What is a missed payment?

Last reviewed April 2026

Quick answer

A missed payment is when you don't make a payment on the date agreed during a billing cycle — usually 30 days — to your lender. Lenders report missed payments to the three UK credit reference agencies (Experian, Equifax, TransUnion), where they can lower your credit score and affect your future ability to borrow.

It is not only missed payments on credit cards and loan repayments that are taken in account. Missed payments on gas, electricity and mobile phone contracts are also recorded with Credit Reference Agencies (CRA). The main three you may have already heard of are Experian, Equifax and TransUnion.

Missed payments appear on credit reports, and repeated instances can reduce your credit score. This can affect your future ability to borrow, because almost all lenders check an applicant's credit report, and one of the most important factors they consider is payment history.

30 days

Typical billing cycle before a missed payment is flagged

14 days

Typical grace period lenders allow before reporting

6 years

How long a default stays on your credit file

If you have many instances of missed payments or defaults, a lender will likely deem you 'high risk' and decline your application, or charge a high rate of interest.

What happens if you miss a payment?

If you miss one payment, credit reports will consider this 'early delinquency'. One missed payment does not mean your account defaults. There are a number of steps before any account is considered in default. But this is not a reason to be lax with your repayments, because two missed payments are worse than one.

What is delinquency?

An account is considered ‘delinquent’ once you miss a payment. For example, if your payment is due on the 15th of each month but you don’t pay until the 20th, your account is considered delinquent in the interim. Lenders don’t typically report delinquency or missed payments to CRA’s immediately. They often provide a ‘grace period’ to make the repayment in full. A grace period is typically around 14 days.

If you have three missed payments, lenders often consider this to be ‘sustained delinquency’. Unless this happened some time ago, it is likely to lead to a rejection of your application.

What do missed payments look like?

Missed payments are shown on credit reports as a single digit. A '1' means you've missed one payment; a '5' means you've missed five consecutive payments.

When a lender assesses your application they see the current status of your account. Assessment differs between lenders, but a recent '1' missed payment can be enough for some lenders to interpret this as financial difficulty right now, and decline.

The worst status for the last 12, 24 and 36 months is often displayed to a lender checking your file. So even if you've paid off a previous missed payment, your credit file will state if you missed any repayments over the last three years.

Important

If you miss 6 consecutive repayments, the lender may record a default against you. Defaults are more serious and remain on your file for six years. Many lenders automatically decline applications where a default is present.

What can you do about a missed payment?

If you miss a payment - either by mistake or due to financial difficulty - you should contact your lender as soon as possible. They may be able to advise and offer alternative solutions, such as giving you more time to make the payment.

If you're experiencing financial difficulty, it's best to be honest with your lender. They may agree to a repayment plan that suits you. You can also contact free debt advice services such as StepChange or Citizen’s Advice for further support.

If your credit report has been impacted by missed payments, you can work on other aspects of your credit profile — including ensuring you're on the electoral register and checking your report for mistakes.

Key takeaways

✓ A missed payment is when you don't pay at least the minimum due on time.
✓ Lenders typically allow a ~14-day grace period before reporting to credit reference agencies.
✓ Three missed payments is 'sustained delinquency'; six consecutive missed payments can trigger a default.
✓ Defaults stay on your credit file for six years.
✓ Contact your lender early — they may offer a repayment plan that protects your file.