How Do Late Payments Affect My Credit?

Missing a payment can happen for a variety of reasons – from simply forgetting to holding off due to a shortage in cash. No matter the reason, late payments can show up on your credit report and cause problems down the road. Here are a few things to know about late payments:

When does a late payment get reported?

Creditors generally wait until an account is 30 days past due before they notify consumer reporting agencies. If your payment is less than 30 days late, you may be subject to late fees from the lender but it will not appear on your credit report.

How long do late payments stay on a credit report?

Late payments stay on your credit report for seven years from the day your account became past due. Even after you catch up on payments, the late mark will remain.

How much will a late payment affect my credit?

Although late payments show up years after delinquency, credit scoring models place a much higher emphasis on recent credit behavior. So as time passes and you continue to keep up with payments and make sound financial choices, the impact of a late payment lessens.

To avoid late payments, try out Bill Pay in the City Mobile Bank app. Pay all your bills from one secure place, and schedule them for automatic withdrawal to make sure you never miss one.