How Long Do Late Payments Stay on Credit Reports?

Every installment is recorded in your credit report, which hurts the late payment. One single late payment can plunge a hundred points in credit score.

A lower credit report gives creditors a bad impression, resulting in higher interest/premium and mortgage rates. Late payment of EMI has a direct impact on your credit score.

Avoid late credit payment
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Impact of Late Payment

If you pay EMI within thirty days with a late fee, your credit score remains unaffected. But if it happens too often, it will hurt your credit report. A payment after thirty days causes a slump of hundred points.

One late payment has a minimal consequence on credit score long-term. If the payment is ninety days late, the credit score would be impacted for seven years; once a customer fails, he is likely to do it in the future. The result is a further plunge in credit score.

A default for one hundred-twenty plus days is generally “charged off”; sold to a third-party collection organization. The whole procedure is documented in your credit report tumbling the score further.

The negative impact of late payment remains in the credit report for seven years after the initial late payment. The credit score gradually rises if you consistently pay the dues on time.

Late Payment Removal Procedures

Goodwill adjustment

This is the easiest step, but functionality depends on the customer’s previous payment history. Write a goodwill letter to the creditor explaining the reason for late payments, and ask for a goodwill adjustment. In other words, request them to eliminate the late payment record from the credit score out of compassion.

While writing the letter, use a formal tone and address them with respect. Acknowledge your error and express the cause with honesty; you can see the format on the Budgetable website.


Write a letter to the creditor asking to remove the late payment from the credit report and opt for an auto-debit from your bank account. This feature entitles the creditor to automatically deduct a certain amount on a specific date from your bank account.

You do not need to remember the date for payment and just maintain the amount that would be deducted from your bank account.

Request for delete letter

If the previous payment history is not satisfactory, a goodwill letter will likely be rejected. Instead, you can request the creditor to eradicate the late payment record from the credit score instead of a fee.

State in the letter you are willing to pay the dues with interest and, in exchange, remove the late payments from the credit report. If they accept these terms within a specific time, the late payment record will be removed.

Credit report


Occasionally there could be an error in your credit report; if you think there is misappropriation, request a credit report from the credit score bureau and reconcile it. Otherwise, you can employ a credit repair company to check your credit report with all credit rating companies. If you find any erroneous entry, write a letter to the credit bureau to rectify it and remove a late payment from your credit score.