How Do I Fix My Credit Score After Missing a Credit Card Payment?

By Julien Brault, founder of MooseMoney.

Credit card issuers typically report late payments to Equifax and TransUnion in 30-day intervals, so catching up before that first 30-day window closes could prevent the missed payment from ever appearing on your credit report. A single late payment that does get reported could lower your score by over 100 points and remain on your file for up to six or seven years, but the damage fades over time and is far from permanent if you act quickly.

"The first thing you should do once you realize you missed a credit card payment is make sure you pay. Do that as quickly as you can. The way we report to the bureaus is in 30-day blocks. So, if you're between zero and 30 days late, we may not even report your late payment," noted Richard Goyder, Chief Credit Risk Officer at Neo Financial.

Matt Fabian, Director of Financial Services Research at TransUnion, echoed that point. "If there's a one-time missed payment, as long as you make up for it within a month, your credit score is going to go down slightly, but it's not going to get damaged permanently. Your credit score will be more heavily affected if you miss multiple payments," he stated.

The distinction between a single slip and a pattern of missed payments matters enormously. "If it's simply a one-off and all your other payments are on time, that is not going to have a very bad impact on your file. If you have lots of late payments, then that starts to make a much bigger impact on your credit score," said Richard Goyder, Chief Credit Risk Officer at Neo Financial.

Steps to Rebuild After a Missed Payment

Once you have made the overdue payment, pull your free credit report from both Equifax and TransUnion. Every Canadian can request a free copy from each bureau once a year. Check that the late payment is recorded accurately and dispute any errors, because inaccuracies can drag your score down unnecessarily.

Next, focus on the two factors that carry the most weight in your credit score. Payment history accounts for roughly 35% of your score, so set up automatic payments or calendar reminders to ensure you never miss another due date. Even paying only the minimum by the deadline protects your record. Credit utilization, which measures how much of your available credit you are using, is the second-largest factor. Keeping your balances below 30% of your total limit helps, and under 35% is where you start to see meaningful improvement.

Avoid applying for several new credit products in a short period. Each hard inquiry can shave a few points off your score, and multiple applications signal financial distress to lenders. Keep older accounts open as well, because the length of your credit history contributes positively to your score.

When a Secured Credit Card Can Help

If your missed payment was part of a broader pattern and your score has dropped significantly, a secured credit card, such as the Secured Neo Mastercard, can be helpful. A secured card works like a regular credit card, but you provide a refundable security deposit that typically sets your credit limit. Getting a secured card, which everyone gets approved for, allows you to increase your total credit limit and, as a result, diminish your utilization rate and increase your credit score. 

Rebuilding a credit score is not instant. A single missed payment that was caught within 30 days may only cause a temporary dip. A pattern of delinquencies can take several months to a year of disciplined behaviour before lenders see meaningful improvement. The key variables are paying every bill on time going forward, keeping balances low, and avoiding unnecessary new credit applications.