Is one late payment bad for my credit score?


We talk about what exactly are late payments, how do they affect your credit score, if one late payment affects your credit score badly and, how many late payments does it take before the bank forecloses your collateral property. 

Late Payments & Credit Score

Many people jump at any chance to own a credit card, but hardly think hard about the consequences of monthly payments (or installments, as it is known in some places). There are times when even the best of us forget to pay the monthly payments and this can affect your credit score.

This blog post is for anyone who has just his/her first late payment, someone who always diligently paid their fees or anyone in between.

What is considered a late payment?

what is a late payment

Late payments are basically a monthly credit or loan payments that ought to have been paid by a particular date, but haven’t, for whatever reasons.

3 Consequences of late payments


Some obvious consequences of late payments can be:

late payments credit score

How do late payments affect credit score?

Late payments can affect your credit score in a variety of ways, but as far as we know, the results vary based on the following factors:

How many days has it been since the due date?

If your due date was three days ago, and you realized it within those three days, then you don’t really have to worry about it.

Technically, you have 30 days for paying all your dues, and if you pay within that period, then your late payment does not get reported to the CRAs.

how does late payments affect credit

How great is your credit?

Do you have an excellent credit? Then there are chances of having a drastic dip of 100 points at least. That is, if you have crossed the 30 day’s “grace” period and haven’t paid your dues yet. Or if you crossed the 60 days time and you have never had a late payment before.

If you have a credit score somewhere 600, then a late payment could lower your credit score by only 60-80. This is because CRAs have a very complicated calculation system to predict which person can possibly become delinquent. 

Is one late payment bad for my credit score?

Well, if this is your first late payment and you have never not paid your dues before 30 days time period, then your credit companies may over look it. 

If you have, however, crossed that 30 days time period, you can write a sincere request to your companies and assure that this won’t happen again. The only thing to keep in mind is that when you say that you won’t let this happen again, you keep your word.

is one late payment bad

How long does a late payment affect your credit score?

Let’s say you haven’t tried requesting a removal of the late payment from the credit report. Then this one late payment can, firstly lower your credit score by 60 – 100 points, and if late payments are your habit, then your late payments come up in your credit score. And they stay in your report for 7 years. 

And if things take a worse turn,then after 90 days of consistent non-payment of dues, your account is considered “charged off”. 

Read More: How long does negative info stay in my credit report?

How many late payments before foreclosure?

If you have been having difficulties in paying your monthly installments, the first thing you must do is call your bank and renegotiate for a financing option which works for you. If the late payments go on for 90 days, your account is charged off and can also be foreclosed.

What basically happens in a foreclosure is that the collateral you used against taking the loan is taken by the bank. That means that if you used your house as a collateral, and if you are unable to pay your car payments, during foreclosure, the bank takes ownership of your house.


The best course of action for late payments would be to send up automatic payments to take place from the checking account. You’ll just have to make sure that you have sufficient balance in your account every time. 

Other than that, you can keep as many reminders and alarms as you please to make sure you don’t get a late payment.



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