What is the difference between a Missed Payment vs a Late Payment?

You’ve probably noticed on your MyMarble Dashboard notifications of a Missed Payment or a Late Payment. Don’t worry, let us help you understand the difference between the two.

Firstly, let’s say you miss a payment, and you don’t pay it back - this is reported on your credit report as a Missed Payment and will negatively impact your score. When you check your credit report, you will see a missed payment reported as a “2”. If you continue to miss payments, it will continue to be reported to the credit bureaus and will further damage your score. On your credit report, you will see continuous missed payments reported as higher numbers such as “3, 4, 5” etc.

Secondly, maybe you forgot to make a credit card payment by the due date, but you make a catch-up payment within the agreed grace period (often outlined in the terms of your agreement – sometimes 5-10 days). This is called a Late Payment. You may receive a late payment fee or a non-sufficient fund fee (NSF) if it was originally a returned payment. However, a missed payment may not have a negative impact on your credit report if you make a timely catch-up payment.

Most importantly, whether your missed payment negatively impacts your credit report is at the discretion of the lender's policy on late payments and any grace periods that are applicable. So, it’s important to always check out the terms of your loan or credit product!