Improve Credit Score|Improve Missed Payments

What Are Missed Payments

Missing your payments doesn’t sound that bad because you don’t do it that often.  When the credit score that shows up on your credit reports are calculated the missed payments category includes more than just late payments; it also includes any accounts that go into collections, any repossession’s, foreclosures, tax liens and bankruptcies.

To help you understand the damaging impact of these on your credit, let’s review the impact of each of those on your credit score and credit reports.   Three of the most negative hits to your credit scores are bankruptcies, foreclosures and tax liens.

Late Payments

So you miss a credit card payment or a rent payment or a mortgage payment once in a while, how bad can that be?   Bad enough.  If your payments are past due more than 30, 60 or 90 days, you will cause considerable damage to your credit score.   But also remember that even if your payments are only a few days late, you still damage vs improve your credit score.

Accounts In Collection

If any of your accounts go to collection you will not improve credit score, but instead do much damage to it.  Collection accounts can stay on your credit report for 7 years; that’s a very long time in terms of your financial life.

After you have paid a collection account in full, you can try to negotiate with the collection agency to have the account removed from your credit reports.   A collection account that is paid will still remain on your credit reports unless you negotiate to have it removed.


Repossession’s are very damaging to credit scores.  The most common repossession is someones car and it’s usually because people can’t make their car payments.   A repossession on your credit reports can also remain there for 7 years.

Missed payments and foreclosuresForeclosures

If your home goes to foreclosure, your credit scores will be damaged for, again, 7 years.   A foreclosure is one of the top 3 worst mistakes you can make if you are trying to improve your credit score.

Tax Liens

A tax lien is where the government puts a lien on your property; this will stay on your credit reports until satisfied.  While that tax lien is active, you will have a bad mark on your credit reports.   Creditors, landlords, mortgage companies and credit card companies will assume you are a bad risk and either deny you or charge you more in fees and interest.


A bankruptcy can remain on your credit reports for 10 years.   A bankruptcy is another one of the top 3 credit mistakes you can make when trying to improve credit score.

So if you are trying to improve your credit score, do whatever you possibly can to avoid a foreclosure, tax lien or bankruptcy.   You will do considerable damage to your credit scores for 7 to 10 years if you face a foreclosure, bankruptcy or are hit with a tax lien.