Missing a payment might not seem like a big deal at the moment, especially if you’re only a few days late or it was an honest mistake. But when it comes to your credit score, even one missed payment can have a surprisingly harsh impact.
Your payment history makes up the largest portion of your credit score, and lenders view late payments as a red flag. But don’t panic just yet. While the consequences are real, there are also clear steps you can take to recover quickly and rebuild your credit over time.
What Happens to Your Credit Score After One Missed Payment?
If you’ve missed a credit card, loan, or mortgage payment, the consequences depend on how late the payment is. Most lenders won’t report a missed payment to the credit bureaus unless it’s at least 30 days overdue. If you’re just a few days late, you may only incur a late fee, but your credit score likely won’t take a hit just yet.
Once you pass that 30-day mark, though, it’s a different story. The late payment is reported to the major credit bureaus—Experian, Equifax, and TransUnion—and that single mark can cause your credit score to drop anywhere from 60 to 110 points, depending on your credit history. The better your score was to begin with, the more dramatic the drop may be.
And the pain doesn’t stop there. If the payment goes unpaid even longer, say 60, 90, or 120 days, it continues to be reported and damages your score further. Eventually, the account could be charged off or sent to collections, which creates an even deeper dent in your credit profile.
How Long Does a Missed Payment Stay on Your Credit Report?
Once a late payment is reported, it can stay on your credit report for up to seven years from the date of the original delinquency. That may sound like a lifetime, but the good news is that the impact of the late payment lessens over time, especially if you’re consistent with on-time payments moving forward.
Lenders are more forgiving of a single late payment if it’s clearly an isolated event rather than part of a pattern. A missed payment from last month will weigh more heavily than one from five years ago, especially if you’ve built a solid payment history since then.
Why Payment History Matters So Much
Your payment history makes up 35% of your FICO credit score, the largest single factor in your score’s calculation. It tells lenders whether you’re reliable about paying back borrowed money. Even if everything else in your credit profile looks good—low credit usage, long credit history, diversified accounts—a missed payment can still lower your overall score significantly.
This dip can affect your ability to qualify for new credit, increase your interest rates, or even hurt your chances of renting an apartment or getting a job, depending on the employer.
How to Recover from a Missed Payment
The first step in bouncing back is to pay the missed amount as soon as possible. If you’re still under 30 days late, you may be able to avoid having it reported at all, so act quickly if you catch the mistake early. If it’s already been reported, here’s how to get back on track:
Catch Up and Stay Current
Once the payment is made, commit to staying current from this point forward. The longer you go without any new missed payments, the more your score will begin to recover. Setting up autopay or payment reminders can help prevent future slip-ups.
Contact Your Lender
If you’ve been a long-time customer in good standing, call your lender and ask if they’ll consider removing the late payment from your report. Some lenders offer one-time forgiveness policies, especially if the late payment was due to a temporary hardship or honest mistake.
Check for Errors on Your Credit Report
Sometimes, late payments are incorrectly reported. Request a free credit report from all three bureaus (you’re entitled to one free report from each bureau annually via AnnualCreditReport.com). If you find an error, file a dispute with the bureau to have it corrected.
Focus on Building Positive Credit Behavior
Moving forward, the best thing you can do is prove that the late payment was a one-time blip. Pay every bill on time, keep your credit utilization low, and avoid applying for too much new credit at once. Over time, your score will rebound and possibly even improve beyond where it was before.
Consider a Secured Credit Card or Credit Builder Loan
If your score took a significant hit, it might help to open a secured credit card or a credit builder loan. These tools are designed to help you rebuild your credit responsibly and report on-time payments to the credit bureaus.
One Mistake Doesn’t Define You
It’s easy to feel discouraged when you see a dip in your credit score from a single missed payment. But the key is to act quickly, understand what went wrong, and take steps to prevent it from happening again. Credit recovery takes time, but it’s absolutely possible with consistent effort and smart financial habits.
Have you ever had a missed payment affect your credit score? How did you recover—and what tips would you share with others going through the same thing?
Read More:
7 Simple Ways to Eliminate Credit Card Debt Once and For All
Need to Build Credit? These Simple Hacks Will Boost Your Score!
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
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