Can Late Payment Affect Credit Score

Can Late Payment Affect Credit Score

Paying bills on time is one of the most important aspects of maintaining a healthy credit score. But life happens — you might forget a payment, face unexpected expenses, or encounter banking issues that cause a delay. If you've made a late payment or are worried about missing one, you might be wondering: can a late payment affect your credit score?

The short answer is yes. A late payment can lower your credit score and leave a negative mark on your credit report that lasts for years. The extent of the impact depends on how late the payment is, what type of account it relates to, and your overall credit history.

In this article, we’ll explain how late payments affect your credit score in the UK, what counts as "late," how long the damage lasts, and what you can do to avoid or recover from it.

What Counts as a Late Payment

A payment is generally considered late if you fail to make the agreed payment by the due date set by the lender, utility provider, or credit card company.

There are different levels of lateness:

• A few days late: Often results in a warning or reminder, but may not be reported to credit reference agencies if quickly resolved

• 30 days late or more: Typically results in a missed payment marker on your credit file

• Multiple missed payments: Can lead to a default, arrears, or even legal action such as a County Court Judgment (CCJ)

Lenders usually report late payments to UK credit reference agencies such as Experian, Equifax, and TransUnion once they reach 30 days overdue, though this can vary.

How Late Payments Affect Your Credit Score

Late payments hurt your credit score because they signal to lenders that you may not be reliable in managing credit. The impact can vary based on:

1. How late the payment is
A payment that is one or two days late and quickly resolved may not be reported. However, if a payment is 30 days late or more, it’s likely to be recorded on your credit file and will affect your score.

2. Your previous payment history
If your record is otherwise spotless, a single late payment may cause a minor dip. But if you have a pattern of late or missed payments, each additional one worsens your score.

3. The type of credit
Late payments on credit cards, loans, and mortgages carry more weight than missed payments on smaller bills or mobile contracts, although any missed payment can still be harmful.

4. Time since the missed payment
The effect of a late payment reduces over time, particularly if your recent credit behaviour improves. However, the record stays visible for six years.

What Late Payments Look Like on Your Credit Report

Your credit report shows a payment history for each account. Late payments are usually marked with numbers:

• 0: Paid on time

• 1: 1 month late

• 2: 2 months late

• And so on

A missed payment will appear alongside the name of the creditor and the date it was reported. If the account goes into default, this will also be recorded and have a more serious impact.

Real-World Example

Tom forgot to pay his credit card bill by the due date. It was five days late, but he paid as soon as he realised. His lender did not report the delay, and his credit score remained unchanged.

On the other hand, Maria missed her loan payment and only paid it after 35 days. The lender reported a missed payment to Experian, and her credit score dropped by 60 points. She also noticed that her interest rate on a new credit card was higher than expected due to the recent negative mark.

How Long Do Late Payments Stay on Your Credit Report

A late payment stays on your credit report for six years, even if you later bring the account up to date. The record won’t be removed just because the debt is paid — although the fact that you cleared it will be noted.

The good news is that as the late payment ages and you maintain good credit behaviour, its impact on your score diminishes.

Can You Remove a Late Payment from Your Credit Report

You cannot remove a correctly reported late payment, but there are some exceptions:

• If the late payment was reported in error, you can raise a dispute with the credit reference agency

• If there were exceptional circumstances (illness, bereavement), some lenders may agree to remove the mark as a goodwill gesture, though they are not obligated to do so

• Always contact your lender first to discuss your situation

How to Avoid Late Payments

• Set up direct debits for minimum payments on credit cards and loans

• Use calendar reminders or payment apps

• Keep an emergency fund to cover bills if income is delayed

• Monitor your accounts regularly to avoid surprises

• Check your statements for due dates and any changes in terms

What to Do If You’ve Already Missed a Payment

• Pay it as soon as possible to limit the damage

• Contact the lender to explain the reason for the delay

• Ask if the mark can be removed (especially if it’s your first mistake)

• Focus on making all future payments on time to rebuild your credit score

Final Thought

A late payment can affect your credit score, especially if it goes past 30 days and is reported to the credit reference agencies. While one late payment is not the end of the world, multiple missed payments can seriously damage your financial reputation and limit your access to credit in the future.

The best approach is prevention — stay organised, set up reminders or direct debits, and prioritise keeping your accounts in good standing. If a mistake does happen, act quickly and responsibly to minimise the long-term impact.