Wednesday, March 26, 2008

How Long Does a Late Payment Remain on Your Credit Report?

A single late payment on your credit report can make you too risky in the eyes of creditors, according to The Motley Fool. This can affect your credit for years after the late payment.

Identification

    Negative information on a credit report, such as late payments, stays there for seven years, according to Credit Info Center. Credit reports list late payment accounts based on the date of the bill.

Considerations

    If your late payment leads to a default, or if the creditor writes it off as non-collectable, the negative mark can stay on your record for as long as state law allows, according to the Credit Info Center. In New York, for example, a resolved collections account stays for five years.

Tip

    Review your credit report to ensure the accuracy of the late payment, including the date and amount, suggests The Motley Fool. You might be able to have the late payment removed from your credit report if a dispute investigation finds it to be an error.

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