A payment is late the day after your due date passes
Your credit card company considers a payment late starting the day after your statement due date. If your due date is the 15th and you pay on the 16th, that payment is late. The company will report it to the credit bureaus and it will appear on your credit report as a late payment.
Most card issuers give you a grace period of at least 21 days from the end of your billing cycle to pay without interest charges, but that grace period does not delay when a payment becomes late. A payment can be late for reporting purposes even if you have not yet been charged interest or a late fee.
The timing of when the payment actually posts to your account matters less than when the card company receives it. If you mail a check, the payment date is when the company receives it, not when you mailed it. If you pay online or by phone, the payment typically posts the same day or the next business day, depending on the time you submit it.
Key Takeaways
- A payment becomes late the day after your due date, regardless of grace periods or interest charges.
- Late payments stay on your credit report for seven years from the date you first missed the payment.
- Your card issuer can charge a late fee and raise your interest rate after one late payment, even if it is only one day late.
- Payments made by mail take longer to post than online payments, so mailing a check close to the due date increases the risk of lateness.
- Calling your card issuer before the due date to request a one-time extension or due date change may prevent a late payment from being reported.
How credit card companies report late payments
Card issuers report payment status to the three major credit bureaus — Equifax, Experian, and TransUnion — once a month, usually around the time your next statement closes. A payment that is 30 days late (meaning you have not paid by the 30th day after your due date) will show up on your credit report as a "30-day late" mark. A payment 60 days late shows as "60-day late," and so on.
The damage to your credit score increases with each milestone. A 30-day late payment typically costs you 60 to 100 points on a standard credit score. A 60-day late payment costs more, and a 90-day late payment costs even more. These marks remain visible on your credit report for seven years from the original due date of the missed payment.
Even a single late payment can lower your score enough to affect your ability to borrow money. Lenders use your credit report to decide whether to lend to you and what interest rate to charge. A recent late payment signals to lenders that you missed a payment obligation, which makes them less willing to take the risk.
Fees and interest rate increases that come with late payments
Your card issuer can charge a late fee as soon as your payment is one day late. The fee amount varies by card and issuer, but federal law caps late fees at $30 for a first late payment and up to $41 for subsequent late payments within six months. Some issuers charge less, and some offer a grace period before charging the fee, but you cannot count on either.
More costly than the fee is the interest rate increase. Card issuers can raise your interest rate — called a "penalty rate" — after a single late payment. This rate applies to your existing balance and any new charges you make. The penalty rate can be 10 percentage points higher than your regular rate, and it can stay in place for six months or longer.
If you have a promotional rate (such as 0% APR for 12 months), a late payment can end that promotion when ready. Your regular interest rate takes over, and you start accruing interest on the full balance at the higher rate. This is one of the most expensive consequences of a late payment on a card with a promotional offer.
The difference between late and delinquent
A payment is late the day after the due date. A payment is delinquent when it is 30 or more days past due. The terms are related but not the same, and the consequences differ.
Once your account is 30 days delinquent, the card issuer will likely contact you by phone or mail to collect the debt. At 60 days delinquent, the issuer may freeze your account and stop allowing new charges. At 120 days or more delinquent, the issuer may sell your debt to a collection agency or file a lawsuit against you.
A delinquent account is far more damaging to your credit than a single late payment. If you are behind on a payment, contacting your card issuer before you reach 30 days delinquent gives you more options to resolve the problem without severe consequences.
What to do if you miss a due date
If you realize you have missed your due date, pay as soon as possible. The longer you wait, the more damage accumulates. A payment that is one day late is better than a payment that is 30 days late.
Call your card issuer before the due date passes if you know you will be late. Some issuers will move your due date or grant a one-time courtesy extension without reporting the late payment to the credit bureaus. This is not may provide, but asking costs nothing and may prevent the late payment from appearing on your credit report.
If you have already missed the due date, call the issuer and explain your situation. If this is your first late payment with that card, you may be able to request that the issuer remove the late fee or not report the late payment. Card issuers have some discretion here, and the worst they can say is no.
How to avoid late payments in the future
Set up automatic payments for at least the minimum amount due. You can do this through your card issuer's website or app in minutes. Automatic payments remove the risk of forgetting a due date, and they may support a payment posts on time even if you are traveling or busy.
If you prefer to pay the full balance each month, set the automatic payment to the full statement balance. If you want to pay a fixed amount, set it to a number you can afford. You can always pay more than the automatic amount if you have extra money that month.
If you cannot set up automatic payments, put your due date in your phone calendar with a reminder three days before. This gives you time to make the payment before the important date. Pay online or by phone rather than by mail — online payments post the same day or next business day, while mailed checks can take five to seven business days to arrive.
How late payments affect your ability to borrow
A recent late payment makes it harder to borrow money at a good rate. If you explore for a mortgage, auto loan, or another credit card within a year of a late payment, lenders will see it on your credit report. Many lenders have minimum credit score requirements, and a late payment may push you below that threshold.
Even if you still may have access to for a loan, the late payment may result in a higher interest rate. A mortgage lender might charge you 0.5% more in interest because of a recent late payment. On a $300,000 loan, that difference costs you tens of thousands of dollars over the life of the loan.
The impact of a late payment fades over time. After two years, most lenders view it as less serious. After seven years, it falls off your credit report entirely. In the meantime, making all your payments on time will gradually rebuild your credit and reduce the damage from the late payment.
Frequently Asked Questions
Does paying late if I have a grace period still count as late?
Yes. A grace period protects you from interest charges, but it does not prevent a late payment from being reported to the credit bureaus. If you pay after your due date, it is late for credit reporting purposes, even if you are still within the grace period and will not be charged interest.
What if I pay online but the payment doesn't post until after the due date?
The payment date is when the card issuer receives it, not when it posts to your account. If you submit an online payment before midnight on the due date, it should be considered on time even if it takes a day or two to post. Check your card issuer's website for the exact cutoff time — some process payments submitted before 5 p.m. Eastern time as same-day payments.
Can a late payment be removed from my credit report?
Late payments stay on your report for seven years and cannot be removed just because time has passed. However, you can contact the card issuer and request a goodwill removal if this is your first late payment and you have a good payment history otherwise. Some issuers will remove the late payment as a one-time courtesy, though they are not required to.
Will one late payment ruin my credit score?
One late payment will lower your score, but it will not permanently ruin it. The damage is worst in the first few months after the late payment. As you continue to pay on time, your score will gradually recover. After two years of on-time payments, the late payment has much less impact on your score.
What happens if I ignore a late payment and don't pay it?
The debt will continue to grow as interest and fees accumulate. After 30 days, your account becomes delinquent and the issuer will contact you to collect. After 120 to 180 days, the issuer may charge off the account and sell it to a collection agency. A collection account on your credit report is far more damaging than a late payment and can affect your credit for seven years.