How Late Payments Affect Your Credit Score (And How to Recover)

Payment history is the single most important factor in your credit score, accounting for 35% of your FICO score. Understanding how late payments affect your score can help you avoid mistakes and recover faster if they occur.

How Late Payments Are Reported

Payments are typically reported to credit bureaus in stages:

• Under 30 days late - Not usually reported
• 30 days late - First reporting, significant impact
• 60 days late - More serious, larger impact
• 90 days late - Severely damages score
• 120+ days late - May result in charge-off or collections

The Impact on Your Score

A single 30-day late payment can:

• Drop your score by 60-110 points
• Stay on your report for 7 years
• Affect loan eligibility and rates

The impact depends on:

• Your starting score (higher scores drop more)
• How recent the late payment is
• Your overall credit history
• Number of late payments

Strategies to Recover

1. Get Current Immediately

The first step is always to bring the account current. The sooner you do this, the less damage.

2. Request a Goodwill Adjustment

If you have a good history with the creditor, write a goodwill letter asking them to remove the late payment. Explain what happened and your record of on-time payments.

3. Set Up Payment Reminders

Prevent future late payments with:

• Automatic payments
• Calendar reminders
• Payment alerts from your bank

4. Focus on Positive History

Going forward, perfect payment history will gradually rebuild your score. The older the late payment gets, the less it affects your score.

5. Check for Errors

Sometimes late payments are reported in error. Review your reports and dispute any inaccuracies.

Prevention Is Key

The best strategy is prevention:

• Set up automatic minimum payments
• Keep a buffer in your bank account
• Use payment reminder apps
• Consider due date alignment with payday

One late payment can take years to recover from. Make on-time payments your top priority.