I had a 30-day late payment in April 2015 and one 90 days late repayment in September of 2015. When would the seven-year rule start? April or September?
- James.
Dear James,
Late loan repayments remain on the credit report for seven years. The seven-year rule is based on when the late repayment occurred.
Whether the entire borrower's account will be deleted is determined by whether you brought the account current after the missed payment. If the account was brought current, the late payments that have reached seven years old will be removed, but the rest of the account history will remain.
In your case James, if you had a single late payment in April of 2015, that late payment will fall off by April of 2022.
Also Read: Here's What Happens When you Default or Miss on a Loan Repayment and how to Avoid it.
If the account was brought current between April and September of 2015 and then the second series of late payments occurred, those late payments would be removed seven years from the first missed payment in that series.
How to Calculate When Late Payments Will Be Deleted
Late payments, also called delinquencies, are deleted seven years from the original delinquency date of the debt after which it was never again current.
That means that if you have 30-day late payment reported and then bring the account current the next month, the late payment will fall off seven years from when it was reported.
If you miss three payments in a row, your account would be reported 90 days late. The seven-year period would begin with the first payment you missed in that series.
All three payments would be deleted seven years from that date. The date is called the "original delinquency date," or sometimes the "date of first delinquency."
Answered by OKash Consumer Education Office.