We received an excellent question from Patrick this morning:
If I make a payment for a credit card and mail it on the due date, and
they receive it say 5 days later I know I will be charged for the late
payment. But my question is does it go on my credit report as late? My credit report just shows 30, 60, & 90 day late history????
This is a great question! In all my years in the credit industry, I have never thought about the different credit card policies on reporting late payments. Patrick stumped me!
So, I called a couple credit card companies to investigate. The credit card issuers are a whole lot more lenient than I expected:
- Capital One reports late payments after 30 days.
- Chase reports late payments after 30 days.
- Orchard (HSBC) Bank reports late payments after 30 days.
- MBNA (B of A) reports late payments after 30 days.
- Citi waits 60 days to report late payments.
- American Express reports late payments after 60 days.
- Discover waits 60 days to report late payments.
A five day late payment will cause you to be charged a late fee (usually $35) but it will not be reported to the credit bureaus. You’ll have to miss your payments for more than 30 or 60 days before they report you to the credit bureaus. That’s a really long time!
When he got my email response, Patrick said: "I hope I don’t start something here with people holding off on mailing in there payments promptly." I agree! Making your payments on time is still very important and $35 is a pretty big fee for paying late. Keep in mind that your creditors still track your payment records and could base their decisions about your rates and credit limits on late payments under 30 days.
Next question? Post your question in the comments section below!