What is the timeframe for which a late payment can affect a credit score?

The timeframe for which a late payment can affect a credit score is up to seven years because credit scoring models, such as those developed by FICO and VantageScore, consider the recency and severity of late payments in assessing an individual's creditworthiness. When a payment is missed, it can be reported to credit bureaus, and this mark will typically remain on a credit report for seven years from the date of the delinquency.

This duration is critical because it factors into various assessments lenders make when evaluating an individual's credit risk. While the impact of a late payment on a credit score diminishes over time, it can still have significant implications for securing loans, credit cards, or other lines of credit during this seven-year period. Understanding this timeframe is important for managing finances and building a positive credit history effectively.