also may not exceed the minimum payment due.”

          Have you tried asking the card company for a goodwill waiver? You could also try filing a complaint with the CFPB alleging that the amount ($35) is excessive for a first-time violation…

          • Joe Avigdor

            Thank you for the information. i have tried speaking with them but they won’t do a goodwill waiver. On the phone call, I told them to mark the fee as in dispute per the Fair Credit Billing Act (until such time I can research and write up a complaint). but the call center reps seem to want to keep the $35 late fee and don’t care about losing me as a long term customer. Do you know if payments that are paid via online (after the 5pm time frame), and the funds are deducted from your account at the time you are making the payment, be considered paid on time IF the bank allows the transactions to take place even after the 5pm deadline? In other words, the fact that they still allow the deduction of funds for the payment of the bill to occur even after their 5pm time frame should be considered “paid on time” even if they will process the next day.

          • http://www.Credit.com/ Gerri Detweiler

            I understand what you’re saying but I’m not sure that’s the case. I would assume it would be problematic if they didn’t let you make the online payment after 5 PM to be credited the next day. You could certainly take a look at the cardholder agreement to see what it says.

            But ultimately if the issuer won’t reverse it for the first transgression you may want to look for another card.

  • Turner Dramer

    if my credit card payment is due on the 28th do i have a period after the 28th to pay it without interest?

    • http://www.Credit.com/ Gerri Detweiler

      Typically, if you pay your balance in full by the due date you can avoid interest but if you pay it after the due date interest will be charged on the average daily balance.

  • http://www.credit.com/ Credit.com Credit Experts

    If the information on your credit report is accurate, there is nothing you can do to force an information furnisher to change it.

  • Al

    My question is as follows: I had a bankruptcy in August 2010 that was discharged in December 2010. Before my bankruptcy I was never late with any payments. When I declared my bankruptcy, I stopped making my payments (as I was directed to do by my attorney). The credit card companies then started reporting me 30, 60 and 90 days late during the period between my filing and my discharge. Those late payments are killing me as I am getting hit with delinquent payments on top of the bankruptcy. Should the credit card companies be allowed to do this even after they report that I was in the bankruptcy when the accounts became delinquent? What happens if I object to the credit card company? I do not want to open another can of worms, but feel I am unfairly being treated and have 2 1/2 more years and maybe 5 1/2 years of them reporting this information.

    • http://www.Credit.com/ Gerri Detweiler

      I understand this feels unfair but I am not aware of any provision that would prevent a lender from reporting an accurate late payment because it occurred pre-bankruptcy. It doesn’t sound like you have much longer to go though. Make sure you are actively rebuilding your credit in the meantime. Read:
      How to Rebuild Your Credit After Bankruptcy

      • Al

        My credit scores are between 650 and 680 now, but those credit card companies are not being fair (in my opinion). I am trying to obtain a mortgage and it is affecting the rate I will receive.

  • http://www.Credit.com/ Gerri Detweiler

    Late payments from 2007 should not be in your credit reports. If they are I would recommend you dispute them directly with the credit reporting agencies and if they are removed you can follow the instructions in the article I referenced below. Late payments prior to this month in 2008 should also be off your credit reports as they are older than seven years. Again, you can dispute them.

    Please read:A Step-By-Step Guide to Disputing Credit Report Mistakes

  • http://www.Credit.com/ Gerri Detweiler

    I truly don’t know about options for getting around it. I will have to suggest you talk with a consumer law attorney.

  • Bill

    If I see an incorrect late pay on my report and send a letter of dispute to the 3 credit reporting agencies, how many days do they have to respond? What do I do if they don’t send me a reply within that time?

    Thanks!

  • http://www.Credit.com/ Gerri Detweiler

    We just wrote an article on that topic: How Late Can I Pay a Bill Before It Hurts My Credit?

  • http://www.credit.com/ Credit.com Credit Experts

    Sounds like you’re doing all the right things. Please let us know what happens.

  • CB

    My car payment is due the 1st. I made the payment on the 25th by bank transfer. It was deducted from my bank account on the 28th. I received a letter stating that the payment was 31 days late. When I called the bank they said it didn’t clear on their end until the 2nd of the next month. They said there is nothing they can do about removing the 30 day late notice on my credit. Is there anything I can do further?

    • http://www.Credit.com/ Gerri Detweiler

      It’s an interesting question. Credit card payments must generally be credited the day they are received but I am not aware of the rules for car payments. I’d suggest you start by filing a complaint with the CFPB and sending a copy to your state attorney general’s office. And in the meantime you can dispute the late payment with the credit reporting agencies. (Keep records of your disputes in case you need to escalate it.)

      Will you let us know what happens?

  • Tam

    I recently went to try to get another auto loan however; my husband and I have a ongoing auto loan that has been 30 days late 13 times and 60 days late 10 times. He just went back to work so I was able to pay the late car payments and work out something to pay the large amount of late fees so we should be on track again but how long will it take for someone to give a a second car loan? 6 months stable car payments or more?

    • http://www.Credit.com/ Gerri Detweiler

      It may take longer. That’s a significant number of late payments and it sounds like they are recent. I would imagine your credit scores have taken quite a hit. If you haven’t done so already you may want to get a free credit score so you can monitor your progress.

  • Elaine

    Hello, about four years ago, I made an error in my payment scheduling for my mortgage. I got a new job. At the new job I was being paid monthly instead of twice a month. I ended up paying after the due date for my mortgage but I wasn’t 30 days behind. On the credit reports that I have pulled, it shows that I paid on time. Last year, I was looking into whether or. Oti would qualify for the HARP program and the counselor said she could see late payments. How is it that she could see late payments on my credit report but I do not?

    • http://www.Credit.com/ Gerri Detweiler

      Did you check your credit reports with all three major credit reporting agencies? If not, I suggest you get your free annual credit reports from the other two as well.

      If the late payment doesn’t show up on any of them then I suggest you talk with the counseling agency to try to find out what they were reviewing.

      This article may be of interest as well: How Late Can I Pay a Bill Before It Hurts My Credit?

      • Elaine

        I regularly check all three – and all of them say the same thing – that I’ve paid on time. Thanks for your help!

        • http://www.Credit.com/ Gerri Detweiler

          It’s a mystery then. If you find out from the counseling agency what they were reviewing I’d like to know!

  • LenderLivesucks

    I refinanced and the company sold my mortgage to another almost immediately. I paid my mortgage payment to the original company in April, to the new company in May and to the one they sold it to on June 4th of last year. I had to demand to pay it because I was told that the paperwork was just getting in and I would be without a mortgage payment for a month. I didn’t care for the that because I knew I’d have to pay it as some point. They got the paperwork and I paid it. I had issues with the new company’s website and reported them to the BBB because I called and made payments over the phone but they would “forget” to apply them and call to tell me I was late. I received a letter this April stating that my account was in good standing and promising a cease and desist from the calls.
    I paid my June payment online and a late fee was added but I didn’t know why since I wasn’t late. I happed to get my mail before calling the company and saw a letter from them. The letter said I was over 30 days late with my mortgage payment!!! I called and kept getting the run around. I was initially told my escrow ran out (WRONG, the online account clearly shows there was plenty of money in my escrow), then they tried to tell me I was a month overdue (NOPE, I always pay on time and my last statement has zero’s in all the other fees, late fees, etc columns), then I was told I would receive a call from their executives (yeah, right). I demanded a detailed accounting of my account since I did not authorize them to take money out of my bank account for anything other than my mortgage and I was not late, much less 30+days late. I was then told to call back the next day.
    I called back and was told that I was late in June 2014 and that the very first payment I made, on June 4, 2014 was put toward my July 2014 mortgage so I am late on the JUNE 2014 payment!!! The also reported it to the credit bureaus and my score tanked 93 points! I told them I didn’t owe anything because I’ve paid every month since June 2014 but they insist I do. I asked why I was never told that they believed I was late and WHY I received a letter in April 2015, which they also sent to the BBB and Consumer Financial Protection Bureau (where I also filed a complaint) that my account was in good standing? I was told, “You asked for a letter, you’ll receive an explanation in that letter”. I also asked where the other $400 was since the amount they claimed I was late was not equal to my mortgage payment. I was told it was a settlement amount and the letter will explain where the rest of my money is. What can I do?? This is insane!

    • http://www.Credit.com/ Gerri Detweiler

      It sounds like you have done everything you could and should. It also sounds like it is time to talk with a consumer law attorney. You may have a case for credit damage. Visit the National Association of Consumer Advocates to locate one in your area. Let us know what happens!

      • LenderLivesucks

        I will work on that then. Thank you!

  • Javlin

    Had a mortgage with jpmorgan Chase paid on time 2 years straight. I got cancer and was in a hospital for about a year meantime me and my partner kept the house a float. We decided to sell with my sudden health issue. We sold and closed on the 30th of April thought we were all set made money off the house. Now our reports are showing was not paid in full until 5/1 and that we were 30 day late. What can we do?

    • http://www.Credit.com/ Gerri Detweiler

      This is not the first time I’ve heard of this scenario. If the final payment is not made on time it can result in a late payment. You may want to try to dispute it with the credit reporting agencies. If that doesn’t work, let us know and we’ll try to advise alternative steps.

  • dawgfanm

    Hello and thank you very much for all the help you all have provided!

    I need some help with a credit report/debt issue. I’ve become very frustrated because of the seemingly back and forth advice that is floating around the interwebs regarding the best way to handle charged off old debt.

    When I was younger and dumber, I opened a Capital One card. (Congrats, you graduated high school! As a reward, take this crappy credit card that will more than likely hurt you!) After using the card for a few months, I lost my job and was unable to pay it off. While also losing my rental home, losing my roommates/friends, and almost losing my car, this Capital One card was the last thing on my mind. I stopped paying on it and they eventually closed the account and charged off $754 in April of 2010.

    Flash forward 5 years and here I am: a 650 credit score and the only negative mark on my report is this damn Capital One card. I live in Georgia and I believe that I have to wait around 7 full years for this to drop from my credit report. So after reading a ton of advice I called the Capital One Office of Executive Resolutions (1-800-955-1455) and explained that I found this on my credit report and wanted to know my options to resolve the debt/reporting. I stated that I would like to do whatever it takes to have the account reported to the credit bureaus as Paid As Agreed.

    After waiting two weeks, I finally received a letter in the mail which stated that I could pay the full charge off amount, $754, and they would update the credit reporting as Paid, Charge Off.

    So now I come to PF seeking advice. Should I pay this amount to have the balance report as zero and the status updated to Paid, Charge Off? Should I call the Office of Execuite Resolutions and push for a better Paid/Paid As Agreed reporting status if I pay the full amount? What should I do?

    Any help or advice would be greatly appreciated.

    Thank You!!!

    UPDATE: I checked my FICO score last night and it’s sitting at 590… woof. I only have 2 negative marks: the Capital One card and one late student loan payment from 2009. From my experience, it seems like most lenders are using the FICO scores to judge my credit worthiness, so I need to work hard to improve this score.

    • http://consumerrecoverynetwork.com/ask-a-question/ Michael Bovee

      You will not get Capital One to report anything other than the fact that they charged off your account all those years back, and that your account is now considered paid. They may even still report any unpaid portion on your credit reports, while still showing the account is resolved. Post an update if that happens.

      I am not sure where you read about the potential to get Capital One to report your account as paid as agreed, rather than a charged off debt, but it just doesn’t happen. If it does it is likely by accident.

  • DN

    So 1 30-day late payment can bring my score down for 2 years?? Will it at least start going back up during that time? I had 1 30-day late payment and my score went from 792 to 709. I’m looking into buying a house soon. How bad is this?

    • http://www.Credit.com/ Gerri Detweiler

      How quickly your score will increase depends on a number of factors, but yes, a recent 30 day late payment can have quite an impact. (Two years is not a hard and fast rule–depends on the scoring model and other factors on your report.) It doesn’t sounds like your score will prevent you from buying, but it could affect the interest rate you’ll pay.

  • john

    hello,

    i have recently not been able to keep up with my credit card payments from 4 different accounts, they were all balance transfer cards and i was steadily paying down the amounts, but have come into some personal problems in the past year that has affected everything, including my money and credit, i have missed 3 payments on all the cards, but then have talked to the credit card companies and came to arrangements about payments, so i will get back onto paying them regularly. my questions is, with a perfect 5 year payment record up until this point, zero mistakes or missed payments on any account until about a year ago, when i started only being able to make minimum payments for a year, and then in the past 3 months not able to make any payments, and was late 90 days on them all, so if i do get back into regular payments, and even pay all the accounts off in full in a couple of years, what can i expect as far as my credit score, and my ability to get credit from any of these companies after all of this has been resolved by me? im starting to get the idea that i wont be given any credit even after ive paid them off, as they arent even renewing my expired cards now. is this what will happen?

    Thank You,

    John.

    • http://www.Credit.com/ Gerri Detweiler

      Credit scores are calculated based on information available at the time. They won’t ignore your previous late payments but your recent late payments are a risk factor. Consumers with recent late payments (recency, frequency and severity are all taken into account) are more likely to default than those without them. You may not be shut out of giving credit, but you will probably find it more difficult to get lower interest rates until these late payments are further in the past.

      • john

        thank you for your quick reply.

        I was/am, building a business and had been using the credit system as help to get this far, I was in the process of paying the cards off over a couple of years from the income of the business, and use the resulting positive aspects of doing so to progress further, it was all going very well then yes some very bad personal problems came into being and messed things up quite well, I do have the means to pay the money back and i really do not want to start from scratch again as far as credit goes, in 6 or 7 years, so my question is, what if the amount that was repaid in full, in a couple of years after this bad period, was a substantial amount, about 50,000 dollars. and the repayment done with no late payments, no missed payments and all accounts settled in couple of years, would this change the lenders view of the person and what they might expect from them? im hoping this would be seen as a person who yes got into some trouble, but then pays it all back, as someone they could trust possibly even more than a person with no problems on their credit file, someone who got into trouble but instead of defaulting, persevered and paid all debts back, is this a realistic view of this situation or no?

        possibly also, are there any other things that could be done along with full repayment with no missed or late payments, that would help in having the lenders take a unique view of the situation, letters written or something? is this ever done? or is this just hopeful thinking by me and no matter what i do, even full repayment, this will still be viewed very badly and have a big negative impact on my ability to get credit for 6 or 7 years?

        Thank you,
        John.

        • http://www.Credit.com/ Gerri Detweiler

          Paying on time going forward will help boost your scores. (These accounts are not charged off correct? As long as that’s the case on time payments should help your scores.) Much of lending is score-driven these days. So the chance that a lender will look at the whole picture and override the score are usually remote. But you shouldn’t be shut out of credit completely as you rebuild your credit, though I won’t pretend that it won’t be frustrating for the first couple of years at least.

          • john.

            no, none of the accounts are in default.

            thank you.

          • http://www.Credit.com/ Gerri Detweiler

            Good. Then positive payments on them going forward will help over time.

      • john

        I meant if the amount repaid was substantial enough that the lenders would see it as an important factor of the situation, rather than the person being in a difficult situation and then defaulting, it was paid back, would they not see this as a person that could be depended upon and thereby changing the 6 or 7 year problems?

        • http://www.Credit.com/ Gerri Detweiler

          As I replied on the other comment it’s really a matter of building your credit scores back up. That will take time but it is possible, and if you are proactive you may see substantial improvement in the next couple of years. Eddie’s story may inspire you: I Lost 50 Pounds & Gained 67 Credit Score Points

          • john

            yes thank you. im really struggling with a decision here, persevere and pay off the debt, or accept that ive messed things up beyond repair in a reasonable time and with a worthwhile reward. my score went from around 960, to about 250, my life got turned upside down, i think im sunk to be honest.

          • http://www.Credit.com/ Gerri Detweiler

            Are you thinking about bankruptcy?

  • jrap

    Hi,

    I recently opened Macy’s card about two months ago and got approved with the American express Macy’s card. I made the purchases at Macy’s on the day I open the card and plan to pay off the whole balance at the end of the month. However, I come to find out last week that I paid to the wrong account because I have Amex Macy’s, which means I have the Macy’s store account and the Amex account. Unfortunately, I paid to the Amex, and not Macy’s account. Although, I was on time with my payment when I paid to the Amex account.

    The statement came in on May 10th. I paid on May 26th (to the wrong account). Due date was on June 10th. When I called the customer service on June 14th, they were able to remove the interest, the late payment fees, and was able to apply the money back to the store account.

    Here are the questions:
    1) Even if they removed the late payment, will this still affects my score?
    2) If it does, who do I contact to get it remove from credit report?

    • http://www.credit.com/ Credit.com Credit Experts

      Probably not. Most “late payments” are not posted until you are at least 30 days late. (And even if they were, 30 days is not as bad as 60 or 90.) And if it’s a one-time thing, you’re likely to have plenty of positive credit information to offset this slip-up. It’s always smart to keep an eye on your scores. though. Here’s how to monitor your credit score for free.

  • Angel

    Hello,

    I have a question. I have a car loan on my credit report that has been paid off for a few years, but unfortunately it has two late payments – one 30 days in 2009, and one 30 days in 2010. The item shows as negative on my credit reports due to the late payments, but is there a way that this can be taken care of? If I speak to them or send them a letter, can they can actually remove the late payments?

    • http://www.Credit.com/ Gerri Detweiler

      The could, but most lenders are reluctant to do that. They are getting quite old–the first one should be off next year and the other one a year later. Two old late payments shouldn’t have significant impact on your scores if you’ve since had a strong payment history.

  • Ankush Bassi

    Hi,

    I had an excellent credit score couple of months back; Close to 780-790 range (Range : excellent). I just missed one payment which was in 30-59 days late payment period. That had an extreme effect on my credit score and now my credit score is in low 740’s (Range: Good). I never had a missed payment before.
    But now this lower credit score is really effecting me a lot as I am in a market to buy a home and getting much higher rate quotes because my credit score slipped from excellent to good. So I have two questions as I have to secure a home mortgage in near future:

    1) Do you have any suggestion how can i repair my credit score quickly
    2) Or how much time it will take to to repair the damage of just one late payment

    Thanks

    • http://www.credit.com/ Credit.com Credit Experts

      Ankush —
      Unfortunately, the higher your score, the greater the damage. Time will help some, and so will other accounts in good standing. You can read more about what one late payment can do here:
      How Much Will One Late Payment Hurt Your Credit Scores?

  • Latoya

    Ok so it on your credit a 90 day late. How does it get off ? How long can it stay on ?If your credit is ruined for 7 years Is that the length?

    • http://www.credit.com/ Credit.com Credit Experts

      Latoya —
      How recent was it? A 90-day late is worse than a 60 or a 30, and how much it affects your score will depend on how many other accounts you have, how often it has happened and how high your score was to begin with. But positive history helps, and so does time. You can read more here:
      How Much Will One Late Payment Hurt Your Credit Scores?

  • Nick

    i have made my auto and bike loan on time but a coulpe credit cards 30-90 days late one has a charge off and the othere one i closed if i pay all my closed account off and pay my othere active cards off and keep my car and bike payment current will my score get better the reason for the lates i was in between jobs and fell behinde so what can exspect from this even tho i just cleared a bankrupsy and fell kinda in the same trap

    • http://www.Credit.com/ Gerri Detweiler

      Over time, Nick, your credit scores can improve. The negative information will become older, and provided you have positive credit references reporting on time. I am not going to say it will be easy, but it is doable. It would be helpful for you to have a credit card that is open, active, and paid on time. You may need to start with a secured credit card. These articles may help:
      I Lost 50 Pounds & Gained 67 Credit Score Points and How Secured Cards Help Build Credit.

      Paying off a charge off or collection account won’t immediately help your scores but it can prevent the debt from being sold to another collection agency, which would create a new collection account on your credit reports. Check the statutes of limitations before you make any decision: 7 Things You Need to Know About the Statutes of Limitation for Debt

  • lela

    Hello,
    i became 60 and 120 days past due on 3 Student Loans Almost 8 years ago. The accounts were handled and reported late by a student loan servicer who is no longer in business. Later on, they were transferred to my current servicer who i submitted a goodwill adjustment request, but got notification back from them that since they were not the ones to report it late, there is nothing I could do to get this adjusted. IS there anything else I can do? These late payments are effecting me and are the only thing showing late on my credit report. These loans have since then been gone into deferment as im currently in college.

  • Ashley

    Thank you for the article and info! I have had a wells fargo credit card for 9 years now, and just missed my first payment as I’ve all but left the bank and hadn’t checked my account online for awhile. I logged on to find my account was 32 days past due in the amount of $15, with a future due amount of $30. I paid the $45 in full and then realized they had dropped my credit limit from $6,000 to $750. When I asked why, they said it was due to an alert they received on my credit report. They didn’t know whether this “alert” had been initiated because of their own report of my account being delinquent or from something else, but they did have record (I finally got someone to tell me) of having reported the account 60 days delinquent – again, on my end it only showed 32, but there was no arguing it with them. Fed up with wells fargo, I tried to open an account with USAA, my primary bank, and was denied any kind of a credit card except a pre-paid, “credit-building” card. I was shocked, ran my credit report and found no alerts, no delinquencies (ever), and a credit score of 850. Is it possible wells fargo’s report of my apparent 60-day delinquency was damaging enough to cause this? And why can’t I see any evidence of this on my report? (I’m especially nervous because this is the first time I’ve ever been told I had anything less than great credit, and simultaneously I did just have a social security card lost in the mail… Maybe I’m being paranoid, though.) If my credit is temporarily thrashed thanks to wells fargo, how long can I expect this to last?

  • Brittany

    Good morning! Thanks for writing this. Advice desperately needed- I just found out I’m 30 days late on a gap Visa card. I didn’t find out via statement or email- my credit tracker notified me of a 30 point drop- yes 30! I called and paid the tiny charge of $36 (18 of which was a late fee) and spoke to a supervisor. He waived the late fee and said this should adjust my credit score back up- Is that true? I’m so mad that my perfect credit may be screwed over $18 that I forgot about- never received a call from gap before they knocked my score down.

    • http://blog.credit.com/ Kali Geldis

      Hi Brittany —

      The creditor (in this case, your Gap Visa card) can remove a late payment from your credit report by updating the information they’re giving the credit bureaus. This is a pretty common occurrence that creditors will extend to good customers who make a mistake every once in a while (some credit cards even advertise this as a feature!).

      As long as the late payment is removed from your credit report next time you check it, your credit score should return to its pre-missed-payment level. Hope that helps!

      • Brittany

        Thank you! I sure hope so- the representative on the phone thought it would reverse but he didn’t sound 100% sure- i’ve sent a follow-up email to customer service just in case. I couldn’t find any information online and was freaking out this morning because i’m looking to rent a house soon and this really messed up my score :/ Thanks for your response.

  • Megan Gray

    Hello,
    I have a 120+ late payment from 5 years ago. I had wrecked my car and had a baby shortly after that. I thought my gap insurance covered the $300 remainder and just found out about it this year. No debt collectors called me and it never went to collections. I paid it off immediately when I found out. But I am having issues finding a place to rent because my score is tanked from it. I have a car loan and a credit card at 39% utilization, but otherwise I only have a few late 30 day late payments from when my debit card (and car) was stolen when I was in basic training 6 years ago (no internet access so I didn’t know it was stolen until basic was through). Now that I paid off the debt, how fast will my credit repair? Is there any suggestions on how to repair it faster? I live in Colorado and rent jumped $250 a month now that my contract is over. I am worried about being homeless since It is outside of my income now. Kinda panicking.

    • http://www.Credit.com/ Gerri Detweiler

      Megan – It’s so hard to know without knowing the details of your credit reports. Generally paying off collection accounts or other negative information doesn’t automatically boost your credit scores. Did you ever try to dispute the late payments due to the fraud situation? If not, you may want to try. If they aren’t confirmed they will be removed. Read: A Step-By-Step Guide to Disputing Credit Report Mistakes

  • Vidya

    I Hv a pretty steady good credit score of 785 .
    Until recently when I had login problems and forgot to pay $200 on my credit score . I think 2 months into the same and I was called by discover saying my card was delinquent and my credit score had dropped to 684 . I paid the full amount right away . But how can I reverse this damage now . I have been Someone who always pays on time .

  • a55town

    Hi,
    I will likely go through a repo. soon and wanted to know how this will reflect on my credit report. I do have other accounts in great standing on my credit report along with another auto loan. I have never missed a payment, but trying to find out after I surrender the car over to the bank will it show repossession or 90 day late or both?
    I know credit scores want matter any more after the repo hit, but with me continuing to meet my other credit obligations how much damage will I take?
    Will this stop me from purchasing a home 2-3 years down the road?

    • http://www.Credit.com/ Gerri Detweiler

      A repossession is very negative and it will be reported for seven years. (If you are late in the months up to the repo those can be reported for seven years as well.) The main thing I’d be concerned about is what happens to the balance after you turn it in. Usually it can be turned over to collections–perhaps a year or two later, and you may be sued for the deficiency. I’d recommend you talk with a consumer bankruptcy attorney to make sure you understand the long-term implications and your options.

  • Robert Murphy

    HOW LONG DOES IT TAKE FOR A LATE PAYMENT TO AFFECT YOUR CREDIT?

    • http://www.Credit.com/ Gerri Detweiler

      As soon as it is on your credit report (usually within 30 days of the missed payment). it will be affect your credit scores–when they are requested.

      • Robert Murphy

        Thank you. So if you go into foreclosure after missing several payments you may not be able to rent because your credit score will be so low?

        • http://www.Credit.com/ Gerri Detweiler

          It is possible. A recent foreclosure may be the bigger problem. I assume most lenders are not going to want to see that on a prospective renter’s reports.

  • Ryan

    My first incident was in late winter of 2015. A representative from Best Buy called and informed me that I had a payment due. I was confused, as this was the first I had heard of it, but was able to make the payment over the phone and she kindly dropped late fees due to the fact that I had not received a notice and/or monthly statements. Since I am active military, there are often times I am gone from my address or unable to be reached so it was at this time I wanted to be enrolled in automatic payment deductions and gave my information with authorization so this would not happen again.

    Fast-forward to yesterday, July 7th, 2015, when I finally sat down with our loan officer to go over an offer on a new house my wife and I are purchasing. When we first got pre-approved for our loan, my wife and I had excellent credit. We always paid our bills on time and well above minimum payment. So imagine my shock and utter confusion when our loan officer informed me that we were no longer approved for a loan because of an account in delinquency for 30 days. That account was this Best Buy credit card that roughly $230 was still owed. I searched through every document I had, every email that was from their company and could not find one letter stating the delinquency of my account. I even called Time Warner Cable to ensure that no correspondence from Best Buy was being blocked from my email account. I also checked the USPS to make sure the same wasn’t happening to my mail.

    Through all of this, I remembered I asked to be enrolled in automatic deductions and called Best Buy credit services immediately. The representative told me that I had not been enrolled in automatic deductions, but yet my checking account had been put on-file earlier this year. I am very confused as to why, when I asked to be enrolled, I never was? The representative was also able to confirm with me other the phone that Best Buy had tried to call, but did not leave any voice messages. As stated before, I am an instructor for a Leadership Development Course for the Army and my phone is required to be off during the workday, which for me is 0540 to 2000. Without leaving any messages, my phone does not tell me my missed calls while it was off.

    I am irate that the previous representative that I spoke to earlier in the year did not enroll me in automatic deductions as I had asked. I had given all the necessary information to complete that enrollment and they failed me. I am now unable to purchase our home because of the report they filed with the credit bureaus. When I discovered this grievous error, I called and immediately made a $110 payment with the information I had on file with them…..What should i do?

    • http://www.Credit.com/ Gerri Detweiler

      Ryan – I would suggest you contact the CFPB’s Office of Servicemember Affairs to see if they can assist. If a CFPB complaint doesn’t help, please come back here and let us know and we’ll discuss other options.

    • Brittany

      I know how you feel- An $18 missed payment on a BabyGap credit card brought my score from excellent to fair. I was SO upset by this. How long ago did the Best Buy account go delinquent? I caught it the day it went on my credit report and called Gap immediately, paid it, and they removed the 30 days late mark from my credit report. I suggest trying that with Best Buy Credit Services- particularly because of your job requirements. I do not understand why companies no longer call and leave a message before ruining your credit score. Its such a racket. Good luck to you!

  • CMatt

    I know that I have been 30+ days late on my mortgage several times, but it does not show on my credit score. Any reason why this would be? I did refinance my mortgage a few years ago with a HARP loan…are they not allowed to report on those?

    • http://www.Credit.com/ Gerri Detweiler

      I am surprised those haven’t shown up. Count yourself lucky I guess!

  • Linnea

    What if i have made payment arrangements with a collection agency, and they are not auto deducting on the agreed upon dates? Not just a few days, but 3 weeks later on the first payment, which was to have been on 6/5, not taken until 6/24 and not another since? There should have been 4 taken by now and final pay off would have been 7/17? Do i have any recourse?

    • http://www.Credit.com/ Gerri Detweiler

      I am not aware that it would be a violation of the FDCPA but I am not an attorney. You could certainly consult one or file a complaint with the CFPB.

  • S Singh

    I have made all my payments on time. Recently i missed payment because of some error during setting up Autopay in my bank account. I have no late payment in any of my other accounts (CC, Car lease ). When i tried Quicken loans they are not ready to take it back citing “Federal Law” that they have to report any payment 30 days late. What are my options. I have worked hard to keep good credit and now i have a late payment in my account. Is there any law which Quicken loans is citing ?

    • http://www.Credit.com/ Gerri Detweiler

      I am going to email you.

    • Gene

      I have this same issue but with Wells Fargo on my auto loan. I have a 30 day late on that one account because my autopay with my bank expired and I didn’t realize it. I’m good with all of my other accounts but they won’t remove it. Anything I can do?

      • http://www.credit.com/ Credit.com Credit Experts

        You can’t force them to remove accurate information, but a 30-day late with an otherwise excellent credit record probably will not cause lasting damage. It can be frustrating if you are trying to apply for a big loan, though. And unfortunately, the higher your score is to begin with, the worse a single misstep can hurt. You can read more here: How Much Will One Late Payment Hurt Your Credit Scores?

  • Brittany

    I posted a few weeks ago and really appreciate the advice! Now I have a question related to my boyfriends credit…

    He has two old accounts that were unpaid, charged off, and then sent to a collection agency many years after the fact. These accounts were closed in 2007 and 2008 but sent to collections in 2013 (seemingly just before the 7 years was up). Now the bad payment history shows up in two places- original creditor account and collections account. Should the original credit account fall off by now? It seems like every time they “update” the account or sell it off, the seven years starts all over. What gives?

  • http://www.Credit.com/ Gerri Detweiler

    @J Barnes – can you please describe your situation?

  • lila22

    Hi – I have some consistent late payments of mobile phone bills of 7-10 days on my account. They are fairly small amounts of money around 20 to 30 pounds. How long do you think it would take to recover my credit rating if I set up a direct debit payment and it gets paid off on time every month?

    • http://www.Credit.com/ Gerri Detweiler

      Since you are talking pounds I assume you are in the UK, correct? Unfortunately we don’t have expertise in overseas credit reporting.

  • Kylie

    I recently missed a payment for mortgage shearly an oversight I was on honeymoon and forgot to transfer money from one account to another. I payed it 2 days late how will this affect me?

  • Kris

    Hello, I found this article very informative and wonder if I need to write to my creditor to remove a recent 30 day late payment – if that will help…? My issue is that within the past 6 months I have had one late payment over 30 days- oversight on my part, paid immediately upon discovery, did not receive my Macy’s bill electronically, account established in 1992, first and only late payment and carry no balance. One would hope that if I wrote to them, that they would honor my request but should I bother? Also in this time frame I have purchased and financed a new car (interest rate of 1.6%), my previous car was not financed, I paid cash for it and drove it for 13 years. I also refinanced my mortgage. I believe all of these things combined caused by credit score to plummet from 820 to 749 but I believe it’s mostly the Macy’s adverse reporting. Your advice is sought and welcome. Thank you.

    • http://www.credit.com/ Credit.com Credit Experts

      Kris —
      It doesn’t hurt to try. The multiple hard inquiries (for a refi and car loan, also would have dinged your score a little). That will be temporary, and the impact of an isolated late payment will fade with time. You can read more about what a single late payment can do here:
      How Much Will One Late Payment Hurt Your Credit Scores?

  • Alexa

    I might be too late. But I have late marks from last year when I was sick and had a limited income. Now my payments are all back to normal but these late charges are hurting me. They are accurate, i mailed letters to my credit cards for a goodwill adjustment and they refused because the lateness’s are accurate, Any suggestion on what else to do?

    • http://www.credit.com/ Credit.com Credit Experts

      Alexa —
      Glad to hear you’re back on your feet. The best you can do at this point is to pay on time and to keep balances low. Time (and positive credit history) will help. Here are some suggestions:
      How to Rebuild Credit

  • Marc

    Hi,

    I’m a currently a sophomore in college but I’ve been looking more into my credit score because I know how important it can be in life. I opened a Discover card in September of 2014 and have never been late on any payment in almost a year. However, I do utilize about $500 of my credit line which I know is bad for me and I intend to pay it off this summer. I also made a terrible decision to open an Amazon store card but i ran into some financial troubles and wasn’t able to pay off the credit card and was 60 days late. I have since paid off the credit card in full but my account remains closed and it still seems to be on my record. Should I contact the creditor and explain the situation or just deal with my decisions. I’m at like a 560 credit score which seems extremely low for someone with only a single 60 day delinquency.

    • http://www.credit.com/ Credit.com Credit Experts

      Marc —
      Unfortunately, if the information on your credit report is accurate, it can stay on your credit report for 7.5 years. The key will be what you do from here. The best way to improve your credit is to pay on time and to keep balances low (less than 30% of your credit limit, and lower is better). If you have student loans, repaying those as agreed will also help your score. Closing a card can actually hurt your score because it reduces your available credit, and thus the amount you owe vs. the amount of credit available, plus it reduces the average age of your credit. You would be wise to keep the card you have, even if/when you get additional cards. You can read more here:
      How Much Will One Late Payment Hurt Your Credit Scores?
      How to Build Credit the Smart Way

  • Leobat

    I just removed a 30 Day Late Payment from my credit report. Will my credit score go back to what it was before or less ?

    • http://www.credit.com/ Credit.com Credit Experts

      That is hard to predict. With all other things being equal, it should go up. But so much depends on when the credit is scored, what your balances are, whether you’ve recently opened a new line of credit and more.


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