Here's What Happens When a Delinquent Debt Goes on Your Credit Report

Paying your debts is a good way to maintain a solid credit score. But when you're late making a loan payment or paying your credit card bill, that lateness could eventually show up on your credit report in the form of a delinquency.

You might think of a delinquent debt as one you blow off completely. But Experian considers a delinquency "a late payment that can appear on your credit report once you're 30 days or more past due on a debt." 

Worse yet, a delinquent debt will generally remain on your credit report for seven years. And during that time, you might end up with a lot less access to credit.

Why a delinquency matters

We're all human, and it's not such a strange thing to be late paying a bill from time to time. One thing you should realize is that credit card companies and lenders typically don't report late payments to the credit bureaus until you're 30 days late or more. 

So let's say you had a busy week and forgot to pay your credit card bill when you were supposed to. If you pay it seven days late, you might get hit with a late payment fee. But you probably won't end up with a delinquency on your credit report because you get a little leeway there. 

However, once you're 30 days late or more, that delinquency could easily show up on your credit report. And from there, it could drag your credit score down a lot. 

Your payment history carries more weight than any other factor when calculating your credit score. So if you're late with a bill, it reflects poorly on your credit history and sends a message to prospective lenders that you perhaps can't be trusted to pay your bills in a timely manner.

How to avoid a delinquency on your credit report

Sometimes, missed payments are a result of human error more so than a lack of money. So one of the easiest ways to avoid a delinquency is to set calendar reminders for when your various bills are due.

Often, though, a lack of money is the reason late payments occur. To avoid that scenario, try to maintain a fully loaded emergency fund. That way, you'll have cash reserves to tap so you can keep up with your bills at times when they're higher than usual.

What if a delinquency on your credit report is a mistake?

Unfortunately, this type of thing can happen. It's important to review your credit report regularly to make sure there aren't any errors working against you.

You'll find delinquent debts listed in the payment history section of your credit report. If you spot a delinquency you don't recognize and you think is not accurate, contact the credit bureau to dispute that information. Credit bureaus are required to investigate when consumers report that their credit reports contain erroneous information. 

A delinquency on your credit report could cause major damage to your credit score, and that's not something you want. So it's best to do what you can to avoid a delinquency. And if you spot something on your credit report that isn't accurate, report it at once. The sooner you do, the sooner you might get it wiped off of your credit report.