How long do late payments stay on your credit report?

The financial advisors ask you to avoid making late payments. This is because, as you make late payments these gets listed on your credit report and also hurts your credit. Now, you should ask “how long do late payments stay on your credit report”. These late payments are there to stay on your credit report for 7 years.

Late payments on your credit report

Not all late payments are of the same kind and not all late payments hurt your credit in the same way. But all of the negative items in general stay on your credit report for 7 years. Even if you make a single late payment it will get listed on your credit report and hurt your credit score. However, the negative impact of the listing lowers after more or less three years. In the mean time, you need to repair your credit. You will have to try and lower the negative impact of the missed payment by making on-time payments on regular basis after this.

If you miss payments and if it gets listed on your credit report, you won’t be able to remove the listing as such. The only thing that you can do is request the creditor to remove the listing in lieu of the payment. Not all creditors agree to remove the negative listing though some may and this process is known as the “Pay for delete” or PFD.

However, if the creditors do not agree to PFD, the negative listing is supposed to drop off after the 7 years. Another thing that you need to know about the missed payment is that after you make the payment, you should again check with your credit report to find out if the payment has been reported correctly by the creditor. Though making the payment won’t be of much help for your credit score, still if it’s reported correctly, the other creditors and lenders or the new ones will at least get to see that you have tried to pay off the debt.

Many people also make the mistake of mixing up the Statute of Limitations (SOL) with the length of time a negative listing or the missed payments are going to stay on the credit report. However the two of these are not the same thing. The SOL is the time limit within which the creditor or the lender can sue you for non-payment of the dues and the SOL varies from state to state. However, the length of time for which the negative listings are going to remain on your credit report is always in common 7 years.