How Long Late Payments Stay on Your Credit File in the UK

A "Late Payment" marker is one of the most common negative entries on a UK credit file. Whether it was a forgotten phone bill or a credit card oversight, once it is recorded, it has a defined lifespan on your credit history.

This guide clarifies the rules surrounding data retention for late payments, detailing exactly how long they remain visible, when the "clock" starts ticking, and the difference between paying off a debt and removing the record of it being late. It is based on the standard reporting practices of the three main UK Credit Reference Agencies (CRAs): Experian, Equifax, and TransUnion.

• The Rule: Late payments stay on your credit file for 6 years from the date of the missed payment.
• Removal: This happens automatically. You do not need to apply for their removal once the 6 years are up.
• Paying it Off: Paying the debt updates the balance to £0 and marks the account as "Satisfied" or "Up to Date," but it does not remove the late payment marker. The record of the lateness remains part of your history until the 6-year period expires.
• Impact: The negative impact on your ability to get credit is highest in the first 12 months and fades over time. A 4-year-old late payment hurts much less than a 4-month-old one.

When you miss a contractual payment, the lender reports this fact to the Credit Reference Agencies. This reporting creates a "Status Code" on your file.

1. Status 1: You are 1 month late (typically 30+ days past due).
2. Status 2-6: The numbers increase for each subsequent month missed.
3. D / DF (Default): Use this status when the relationship has broken down, usually after 3-6 months of non-payment.

This data is retained under the Principles of Reciprocity (a data-sharing agreement between lenders and CRAs) and data protection laws. The standard retention period for almost all credit account data — good or bad — is 6 years.

This 6-year period aligns with the Statute of Limitations for most debts in England and Wales, which is also generally 6 years (5 years in Scotland). It serves as a standard industry timeframe for assessing creditworthiness.

The Start Date

The 6-year clock starts from the date of the specific missed payment.

• Example: If you missed a payment in January 2024, that specific "1" marker will drop off your file in January 2030.
• Defaults: If the account goes into Default, the clock resets. A Default stays for 6 years from the Default Date, regardless of when the original payments were missed. This is why avoiding a Default is critical.

Impact Over Time

While the marker stays for 6 years, its "weight" in credit scoring models changes.

• Year 1: High Impact. Lenders view you as actively risky.
• Years 2-3: Medium Impact. You may get approved, but perhaps not for the best rates.
• Years 4-6: Low Impact. Many mortgage lenders, for instance, may overlook a few late payments if they are historic (typically older than 2–3 years) and your recent history is perfect.

Paying vs. Deleting

There is a crucial distinction between "satisfying" a debt and "deleting" the history.

• Satisfying: You pay what you owe. The account balance becomes £0. The status becomes "Satisfied" or "Settled." This is good. It stops further damage.
• Deleting: Removing the history that you were late. This only happens if the marker was added in error. If you were genuinely late, the marker stays, even if you pay the debt in full the next day. The credit file is a record of history, not just current status.

"I paid it, so it should be removed."

This is the most common misconception. Paying a late bill prevents it from turning into a Default or a CCJ (County Court Judgment), which is vital. However, it does not erase the fact that the payment was late. The late marker remains as an accurate historical record.

"Can I ask for a 'Goodwill Removal'?"

In the US, "Pay for Delete" or "Goodwill Adjustments" are sometimes discussed. In the UK, CRAs and lenders are under strict regulatory obligations to ensure data accuracy. Lenders generally will not remove accurate data just because you ask nicely or offer to pay. If the data is accurate, it stays.

"Are late payments the same as Defaults?"

No. A late payment (Status 1, 2, 3) is a warning. A Default (Status 8 or D) is a broken relationship. A Default is significantly more damaging and creates a clear "black mark" that triggers an immediate rejection from many prime lenders. All Defaults start as late payments, but not all late payments end as Defaults (if you catch up in time).

Inaccurate Data

If you were not late — for example, you paid on time but a bank IT error caused a delay — you have a statutory right to have the marker removed immediately. This is a correction of an error, not a concession. You should follow the CRA's dispute process.

"Soft" vs "Hard" Latches

Some utility providers may record "soft" arrears on their internal systems before reporting to a CRA. However, once a "1" status is reported to a CRA, it is a formal late payment visible to other lenders.

Bankruptcies and DROs

Insolvency events also stay for 6 years, similar to late payments and defaults.

1. Check Dates: Look at your credit report to see exactly when the late payment occurred. Calculate the 6-year expiry date.
2. Don't Panic: If the late payment is 4+ years old, its impact is already fading. You likely don't need to "fix" it to get a reasonably priced mortgage.
3. Automate: The vast majority of late payments are accidental administrative errors (forgetting a bill). Setting up Direct Debits for the minimum amount on every card is the most effective safeguard.
4. Cure It: If you are currently late (Status 1), pay immediately to bring the account "Up to Date" (Status 0). This stops the marker escalating to a 2, 3, or Default.

• 6 Years: The universal retention period for valid late payment markers.
• Automatic Removal: Markers drop off automatically after 6 years.
• Accuracy Matters: You cannot remove accurate markers, even if you pay the debt. You can only remove incorrect ones.
• Severity: Recent lateness hurts more than historic lateness.
• Defaults: Avoid late payments turning into Defaults, which also last 6 years but cause much deeper damage to your creditworthiness.