Because of the method used to calculate FICO scores, a late payment affects each person based on his individual credit profile. Contributing to 35 percent of the calculation, however, payment history is the most important factor.
Factors
Even if two people have the same score, a late payment can affect them differently because of their credit profiles. Factors that contribute to the calculation include credit history, number of credit accounts, previous late payments and credit line usage.
Misconceptions
Many people wrongly assume that a late payment affects everyone's credit score in the same way. The higher your credit score, the more potential it has to drop. In an example given by FICO, a late payment for a person with a 780 score could drop the score 90 to 100 points, while a late payment for someone with a 680 score could drop the score 60 to 80 points.
Effects of Time
The negative impact of a late payment diminishes with time. If the late payment is just an isolated incident, you will begin to see marked improvement in your FICO score after just six months. After seven years, the late payment will no longer affect your score.
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