Missing a payment, even by a single day, can trigger a negative notation on your Canadian credit report. For many Canadians, a missed payment is the first sign of financial stress that becomes visible to lenders. Here is how missed payments work in the Canadian credit system and how long they stay on your report.
How Long Do Missed Payments Stay on Your Credit Report in Canada?
A missed payment stays on your credit report for 6 years from the date the payment was missed. This applies to both Equifax Canada and TransUnion Canada. The notation typically records how many days the payment was overdue: 30 days, 60 days, 90 days, or more.
Missed Payment vs Late Payment: Is There a Difference?
In common usage, missed payment and late payment are often used interchangeably, but there is a technical distinction. A late payment is one that was eventually made, just after the due date. A missed payment is one that was never made, leading to the account becoming increasingly past due until the creditor writes off the balance or sends it to collections.
Both types are reported to Equifax Canada and TransUnion Canada, and both stay on your credit report for 6 years. However, a missed payment that leads to a collection account results in two negative entries: the late payment history on the original account and the collection account itself.
How Do Missed Payments Affect Your Credit Score?
Payment history is the most heavily weighted factor in Canadian credit scoring models, accounting for approximately 35% of your score. A single missed payment can drop your score by 60 to 110 points. The longer the payment goes unmade, the greater the damage.
The severity also depends on which account it is. A missed payment on a mortgage is viewed more seriously than a missed payment on a store credit card.
Can Missed Payments Be Disputed?
You can dispute a missed payment if it is inaccurate. Common grounds include: the payment was made on time but the creditor posted it late, the account does not belong to you, or the date is incorrect. You cannot dispute a missed payment simply because you wish it were not there.
Under PIPEDA, Equifax Canada and TransUnion Canada are required to investigate disputes and correct information that cannot be verified by the creditor.
What Can You Do While Waiting?
The most effective strategy after a missed payment is to bring the account current immediately and then maintain a perfect payment record going forward. Each on-time payment adds positive history. The missed payment becomes less significant as more positive history accumulates.
Setting up automatic minimum payments prevents future missed payments, even during difficult financial periods.
When Professional Help Makes Sense
If you have multiple missed payment notations across several accounts, a credit professional can review your full Equifax and TransUnion reports, identify which items may be disputable, and help you prioritize your credit rebuilding strategy.
FAQ
**How long does a missed payment stay on my Canadian credit report?** Six years from the date the payment was missed.
**Does making the payment later remove the missed payment notation?** No. Making a late payment brings the account current but does not remove the notation that the payment was missed. The notation stays for 6 years.
**How many points does a missed payment cost me?** Typically 60 to 110 points, depending on your existing credit profile and how many other negative items are on your report.
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