Finance glossary
Missed Payment
Also known as: Late payment
In simple terms
A missed payment is when you do not pay at least the minimum due on a bill or credit agreement by the deadline. Even one can show on your credit file and add charges.
On this page
What does missed payment mean?
A missed (or late) payment is when you fail to make at least the minimum required payment on a credit agreement or bill by its due date. Lenders report your payment status to the credit reference agencies each month.
A single missed payment is less serious than arrears or a default, but it still leaves a mark.
How a missed payment works
If you miss a payment, the lender usually records it and may add a late fee and extra interest. Miss several in a row and the account can fall into arrears and, eventually, default.
Missed payments generally stay on your credit file for six years, though their impact fades as they age and as you build a run of on-time payments.
How could this affect me?
Missed payments can lower your credit score and make future borrowing harder or dearer. If you realise you will miss one, contacting the lender early can sometimes prevent it being reported or escalate into something worse.
Setting up a Direct Debit for at least the minimum payment is a simple way to avoid accidental misses.
Things to watch out for
- Even one missed payment can show on your credit file for six years.
- Late fees and extra interest can be added on top.
- Several in a row can tip an account into arrears and default.
Know your rights
- Under FCA rules, lenders must treat you fairly if you are in financial difficulty and consider appropriate forbearance.
- You can complain and escalate to the Financial Ombudsman Service if you are treated unfairly.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, What happens if you miss a payment (opens in a new tab). Accessed 22 Aug 2026.