Late Payments & Negative Marks

When a late payment is reported

Most creditors do not report a payment as late to the bureaus until it is at least 30 days past due. Once reported, it can remain for up to seven years.

Severity of late payments

• 30-day late — typically a moderate to significant drop
• 60-day late — usually larger than a 30-day late
• 90+ day late — among the most damaging items short of charge-off or collection

Collections and charge-offs

If an account remains past due long enough, the creditor may charge it off and sell or assign it to a collection agency. Collections can stay on your reports for up to seven years from the original delinquency date — even after you pay them.

Major events

• Foreclosure — typically up to 7 years from the first missed payment
• Bankruptcy — Chapter 13 up to 7 years; Chapter 7 up to 10 years
• Wage garnishment — itself not directly reported, but the underlying debt usually is

What you can do

• Bring past-due accounts current as quickly as possible
• Request debt validation in writing for any collection
• Send goodwill letters for accurate one-time slips
• Dispute inaccurate marks with each bureau in writing