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Late payments generally only make it onto your credit report if they’re late for more than 30 days. Once a payment is late for 30 days, the creditor will likely report it to the credit bureau, where it will stay for seven years from the date of the first delinquent payment.

Because late payments can have a negative impact on your credit score, it’s best to avoid them when possible. Here’s what you need to know about this important topic.

What Is Considered a Late Payment?

Most accounts have a grace period after the due date where the lender will accept payment without any penalty. The exact length of a grace period will depend on the terms of your credit card or other account, but 21 days is common.

After the grace period, your lender may charge a late fee or make other changes to your account. Once your account is 30 days or more past due, your lender will typically report it to the major credit bureaus.

When Do Late Payments Fall Off a Credit Report?

In most cases, it will take seven years for a late payment to fall off a credit report. Even if you bring your account current after the late payment has already been reported to the credit bureaus, it will still show up on your credit report for seven years after the first late payment. This is why one of the top credit card rules is to make payments on time whenever possible.

One exception to this can be paid medical debt and medical debt under $500, but guidelines are in flux, so it can be worthwhile to do your own research on this topic.

How Different Credit Bureaus Handle Late Payments

Each credit bureau has its own proprietary way of analyzing your information and calculating your credit score. A late payment could have a more significant impact on one score than on another. For example, the VantageScore vs. FICOScore currently gives a bit more weight to payment history. This is one reason why your credit score may vary among the different bureaus, and why your VantageScore could be lower than the digits provided by FICO®.

Recommended: When Are Credit Card Payments Due

How Late Payments Affect Your Credit Score

One of the consequences of a credit card late payment is that it will have a negative impact on your credit score.

Your past payment history is one of the biggest factors in what affects your credit score. As such, if you have a significant amount of late payments on your credit report, it will be tough to have an outstanding credit score.

Short-Term vs Long-Term Credit Score Impact

Late payments can impact your credit score in both the short and long term. Short-term consequences can include late fees and potentially increased interest rates from your lender. Long-term impacts of late payments could be a drop in your credit score, difficulty getting loans or credit, and even having the amount you owe turned over to debt collection.

How to Remove Late Payments From a Credit Report

It’s difficult if not impossible to remove a late payment from your credit report — unless it was reported in error.

However, the only way to find out if a late payment is reported in error is if you regularly review your credit report. If you have documentation that shows that you made the payment on time, you can contact the credit bureau and ask them to update your credit score and credit report.

What Are Acceptable Reasons for Late Payments on Your Credit Report?

To qualify as an acceptable reason for a late payment on a credit report, there usually must be unforeseen circumstances beyond your control, such as medical emergencies, job loss, or natural disasters. Administrative errors by the creditor can also sometimes be a valid excuse. Some creditors may also consider billing disputes or legitimate errors as acceptable reasons. You may be able to manage the impact of these kinds of late payments and fend off a credit score drop.

Goodwill Adjustment Letters

If any of the scenarios above apply to you and your credit report, you might write a goodwill adjustment letter. In this kind of letter, which may also be referred to as a late payment removal letter, you request that a creditor who reported your late payment(s) remove this entry from your credit reports. While not guaranteed to work, it could play a role in helping you get rid of the mark that is negatively affecting your credit.

Requesting a Pay-for-Delete Agreement

Another option if you have a late payment on your credit report is to negotiate with the creditor or collection agency. In this case, you are contacting the party you owe money to (usually in writing) and offering to pay a sum to settle the debt and have the negative mark completely removed from your credit report. Again, this method is not guaranteed to work, and there can be legal facets to it, which can add to the complexity of this undertaking.

Recommended: Ways to Manage Your Money

What Can You Do to Minimize the Impact of a Late Payment?

Say a late payment pops up on your credit report. Maybe you got busy with work and your family or ran short on cash. Whatever the case, if you’re willing to do the legwork, there are a couple steps you can take that could potentially minimize the impacts of a late payment.

Negotiate

One option you have for minimizing the impact of a late payment is to negotiate with your credit card issuer. This will generally be more effective if it’s only been a short time since your payment was due or if you have not had late payments previously.

For example, your lender may be willing to waive any late fees or penalty interest if you enroll in autopay from your checking account and/or pay any past-due balance. Contact customer service, and see what can be worked out.

Dispute Errors on Your Credit Reports

If it’s been more than 30 days and your lender has already reported the late fee to the credit bureaus, it can be difficult to remove it from your credit report. However, if you have documentation that you made the payment on time, you can contact the credit bureaus to have them update and correct your credit report.

This is why it is important to understand how checking your credit score affects your rating — generally when you are reviewing your own credit report, it does not impact your credit score. Regularly reviewing your credit report for errors and discrepancies is a great financial habit to have.

Catch Up on Payments as Soon as Possible

Another smart move is to address late payments ASAP. This should be a priority to protect your credit score. Many people have moments when they miss paying a bill on time, such as when on vacation or waiting for a payment for a gig job. Stay on top of payment due dates (see below) and, if and when one happens, do your best to take care of it immediately.

Recommended: How to Deposit a Check

Guide to Avoiding Late Payments

Since it is difficult if not impossible to remove late payments from your credit report once they’re there, the best course of action is to avoid late payments in the first place. Here are a few tips on some of the best ways to avoid late payments.

Set Up Autopay

One great way to avoid late payments is to set up autopay from a checking or savings account. You can customize your autopay payments to cover the minimum amount, the full statement balance, or anywhere in between. You’ll just want to make sure you have enough funds in the attached account to cover the balance.

Set Payment Reminders

If you can’t or don’t want to set up autopay on your accounts, another option is to set up payment reminders. That way, you can get an email or text message a few days before your payment is due. Getting a reminder can help you remember to make the payment on or before its due date.

Change Your Payment Due Date

Sometimes the due date for a particular loan or credit card doesn’t line up conveniently with when you have the money to pay it. You might find that your credit card due date always seems to come a day or two before payday. If that’s the case, many lenders allow you to change your payment due date to one that’s more convenient for you.

Consider a Backup Payment Method

Another way to make sure bills get paid on time is to use a backup payment method. This is typically applicable for bills you pay online or in app, including those you pay on a recurring basis, say with autopay. You can usually go to your account settings or billing management section of a platform you’re using, and add, say, a credit card or bank account to serve as a secondary source of funding should the first one be inadequate.

The Takeaway

Paying your credit card and other debts on time can be one of the best ways to positively impact your credit score. Late payments can be reported to the credit bureaus as soon as 30 days after the due date. Once they’re on your credit report, they will stay there for seven years from the date of the first late payment. Consider your bank’s capabilities when avoiding late payments: The ability to set up autopay, have overdraft protection, and other features can play a role in avoiding this issue as well.

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Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Can I get late payments removed from my credit report?

Typically, once they’ve been reported to the credit bureaus, you can only get late payments removed if you didn’t actually pay late. If you have documentation that shows that you made the payment on time, you can submit that to each credit bureau and ask that they update your credit score. You might be able to negotiate with a creditor to remove a negative mark, but this is not guaranteed to work.

Is it true that after 7 years your credit is clear?

How long missed payments and late payments stay on your credit report is usually seven years. That means that if you have not had any negative marks or late payments for seven years, you’ll be starting with a fresh slate.

Is payment history a big factor in your credit score?

Yes, payment history is a big factor in how your credit score is determined. While each credit bureau calculates your credit score differently, payment history is typically listed as one of the biggest factors in what affects your credit score.

How many points does a late payment affect your credit score?

There is not a single set amount that your credit score will drop if you have a late payment. Factors include your current credit profile and how late you are with your payment. For instance, being a day or two late is likely to ding your score less than being a few weeks late or missing the payment completely.

Can one late payment stop me from getting a loan?

One late payment could have a negative effect on your loan approval in some cases. Your payment history is the single biggest factor for determining your credit score, and if your score were considered borderline, a late payment could push you into a lower category. That lower credit score range might change the lender’s perspective on your creditworthiness. That said, a late payment is more likely to be a red flag than a dealbreaker.

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According to 2024 data from Experian®, the average credit score for a 24-year-old is 681. That’s one point higher than the 2023 average and is considered a “good” FICO® Score.

Here, we’ll walk you through the ins and outs of how your age can impact your credit score, how a 681 stacks up against the average score in the U.S., and ways to build your score over time.

Average Credit Score for a 24-Year-Old

As mentioned, the average credit score for a 24-year-old is 681, which the credit scoring model FICO classifies as “good.” With that score, you’re likely to qualify for an array of loans and credit cards, though you may not get the best interest rates and terms.

But take heart: Credit scores tend to increase with age. According to Experian data, the average credit score for Millennials (ages 28 to 43) is 691. Gen X (ages 44 to 59) has an average score of 709, while members of the Silent Generation (ages 79+) boast a 760 score.

What Is a Credit Score?

A credit score is a three-digit number that ranges from 300 to 850. It helps lenders and creditors gauge your creditworthiness, or the likelihood that you’ll pay back the money you borrowed. Generally speaking, the higher your score, the greater your chances of being approved for a credit card or loan.

Two common credit scoring models are FICO and VantageScore®. Most lenders use FICO. Though both models create scores based on similar key factors, the breakdown of scores is slightly different.

FICO Score

•   Exceptional (or excellent): 800 to 850

•   Very Good: 740 to 799

•   Good: 670 to 739

•   Fair: 580 to 669

•   Poor: 300 to 579

VantageScore

•   Super prime: 781 to 850

•   Prime: 661 to 780

•   Near prime: 601 to 660

•   Subprime: 300 to 600

Recommended: FICO Score vs. Credit Score

What Is the Average Credit Score?

According to the latest FICO data, the average FICO credit score in the U.S. is 717 — 36 points higher than the average 24-year-old’s score. And as of February 2025, the average VantageScore is 701. Both scores are well within the “good” or “prime” range, and could help borrowers qualify for favorable loan and line of credit terms.

Average Credit Score by Age

Age doesn’t necessarily determine your credit score. But as the chart below shows, the older you are, the more likely you are to have a higher score.

Age Group	Average Credit Score
Gen Z (18-27)	681
Millennials (28-43)	691
Gen X (44-59)	709
Baby Boomers (60-78)	746
Silent Generation (79+)	760

This makes sense. When you’re just starting out — as many 24-year-olds are — you may not have a long credit history. Plus, you might experience greater financial ups and downs as you find your professional footing, and this could impact your ability to pay off debts.

What’s a Good Credit Score for Your Age?

As we mentioned, the average credit score for a 24-year-old is 681. But remember, that’s just an average. No matter how old you are, FICO defines a good credit score as anywhere between 670 and 739. If your score falls within that range, your finances are likely in a sound place.

It’s worth noting that when you’re starting out, you may not have a credit score. Your credit history typically starts when you take out your first line of credit, and it normally takes around six months or so for credit bureaus to collect enough information for your starting credit to be calculated.

Though it can vary, a starting credit score may be anywhere from 500 to 700. You can gradually see it rise as you continue to bolster your credit.

How Are Credit Scores Used?

Credit scores are used in several ways. Lenders and creditors review your credit when you apply for a card or loan to help determine whether you qualify for financing. As you might expect, the higher your score, the greater your odds of getting approved for a credit card or loan with more favorable terms and rates.

But credit scores can also play a role in unexpected ways. For instance, this three-digit number could help determine how much you pay for insurance premiums or whether you’re approved to rent a home. And some potential employers might review your score during a routine background check.

Factors Influencing the Average Credit Score

To steadily build your credit score, it helps to understand the five key factors that influence it the most. Here’s a closer look at each component — and how much it counts toward your overall score.

•   Payment history (35%). Your track record of bill paying has the biggest impact on your FICO Score, so aim to pay your bills on time, every time. A spending app can help budget for the payments.

•   Credit utilization (30%). Also known as credit usage, this is how much credit you’re tapping into against the total amount available. Try to keep your credit card utilization low, as ringing up a too-high balance might signal to lenders and creditors that you’re spread thin financially.

•   Length of credit history (15%). A longer credit history shows lenders that you have a solid track record of using credit. Generally, the older the average age of your credit accounts, the higher your score tends to be.

•   Credit mix (10%). Having a diverse mix of credit can signal that you can responsibly manage different forms of debt. That said, you’ll want to only apply for the financing you need.

•   New credit (10%). When you apply for credit, a lender performs a hard credit pull, which can ding your credit score by a few points. Though the dip is temporary, it could stay on your credit report for up to a year.

How to Strengthen Your Credit Score

If you’re in your 20s, you might be in the early phases of understanding how long it takes to build credit. Here are a few things you can do to gradually lift your credit score.

Stay on Top of Payments

As we discussed, your payment history has a major impact on your credit score. Consider setting up automatic payments or changing your due dates to a time of the month that works better for you. For example, if the main cluster of bills is due at the top of the month, schedule your monthly credit card payments so they fall after your second paycheck. A money tracker app can help you keep track of payments so you won’t miss a due date.

Keep Credit Usage Low

If you have a credit card balance, try to ensure your credit utilization doesn’t exceed 30%. For instance, let’s say your credit limit on all your cards is $2,000. To maintain a 30% credit usage, you’ll want to carry a balance no larger than $600.

If you want to see whether your hard work is paying off, you can check your credit score for free.

Limit New Credit Application

There are reasons why you should avoid applying for unnecessary credit. For starters, a lender will likely do a hard inquiry with each application, which can temporarily ding your score. Also, applying for multiple lines of credit within an extremely short time frame could signal to lenders that you’re financially strapped.

There is an exception: If you shop for an installment loan, like a car loan or mortgage, lenders give you anywhere from 14 to 45 days to shop for rates. The hard pulls generally count as a single inquiry when you are rate shopping.

How Does My Age Affect My Credit Score?

While age doesn’t factor into your credit score, you may notice that your three-digit number may improve as you get older. This is because as you age, you’ve had more time to establish an account history and may have an easier time managing your debt obligations.

What Factors Affect My Credit Score?

As we discussed, the top factors impacting your credit score are payment history, credit usage, length of credit history, credit mix, and new credit.

If you’ve made some financial blunders and want to build or repair your credit, work on fixing the areas that have negatively impacted your score the most. So, for example, if you’ve fallen behind or missed payments, you’ll want to start paying bills on time.

Keep in mind that boosting credit doesn’t happen overnight. Your credit score updates every 30 to 45 days, so resist the urge to constantly check on your score. Instead, you’d be better off focusing on strategies that build up your credit.

At What Age Does Your Credit Score Improve the Most?

According to Experian data, the biggest jump in credit scores tends to happen between Gen Z and Baby Boomers. But again, the longer you’ve been responsibly managing an account, the higher your score will likely be.

How to Build Credit

There are several ways to build your credit — here are a few simple strategies to explore:

Become an Authorized User

If you have a family member or trusted friend with a solid credit history, ask if they can add you as an authorized user on your card. You’ll be able to make purchases with the card, but the primary cardholder is responsible for making payments.

Report Rent and Utility Payments

Alternative credit reporting, such as reporting your rent, cell phone bill, and utility payments, can be another way to improve your score when you’re just starting out. You usually need to sign up with a third-party platform that reports your on-time payments to the credit bureaus, and you may be required to pay a monthly subscription fee.

Open a Secured Credit Card

A secured credit card is usually easier to get than an unsecured one, though it requires you to put down a security deposit that typically matches your credit limit. Otherwise, a secured card works just like any other credit card. Making timely payments and using credit responsibly can help build your score.

Credit Score Tips

Besides being mindful of best practices to build your credit, you’ll want to check your credit score every so often and note any changes. You may be able to do this with credit score monitoring tools or through your bank or credit card company.

It’s also a good idea to regularly review your credit report for mistakes or inaccuracies. You can receive a free copy of your report each week via AnnualCreditReport.com.

Recommended: Why Did My Credit Score Drop After a Dispute?

The Takeaway

To recap, what’s the average credit score for a 24-year-old? According to Experian, it’s 681, which falls into the “good” category. When you practice sound financial behaviors, your score could increase even more over time. For instance, staying on top of payments, paying down debt, and keeping credit accounts open can all help bolster your score.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What is a good credit score for a 24-year-old?

The average credit score for someone who is 24 is 681, which is technically considered a “good” FICO score. Younger consumers who are starting out on their credit-building journey may have a harder time achieving an excellent score.

What is a good credit limit for a 24-year-old?

The average credit limit for 24-year-olds in the U.S. is $12,899, according to Experian. However, what’s considered good depends on the individual’s finances, spending habits, and ability to pay down the balance.

How rare is an 800 credit score?

According to Experian data, 22% of Americans have a credit score of 800 or higher, which is considered an excellent score.

Is a 900 credit score possible?

Consumer credit scores range from 300 to 850, so a 900 credit score isn’t feasible.

Is 650 a good credit score?

A 650 credit score falls in the “fair” range. With a fair credit score, you can get approved for some forms of financing, but you’ll likely get higher interest rates and the less-favorable terms.

What credit score is needed to buy a $300K house?

If you’re buying a home with a conventional loan, you’ll need a minimum credit score of 620. Lenders may accept a credit score as low as 500 if you’re taking out an FHA loan.

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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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The credit score you’ll need to buy a car will vary depending on your financial circumstances, the type of car you want to buy, and whether you’re buying used or new. That said, the average score needed to buy a car is 755 for new cars and 691 for used cars, according to the credit bureau Experian.

Looking to buy a car in the near future? Here’s what you need to know about the credit scores lenders may use when deciding whether to approve your auto loan application.

Minimum Credit Score to Buy a Car

Your credit score is a three-digit numerical representation of your credit history. There are two main credit scoring models used in the United States: FICO® and VantageScore®. FICO scores, which generally range between 300 to 850, are used in the majority of lending decisions.

If your credit score isn’t as high as you’d like, that doesn’t mean there will be no loan options for you. In fact, there isn’t a universal minimum credit score required to buy a car, though some lenders will set minimums of their own.

What’s important to know is that the lower your credit score, the harder it may be to secure a loan — and the more expensive borrowing could get. That’s because if you have poor credit, lenders may charge higher interest rates and fees.

Recommended: How Long Does It Take to Build Credit?

Understanding Auto Loan Credit Scores

Your credit score is based on information from your credit reports, which are maintained by the three major credit reporting bureaus: Equifax, Experian, and TransUnion. The report documents how you’ve managed credit in the past. For instance, it records how many credit accounts you’ve had, which accounts are active (and for how long), if you’ve paid your bills on time, and how much of your available credit you’re using.

There are many different credit scoring models out there, which use different parts of your credit report to calculate your score. For example, some models might ignore debt collections for smaller amounts, while others may consider them. Lenders can choose which credit score they wish to look at when considering you for a loan.

What Is a FICO Auto Score?

There are several versions of a FICO Score, including FICO Auto Score, which — you guessed it — is designed specifically for the auto industry. These scores help predict how likely a borrower is to repay an auto loan on time. This means your history of paying off a car loan could play an important role in determining your score.

How to Increase Your Credit Score Before Buying

As we mentioned, if you have a low credit score, it may be harder to secure a loan. And the loan you do secure may be more expensive. To make things easier and cheaper for yourself, you may want to look into ways to build your credit before applying for an auto loan.

Chief among the factors that affect your credit score is your payment history, which accounts for 35% of your FICO Score. One of the best things you can do for your credit file is to pay your bills on time, every time.

Tip: A spending app can help you spot upcoming bills, set a budget, and track where your money is going.

But payment history is just one factor that impacts your credit score. Your credit utilization — or the amount you owe versus your available credit — is also important and makes up 30% of your FICO Score. If you are using a lot of your available credit, lenders could worry that your finances are overstretched and, as a result, you may not have the resources to take on another loan. To help build your credit, consider lowering your credit utilization by paying down other debts first.

A long credit history can help improve your credit file, so you may want to avoid closing older accounts that are in good standing. And, if possible, try to avoid applying for multiple loans or credit cards in a short period of time. That’s because each application may trigger a hard inquiry, which can temporarily lower your credit score.

Your credit score updates at least every 45 days. To keep track of your progress as you work to improve your score, you can check your credit score without paying once a week from each of the credit reporting bureaus.

You might also consider signing up for credit score monitoring to help ensure your current credit score is always at hand.

While you’re at it, make it a habit of checking your credit report regularly. If anything is incorrect on the report, you are allowed to file a dispute with the company that reported the information and the credit bureaus that recorded it.

Recommended: How to Check Your Credit Score Without Paying

Where to Get an Auto Loan

When you’re ready to seek a loan, you’ll want to shop around for the best deals among several different lenders. You may consider getting loan offers from banks and credit unions, online lenders, and dealerships that offer financing. Credit scoring companies recognize that people often shop around to multiple lenders when seeking a loan. And in this case, they won’t penalize you for extra hard inquiries.

How Credit Scores Affect Auto Loans

The higher your credit score, the more likely it is that you’ve been responsible with credit in the past. Lenders see borrowers with higher scores as less of a risk, and they typically reward them with lower interest rates and better terms on auto loans.

On the other hand, lenders see borrowers with lower scores as a greater risk. To compensate for this risk, lenders may charge higher interest rates and offer less favorable terms.

Note that while the lowest FICO Score is 300, that is not necessarily your starting credit score. For instance, if you’re just starting building credit and have no credit history, you may in fact have no score yet.

The Takeaway

While there is no minimum credit score you need to buy a car, a higher score can mean you qualify for a loan with lower interest rates and better terms. If you have a lower credit score, consider doing what you can to boost it before you apply for an auto loan. This may include paying your bills on time, lowering your credit utilization, and keeping older accounts open.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

How to get an 800 credit score from 720?

To raise your credit score from 720 to 800, focus on paying your loans on time, reducing the amount of credit you’re using, and possibly increasing your mix of credit.

What is the average American credit score?

The average credit score in the United States is 715, according to Experian.

How common is an 800 credit score?

Per Experian data, 22% of all Americans have a credit score of 800 or higher.

How rare is a 720 credit score?

A credit score of 720 falls within the “good” range. By that definition, roughly one in five of Americans have a good score.

How big of a loan can I get with a 700 credit score?

A credit score of 700 falls within the “good” range. This means that your loan request likely will not be denied. However, the exact amount you qualify for will depend on a number of factors, including your income, the type of loan you’re applying for, and your debt-to-income ratio.

Is a 720 credit score good enough to buy a car?

There’s no minimum credit score required for an auto loan. Still, a credit score of 720 is considered “good” and can help increase the chances you’re approved for a car loan.

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Photo credit: iStock/Ridofranz

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re a consumer in the United States who has a credit history, then you probably have a credit score. More than one, in fact.

FICO® Scores are far and away the most widely used — 90% of lenders rely on them to assess a borrower’s creditworthiness. That said, there’s no single credit score that matters the most. Lenders can and do use a variety of credit scores to determine whether to approve your application for credit and what terms to offer you. Whether you’re looking to make a major purchase or focused on building up your credit profile, it’s a good idea to understand the different types of credit scores out there and how to keep tabs on yours.

Types of Credit Scores

You may have noticed that your credit score varies depending on which website you visit. That’s perfectly normal. As we mentioned, anyone with a credit history probably has more than one score.

One reason for this is that the three main credit bureaus — Equifax, Experian, and TransUnion — may each receive slightly different information from lenders. As a result, your score could vary by bureau.

In addition, there are multiple different ways to calculate a credit score based on the information available. That’s why there’s sometimes a gap between your VantageScore® vs. FICO scores.

This can be an important difference to understand, since Vantage scores are often the credit scores available for free through online platforms. You may sometimes see one credit score (your VantageScore) when you get a free credit report, but then be surprised to learn, when you apply for a credit card or loan, that your FICO Score is different.

Recommended: FICO Score vs. Your Credit Score

How FICO Works

Generally speaking, your FICO Score is calculated based on the following factors and their relative weights:

•   Payment history (35%). This reflects how often you’ve made on-time payments on your debt. Late or missed payments or accounts sent to collections can negatively impact your score.

•   Amounts owed (30%). This is your credit utilization ratio, or the amount of available credit that you’re using. Ideally, aim to keep this ratio below 30%.

•   Length of credit history (15%). This looks at the average length of your credit accounts. Typically, a longer history is a sign to lenders that you have more experience successfully managing your debt.

•   New credit requests (10%). When you open a credit account, the lender may do a “hard” credit inquiry, which could cause your score to temporarily drop.

•   Credit mix (10%). This refers to the mix of credit types in your portfolio, which may include credit cards, car loans, or other types of credit.

How Experian Works

As one of the three main credit reporting bureaus in the U.S., Experian collects information about your credit accounts and payment history and includes those details in your Experian credit report.

The bureau does make it possible for you to access your FICO Score for free, though it also offers a paid service that provides credit score monitoring for all three bureaus.

How Equifax Works

Equifax is another U.S. credit reporting agency that offers similar services to Experian.

Again, while you’ll likely have a credit report from both Equifax and Experian, the scores may differ slightly based on the information each bureau has collected. It’s worth noting that Equifax also allows you monthly access to your VantageScore credit score based on the agency’s data.

Which Credit Score Bureau Is Best?

There’s no one “best” credit score bureau. All three bureaus collect consumer information and produce credit scores.

When you want to look at your credit report, it’s a good idea to request a copy from each of the bureaus. That’s because lenders may choose to pull your credit report from any one — or all — of them. By checking all three scores, you can be aware of negative information that affects your credit score and have a chance to correct any inaccuracies you see.

Recommended: Why Does Creditworthiness Matter?

How Can You Obtain Your Credit Score?

You have several options when it comes to accessing your credit score. You may be able to see it on your credit card statements or when you bank online. You can use free credit score websites or purchase your score from a credit bureau.

MyFICO offers a free service that allows you to check your FICO Score and receive your Equifax credit report each month. (You can also pay for a plan that includes three-bureau credit report access, identity theft insurance, and more.)

Another avenue to consider: A spending app, which often offers credit scores. Unless otherwise indicated, you’ll likely be seeing your VantageScore credit score.

Remember, credit scores update every 30 to 45 days, so it’s a good idea to check yours every so often.

How Can You Obtain Your Credit Reports?

While your three-digit score is a great way to see how your credit is faring, the best way to fully understand everything in your credit history is to read the full credit report. If you see any information that looks suspicious or incorrect, you can file a dispute directly with the credit bureau to have it removed.

Every American is entitled by law to pull their credit reports from all three bureaus for free once a week via AnnualCreditReport.

What Is a Good Credit Score Range?

FICO Scores range from a low of 300 to a maximum of 850. (That’s right: The starting credit score is not zero.) Here’s how FICO categorizes scores:

•   300 to 579: Poor

•   580 to 669: Fair

•   670 to 739: Good

•   740 to 799: Very good

•   800-850: Exceptional

If your score is lower than you’d like, be aware that it can take some time to build credit.

One great way to build your credit is to try to lower your overall credit card utilization. This means paying down your debt, particularly balances on revolving debt. And because on-time payments count for such a heavy part of the score, keeping up with your bills each and every month can also be a big help.

Finally, try not to sweat every fluctuation. Sometimes, filing a dispute or multiple hard inquiries in a short time frame can ding your score, but those dips tend to be temporary.

The Takeaway

If you have a credit history, then you likely have more than one credit score. So which credit score matters the most? Short answer: Whatever score the lender uses when considering your application for credit. Generally, FICO Scores are used in most decisions, though each lender has its own policies around which scoring model and version to use.

Regardless of the scoring model, staying on top of your bills, paying down debt, and regularly reviewing your credit report can help ensure you’re on firm financial footing.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Is FICO or TransUnion more accurate?

FICO and TransUnion serve different purposes. FICO is a credit scoring model that uses a proprietary algorithm to calculate credit scores. TransUnion is one of the three major credit reporting bureaus in the United States that collects credit information about consumers from lenders and creates credit reports.

Do lenders look at FICO or TransUnion?

What a lender reviews — whether it’s just your credit score (like your FICO Score) or your complete credit report (like from TransUnion) — usually depends on the type of credit you’re applying for. For smaller lines of credit, like a credit card, they may only check your score. But for larger loans, like a mortgage, they’re more likely to dig into your full credit history.

Why is my FICO score 100 points lower than Credit Karma?

Credit Karma provides its users free access to their Vantage Score, which is calculated using a different algorithm than the FICO Score. If your score on Credit Karma is different from your FICO Score, it’s likely because of the different calculations.

What is a good FICO score?

According to FICO, a “good” credit score falls between 670 to 739. Credit between 740 to 799 is considered “very good,” while credit scores of 800 and above are considered “exceptional.”

Do lenders use FICO or Vantage?

The majority of U.S. lenders use FICO Scores to assess a potential borrower’s creditworthiness. However, a VantageScore is what you’re more likely to see on many web platforms that offer free credit scores.

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SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Missing a credit card payment can happen to anyone. But a credit card late payment may also come with certain consequences, such as late fees, interest accrued on the credit card balance, and potential negative impacts to your credit score. The longer you go without paying your bill, the more consequences you may experience.

Here’s a look at what happens if you miss a credit card payment and solutions to help prevent this from happening in the first place.

When Is a Credit Card Payment Considered Late?

As soon as you fail to pay your credit card bill by the due date, it’s considered past due. Your credit card company may send you notices about it in the form of calls, emails, letters, or texts. You could also face some financial consequences for being late.

What Happens if You Make a Late Credit Card Payment?

Here are some of the ways that not paying your credit card bill on time could impact you.

The Credit Card Balance Could Increase

Even if you didn’t use the card to make new purchases during a particular billing cycle, making a late payment could still potentially increase your balance in a few different ways.

With even the first missed due date, the credit card company can charge a late fee of up to $30. If you miss another payment within the next six billing cycles, the late fee can go up to $41.

The silver lining here is that the late fee can’t be more than the minimum amount due on the account. So, for instance, if your minimum payment is $25, your late fee won’t exceed $25.

There’s also a chance the creditor could increase your interest rate if your payment is late by a certain number of days. Increasing your interest, or annual percentage rate, will also increase your total credit card balance because that new, higher rate (generally referred to as a “penalty APR”) will apply to the entire unpaid balance.

Not all credit card companies have penalty APRs for late payments, so check with your credit card company to verify.

Recommended: What Is APR on a Credit Card?

Your Credit Score Might Be Affected

Your credit score includes information about your credit history, such as your payment history and the standing of your accounts, so a late payment could have a negative impact.

Generally, creditors send information to credit bureaus using different codes to indicate if a payment is current or late. Since there is no credit code for payments that are one to 29 days late, they may use a “current” code.

Once the payment is more than 30 days late, however, creditors generally use the “late” code to denote that the payment is delinquent. But different creditors will send different codes at different times so there’s no way to know for sure when you will see the late payment reflected in your credit report.

Creditors may not report a late payment to credit bureaus until a full billing cycle has gone by with no repayment (typically 30 days). So, for example, if your payment’s due date was the 11th and you paid on the 13th, there’s a chance your credit won’t take a hit.

Although every situation is different, a late payment might end up staying on your credit report for several years. And because credit history is just one factor used to determine your credit score, it’s hard to predict exactly how a late payment will impact your overall score.

The Balance Could Be Charged Off

Another consequence of not paying your credit card bill is that the credit card company may not allow you to continue to use your card for other purchases until your account is in good standing.

What’s more, if your payment is 180 days past due, the credit card company can close your account and charge off the balance. “Charging off” means the credit card company will permanently close the account and write it off as a loss, but the debtor still owes the balance remaining.

Sometimes, credit card companies will attempt to recover what’s owed through their own collection department, but charged-off debts are sometimes sold to third-party collection agencies, which then attempt to get payment from the debtor.

Credit card companies do have leeway to work with their customers. Under FDIC regulations governing retail credit, the creditor can help customers who have had financial setbacks — like job loss or the death of a family member — get back on track.

This leniency is typically shown to people who are willing and able to repay their outstanding debt, and the FDIC encourages creditors to proceed with this step with a structured repayment plan and to monitor the progress of the plan.

How to Resolve a Credit Card Late Payment

Say it’s a few days or more past your credit card bill’s due date, and you haven’t made a payment. Now what? Follow this advice.

Make a Payment Right Away

If the payment just slipped your mind, don’t panic. Paying the credit card balance in full immediately helps avoid accruing interest charges and potentially saves your credit score from dropping. Alternatively, you might want to ask your credit card company about arranging a payment plan to minimize the damage.

Negotiate Fees

Even though your credit score may not drop because of one missed payment, you may incur late fees or a penalty interest rate (or, more accurately, a penalty APR as mentioned above), which will likely increase your total balance.

However, sometimes credit card companies are willing to work with customers to waive those fees. Calling your credit card company to request a waiver of late fees could be a first step, especially if your account is up to date and you’re not a repeat offender.

If your credit card company seems unwilling to change your rate back to the original amount, you might consider asking if they will do so once you show responsible payment history.

Automate Your Credit Card Payments

To help prevent any late payments in the future, you may want to consider setting up autopay to cover the minimum payment on your credit cards.

This way, if a payment slips your mind, you shouldn’t face any late payment consequences. Setting your bill to be automatically paid in full a few days before the payment is due can ensure you pay your balance in time.

If you would prefer not to sign up for autopay, many credit card companies have an option to sign up for notifications that remind you when your payments are due.

Getting Out of Credit Card Debt

To avoid late credit card payments once and for all, you may want to consider solutions for getting out of credit card debt entirely. Strategies depend on your unique financial situation, of course, but here are some you might want to explore.

Budget to Get Out of Debt

Creating a budget can help you better manage your money so you know what you have coming in and going out. You can use either a simple spreadsheet or a spending tracker app to simplify your efforts.

Once you have a handle on how much extra money you can put toward your debt, you may want to select a debt repayment strategy, such as the snowball method or avalanche method.

With the snowball method, the focus is on paying off the smallest debt balance first and then moving on to the second smallest debt balance, and so on, while still making minimum payments on all debt. This type of method is meant to give a psychological boost.

The avalanche method tackles the debt with the highest interest rate. Since you’re starting with the most expensive debt, this strategy can be a big money saver in the long run.

Open a Balance Transfer Credit Card

If your credit is in good standing, opening a balance transfer credit card could be a solution. Usually, these types of credit cards come with low or 0% APRs for a certain period.

Some companies may offer up to 21 months of interest-free payments during the promotional period. But it’s important to note that while the introductory period might be interest-free, you may still have to pay a balance transfer fee between 3% and 5%.

Ideally, you would pay your credit card balance in full by the time the introductory period is over, which would allow you to avoid interest payments on the debt.

Keep in mind, however, many balance transfer credit cards have restrictions. For example, if you make a late payment, you may lose your introductory rate.

Another limitation may be that your introductory APR only applies to the transferred balance and all other transactions may have a higher rate.

Before taking out another line of credit, understand that it can impact your total credit score. Credit scores are calculated using several factors, including credit history and new credit, both of which could be affected when opening a new account.

Consolidate Debt with a Personal Loan

Another option may be to combine separate payments into one credit card consolidation loan, hopefully for a reduced interest rate. While a loan doesn’t erase your debt, it can help you focus on one monthly payment, which might enable you to pay down your debt faster.

As you compare rates, it’s important to understand how a new loan could pay off in the long run. If your monthly payment is lower because the term for a personal loan is longer, for example, it might not be a good strategy, because it means you may be making more interest payments and therefore paying more over the life of the loan.

You can use an online personal loan calculator to get an idea of how much interest you could save by using a personal loan to pay off debt.

Recommended: 11 Types of Personal Loans & Their Differences

The Takeaway

Late credit card payments can come with consequences, like late fees, interest, or a temporary hit to your credit score. And the longer your bill goes unpaid, the more consequences you may experience. Fortunately, there are ways to resolve a late payment, starting with making a payment as soon as you realize one is overdue, setting up autopay, and other tactics. If this kind of debt has become an issue, you might consider a personal loan to consolidate your debt.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Can you go to jail for not paying credit card bills?

No, you can’t be arrested for not paying your credit card bills.

What happens if you never pay your credit card bill?

There are some serious potential ramifications for not paying your bills. The delinquency may be noted on your credit report, which can damage your credit score. You could even face a civil lawsuit if the debt goes unpaid.

Can my creditor garnish my wages for not paying my credit card?

Yes, if your credit card debt has been sold to a debt collector, and the collector has a court judgment, then they can garnish your bank account or wages.

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About the author

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This article is not intended to be legal advice. Please consult an attorney for advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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