While one late payment won't define your financial future, it can affect your credit report and score in ways that aren't always obvious at first. Missed or late payments can stay on your credit report for up to six years, which is a long time if you need to take out credit during that period.

Whether you're building your credit, trying to improve it or simply want to avoid surprises, knowing how credit works can help you control your finances.

In this comprehensive guide, we'll look at:

• How late and missed payments are recorded on your credit report

• How long a missed payment stays on your file

• The difference between the credit score and the report

• Ways to prevent late payments in the future

• Steps to take to recover and build your credit after a late payment

A late credit card payment is when you don't make at least the minimum payment by the due date shown on your statement. This means that if your payment was due on the 20th and it arrives on the 21st, you’ve missed your contractual deadline. At this point, your card provider may charge you a late feeopens in a new tab (typically £12).

This delay can happen if:

• You forget to make the payment

• A Direct Debit fails

• Your payment is too close to the deadline

Some lenders may allow a short grace period, but you shouldn't rely on this.

• Arrears: These are payments that are overdue.

• Missed payment marker: A record showing a payment wasn't made on time. 

• Default: When payments are seriously overdue (usually three to six months after continuous missed payments).

The impact of late payments can vary depending on the situation. But before we explore that, let’s first look at what a credit score is:

Your credit score is a number – usually three or four digits – that represents how you've managed credit in the past. It acts as a guide to lenders, who use it to help decide whether you’re a reliable borrower. If your score’s healthy, it points to you keeping up with repayments. This means you're more likely to get a lower interest rate and higher credit limits.

In the UK, there are three main credit reference agencies: Experianopens in a new tab, Equifaxopens in a new tab and TransUnionopens in a new tab. You might find that your score on Experian is 'Fair' while TransUnion says it's 'Good'. This is because no two agencies use the same criteria or scoring scale. Each agency receives data from your lenders and uses its own formula to calculate a number.

As we explain in our guide on why your credit score is importantopens in a new tab, lenders don't actually see these 'points'. Instead, they look at your credit report.

Your credit report (also referred to as a credit file) is a detailed record of your borrowing and repayments. Your credit score is based on the information in that report and serves as an easy check for credit providers.

If a late payment marker is added to your credit report, a number (usually a '1' for one month late) is placed next to that account, making you look riskier to lenders.

Your provider (like Capital One) is the one that tracks your daily activity and is the only one that knows exactly when your due date is. If you’re a day late, your provider notes this internally. They’ll probably charge you a late fee and send you a reminder.

Most providers don't report you to the credit agencies the very next day. They usually wait until the end of your billing cycle or give you a short 'grace period' to put it right.

Many UK lenders have an internal reporting window, which is often around 14 days.

While you’ll still be charged the £12 late fee and interest immediately, if you clear the balance within those first two weeks, you might avoid the long-term credit report marker. Lenders usually wait until your next statement cycle to report the status of your account to the agencies.

Make sure to double check whether you have this grace period for your credit card, as it doesn't apply to all of them and you might be charged interest right away.

You shouldn’t count on a grace period though, and if possible always pay in advance of your due date. 

If you go beyond the grace period and hit the 30-day mark without paying, your provider sends a data file to the credit reference agencies stating that your account is in arrears.

The credit reference agencies file the information that the lenders send them. Once the agency receives the data from your provider, they place a '1' on your credit report. The referencing agency's algorithm then looks at that new '1' and automatically adjusts your credit score.

As well as your credit score potentially dropping, lenders can see the missed payment marker for six years. The impact is usually greater if the payment is more than one month late, you've missed payments before, or you have a limited credit history.

Your credit score doesn't stay down for six years. While the marker remains visible, its level of importance decreases. If you miss a payment today, your score might take a sharp dip. But by showing 12 months of perfect, on-time payments, the algorithm sees that you've regained control. Most people see their score begin to change within six to 12 months of consistently managing credit in a positive way.

Even if you've missed a payment, it's not too late to improve your credit score. A good place to start is making all future payments on time and in full, if you can afford to. This shows lenders that you’re managing credit responsibly. 

You can also:

The credit utilisation ratio is the percentage of your total available credit you’re using. Lenders generally prefer to see a lower level of credit utilisation. Keeping your balance well below your limit can help show responsible use.

If you apply for lots of credit products in a short period, it can look like you’re struggling financially, so you might not be viewed as a reliable borrower. 

Simple errors like having the wrong address on your credit report can affect your score. Make sure you thoroughly check your report so that it's accurate.

Monitor your score with CreditWiseopens in a new tab. You’ll be able to see your TransUnion score, and use the Score Simulator to see how your score could bounce back over time.

Using a credit cardopens in a new tab is one way to help you build your credit score back up. Take a look at the Capital One Classic Card, which could be suitable for people with a lower score. Remember to check if you're eligible using QuickCheckopens in a new tab, and remember that not using your card responsibly could harm your credit score.

Don't risk a hard search by applying for cards right away. Eligibility checkers (like our QuickCheck) use a soft search to tell you with 100% certainty if you'll be accepted before you apply and won’t affect your credit score.

A few small changes can help you stay on track:

• Manage your payments and keep track of your due dates in your card provider’s appopens in a new tab 

• Set calendar reminders a few days before your payment is due

• Decide whether to stagger payments or have them all leave your account around the same time

• Check your balance regularly 

• Consider setting up a Direct Debit in the app. Automatic payments are one of the most reliable ways to help avoid missing a payment altogether.

Checking your statement regularly makes it easier to spot issues early.

• Look at the summary box for fees and charges, and flag anything out of the ordinary to your provider as soon as you can.

• Review the payment due date and minimum amount. Keeping on top of your deadlines helps you see where you might miss something.

• Double check any recent transactions and payments that you've made. If you see a late payment charge, compare the payment date with your due date to confirm what happened.

If something doesn't look right on your statement, try to act quickly.

• Contact your credit card provider as soon as possible.
• Explain what you think is wrong.
• Share any evidence you have, like bank records.

Mistakes can happen, and raising the issue early gives it the best chance of being resolved. If you see a mistake on your credit report, get in touch with the credit reference agencies, who can investigate on your behalf.

Knowing what feesopens in a new tab apply helps you avoid unexpected costs. Here are some to be aware of:

• Cash advance fees: Charged when withdrawing cash, often with interest from day one
• Balance transfer fees: Usually a percentage of the amount moved

Sometimes a missed payment happens because of a major life event like redundancy, illness or a family emergency. While you can't usually remove a factual missed payment marker, you have a legal right to add a Notice of Correction (NOC).

It’s a short statement (up to 200 words) that’s attached to a specific entry on your credit report. When a lender looks at your file, they are legally required to read this note. It allows you to explain the context behind the numbers.

1. Draft your statement

Keep it under 200 words and factual and non-defamatory. For example: "In January 2026, I was hospitalised and unable to manage my accounts for two months. Since then, I have cleared all arrears and maintained a perfect payment record."

2. Contact the three credit reference agencies

You’ll need to contact Experian, Equifax and TransUnion individually, as each holds its own version of your report. Check the process required for each agency and use their support service if you need to ask any questions. The agencies have 28 days to review and add your notice.

Adding a Notice of Correction will remove you from automatic credit decisions. Someone will manually review your application, which can slow down the process, but it could be the difference between getting a yes or no for credit.

If you've missed payments and want to find a way to build your credit, Capital One offers a choice of cardsopens in a new tab that can help you build your credit history over time when used responsibly. Just remember, not using your card responsibly could harm your credit score. 

When you're ready, use QuickCheckopens in a new tab to see if you're likely to be accepted.

34.9% APR representative variable. T&Cs apply.

If you’re having difficulty affording payments or you’re worried you might miss one, don’t hesitate to ask for help. You can find lots of helpful resources and information on our Money Worriesopens in a new tab page.