How Long Does A Late Payment Stay On Your Credit Report?

Of the many things that make up your credit report and credit score, late payments play a big part. If you are trying to rehabilitate your credit and get past some late payments, how long do you have to wait until they disappear from your report?

Late payments are a part of life. At some point everyone has accidently paid something late or at least come dangerously close. A late payment may not have a big impact on your credit score (it will have an impact) but if you made multiple late payments or habitually paid late that is very damaging to your overall credit.

How Long Does A Late Payment Stay On Your Report?

If you have ever made a late payment it will stay on your credit report for 7 years from the date it was reported. Each payment has its own 7 year clock on it before it drops off your report entirely. 

So if you have habitually paid late you will have to wait until your very last late payment reaches 7 years for your record to be clean and free of late payments. You can fight them with the bank if you can prove that the payment was not made late.

Why Does It Matter?

Late payments are a huge part of determining your credit score. If you have a lot of late payments on your credit report your credit score is probably going to be low.

The reason late payments matter so much is because it is a metric that reflects your reliability to creditors. If you were to apply for a loan from a bank they would look at your credit report and see that they would likely not be able to rely on you to pay it back on-time. Because of that they would likely pass on issuing you a loan.

To prove you are reliable to future creditors you want to have a good record paying back what you currently owe.

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