How Long Do Missed Payments Stay on Your Credit Report?

Credit cards

If you were late paying off credit card bills, auto loans, or other common payments in the past, you may be asking yourself “how long do missed payments stay on your credit report?” It’s scary to think about, but the truth is missed payments can remain on your credit report and visible on credit checks for up to seven years, even after you make good on them. This is just one of many reasons it’s important to take advantage of the Fair Credit Reporting Act, which entitles you to one free credit report per year. If you discover a missed payment was falsely recorded, you should absolutely dispute it. Learn more about how missed payments can affect your credit, below.

How Do Missed Payments Affect Your Credit?

The effect a missed payment has on your credit will vary depending on your specific situation.

  • The longer your payment is overdue or “delinquent,” the greater the negative impact will be on your credit score.
  • If you have multiple missed payments on your credit report, you’ll see a far more significant impact on your score.
  • Even though the delinquency will show up on your credit report for up to seven years, its impact on your credit score is greatest when it’s first recorded. Over time, the effect on your credit score should decrease.

Tips to Avoid Missed Payments

Seven years is a long time for a missed payment to show on your credit report. Thankfully, avoiding the situation in the first place is fairly simple:

  • Create a budget for yourself. When you follow a personalized budget that’s based on your income, it’s far easier to allocate enough money for all of your monthly payments. There are even apps you can use to create a budget if you need help!
  • Set up automatic payments. For some people, the main issue is not affording their monthly bills, it’s remembering to pay them in the first place. These days, the simplest solution is to set up automatic payments with your bank account. You can elect to have things paid in full each month, or stick to the minimum payment – you can always log in and pay off more if you’d like.
  • Set up monthly reminders. If you’d prefer not to have your financial information online, you can always use your computer, smartphone, or tablet to set up monthly reminders for each of your payment due dates.

Turn to Xpress Cash for More Financial Help

If you need additional advice on budgeting your money so you don’t miss payments or you’d like tips on raising your credit score, turn to Xpress Cash for help! We have multiple locations in Michigan, Wisconsin, and Idaho where you can get the help you need today. If you need an immediate solution to help make your payments, we also offer multiple quick loan options. Contact us today to learn more!