I will tell you exactly how long late payments will stay on your credit report once it is recorded there. Before I do that, it is appropriate for me to explain to you how and when late payments are recorded into your credit report.
Late payments are negative information and nobody really wants that. In reporting such payments to the credit bureaus, creditors will wait until 30 days after the date you are supposed to pay your debt for that month before they report it to the credit bureaus. Let me give you an example.
Let us assume that the date due for your bill to a creditor is January 1st. Even if you do not pay the creditor by January 29th, they will not report this type of lateness to the credit bureaus. But once it is February 1st and you still have not paid the creditor, then they will furnish the credit bureau with the negative information that you did not make the payment on time.
The rule I explained above on how and when past due payments are reported to the credit bureaus applies to departmental store cards, gasoline cards, mortgage loans and personal loans.
Now to the main topic of this article. Past due payments will stay on your credit report for 7 years. If the late payment account remains on your credit report 7 years after it was recorded, then you should send a dispute letter to the credit bureau that listed the entry to have it deleted.
The effect will last between 3 to 6 months on your credit report. What you should do to avoid the negative effect being entered in your account is to pay your bill at very latest before the 30day grace period expires.