One Late Payment

One prevalent misconception in the credit industry is that a single late payment is no big deal.  The reality is, on-time payments are the single most important factor in the FICO formula. Research conducted by FICO shows that a single 30-day late payment on a mortgage can shave 75 or more points off of a consumer’s credit score. In addition, late payments remain on a credit report for two years. As a result, what may at first seem insignificant can have a major effect on a FICO score. 35% of your score is based on payment history. This is the biggest factor of the FICO algorithm.

If you had a high credit score before the missed payment, then the reduction in your score will be higher than if you had mediocre or poor credit. 700-plus scores can be dropped 100 points or more with a missed payment.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

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