How Late Payments Affect Your Credit Score?
Making on-time payments is among the most significant factors affecting your report, and missing a payment can affect your credit score negatively.
If you have a decent credit score, a late payment that’s over 30 days past due can reduce as much as 100 points off your current score. However, if your score is already low, you won’t lose as many, but late payments can still affect your credit score.
Either way, a late payment can stay on your credit report for seven years. Although late payments will automatically drop off your credit report after the allotted time and will no longer affect your score, expect your chances of getting new loans and credit accounts to plummet in the seven-year duration.
That’s why you need a credit score improvement – fast.
How Late Does a Late Payment Affect Credit?
According to federal law, lenders can’t report late payments to credit bureaus until 30 days past due. Having recently overlooked bills won’t affect your credit as long as you pay before it reaches 30 days past due. However, even if you pass the set date, you can resolve the issue by working with the right professionals.
How Long Will It Take to Improve My Credit Score?
If a missed payment has reduced your credit score, expect your score to go back to its original amount in a couple months or so. However, several late payments will take longer to recover fully, with some lasting over several years – affecting your credit score big time and long term. Meanwhile, it may take even longer for more severe problems like being late on bigger loans like mortgage payments.
But once these late payments get removed from your credit report, you should be able to restore your original score. Working with the best credit improvement companies, like us at The Oasis Firm, can help you recover your credit score in as little as a few months.
How We Can Help
If you’re interested in discovering how to remove late payments from your credit report and fix your credit report, we at The Oasis Firm can assist you. We can help by asking your lender to take the late payments off your credit report, removing the information at the source so it won’t come back later.
let our years of experience and passion for education empower your financial freedom.