Consumer Credit Bureau Reporting FAQs
10 Min Read | April 1, 2023
Here’s a selection of frequently asked questions that may help you better understand how to protect your credit if you miss a payment. These FAQs apply only to American Express Personal Cards, and only consumer credit bureaus are referenced.
How Late Payments Are Reported to Consumer Credit Bureaus
Relevant credit account information, such as your account balance and credit limit, is reported to the credit bureaus each month on your billing period’s closing date.
Late payments do not result in immediate reporting. Rather, the account status will be reported after it becomes 30 days past due. Just like all other credit bureau reporting, this happens on your billing period’s closing date.
So, if you miss your minimum payment due for two consecutive months, your account will be reported as past due on your next billing period’s closing date.
For example, Mark’s billing period is September 20 – October 19, with the minimum payment due on November 13. Mark misses this payment. On December 13, if he still has not paid his minimum due, the account will become 30 days past due. On December 19 if he has still not paid any minimum due, the account will be reported as 30 days past due to the consumer credit bureaus.
If your account is reported as past due, your past due status will continue to be reported on each subsequent billing period's closing date until you pay the minimum due. Your past due status will appear on your credit report, usually with a number to reflect how late your payment is (30, 60, 90, or 120+ days past due).
The past due status, past due balance and your most recent 24 months of payment history is reported.
Depending on your circumstances, additional negative information related to the past due status might appear on your credit report. As one example, your Card account may be cancelled if it remains past due. This involuntary account cancellation will appear on your credit report, along with your past due amount and your payment history. Read more about account cancellation here.
There are multiple credit scoring algorithms available that consider a wide variety of factors, making it hard to predict exactly what impact any negative reporting could have on your credit score. The more recent, severe, or frequent the negative information being reported, the greater the impact it could have, according to myFICO, the provider of the most-used credit scoring models. For example, a recent charge-off will likely hurt a credit score more than one instance of a 30-day late payment.
The Credit Score Simulator from American Express® MyCredit Guide can show you how different actions and behaviors might influence your credit score.
Additional Card Member Reporting
An American Express Additional Card Member must be at least 18 years old for account activity to appear on their credit report. If the Additional Card Member is of age, only positive account activity, such as account status resulting from on-time payments, will be reported to the Additional Card Member’s consumer credit report.
If the Primary Card Member’s account is reported to the consumer credit bureaus as past due, reporting on any Additional Cards will be removed from their consumer credit reports. If the Primary Card Member pays to current, positive reporting of the Additional Cards will resume.
Preventing Negative Information From Being Reported to the Consumer Credit Bureaus
To help protect your credit score after missing one payment, the best option is to pay to current in time to avoid being negatively reported to the consumer credit bureaus. If you’re experiencing financial hardship and that’s not possible, enrolling in the American Express® Financial Relief Program may protect your credit score more than taking no action at all.
Yes. If you pay to current, you will no longer be reported as past due. Your most severe past due status will remain on your credit report for up to 7 years after it is first reported, but you won’t be reported as further past due.
For example, Noah’s account is reported as 90 days past due but he pays to current before being reported as 120 days past due. Noah’s account will now be reported as current, but the prior 90-days past due status will remain on his credit report.
If you enroll in the American Express Financial Relief Program (if eligible), your account will continue to be reported as past due, but no further past due, as long as you comply with the Program’s terms and conditions. Your most severe past due status will remain on your credit report for up to 7 years after it is first reported.
For example, Kim’s account is reported to the bureaus as 30 days past due, but she immediately enrolls in the Financial Relief Program. The 30-days past due mark will remain on her credit report, but as long as she complies with all the terms and conditions of the Program, she will not be reported as any further past due.
Life’s fast pace can make it easy to accidentally miss a payment. Activating payment reminder alerts can help by sending you an email or text reminder that your payment due date is a few days away. Similarly, enrolling in AutoPay may be able to help you avoid missing payments in the future, as long as your connected bank account has sufficient funds. With AutoPay, you can choose to pay the minimum due, your full balance, or any amount in between.
You can activate payment reminders and enroll in AutoPay through your online account. You can also choose to receive AutoPay Payment Reminders, which let you know when your scheduled payment will be debited from your bank account. This gives you the chance to review or adjust your AutoPay settings before the payment is made.
Account Cancellation Credit Impact
If your Card account is cancelled because it’s past due, your account will be reported as “cancelled by credit grantor” to the consumer credit bureaus. In addition, American Express will report how many days past due your account was at the time of cancellation (e.g., 30, 60, 90, or 120+ days past due), as well as the past due balance. This type of cancellation is considered a negative mark on your credit report.
Note that your past due amount will continue to be reported even after your account is closed. Continued nonpayment may eventually result in the account being reported as charged off, a negative account status which will have additional negative impacts on the account holder’s credit report and score. If you pay off the amount due in the future, American Express would report it as a “paid charge off.”
If your Card is cancelled due to inactivity, it will appear as such on your credit report, along with the date the account was closed. This type of cancellation is not a negative mark on your credit report, but the cancellation could potentially decrease your credit score.
To learn more about credit card inactivity, read Should You Close a Credit Card with a Zero Balance?
If you voluntarily cancel your Card account, it’ll be reported to the credit bureaus as “closed at consumer request.” The date the account was closed will also appear. Though not a negative mark on your credit report, voluntary account cancellation could potentially decrease your credit score. For more, read Should You Close a Credit Card with a Zero Balance?
American Express® Financial Relief Program
Enrolling in the Financial Relief Program (if eligible) is a positive step toward proactively managing your debt. So, the act of enrolling does not result in negative reporting to the consumer credit bureaus. However, other aspects of your account may be negatively reported at the same time, such as your account’s past due status, a credit limit reduction, etc.
For example, Ravi enrolls in the Financial Relief Program on the same day that his account is reported as 30 days past due. That past due status would be reported regardless of whether or not he enrolled in the Program.
Yes, as long as you enroll within the timeframe required to prevent negative reporting. If you enroll in time, American Express effectively “freezes” the age of your balance, preventing negative reporting for as long as you continue to meet the Program’s terms.
If you enroll after you’ve already been reported as past due, you will not be reported as further past due so long as you continue to meet the terms and conditions of the Program. Terms will be communicated to you at the time of enrollment.
For example, Dylan misses their minimum payment due for the billing period closing on March 31. They enroll in the Financial Relief Program before their May 31 closing date and therefore avoid being reported as past due. Dylan continues to meet the Program’s terms and ultimately pays off their balance. This prevents negative reporting and may help protect their credit score.
If you are experiencing a temporary financial setback, the short-term payment plan can provide relief for eligible Card Members for up to 12 months following enrollment.
- Short-term payment plan participants may be able to make purchases up to a reduced spending limit.*
- Enrollment in a short-term plan is not reported to the consumer credit bureaus.
If you are facing ongoing financial hardship and are unsure how long it will last, the long-term payment plan can provide relief for eligible Card Members for a longer period of time.
- You will be unable to use your Card to make purchases while in the Program.
- Enrollment in a long-term payment plan is reported to the consumer credit bureaus. This will not directly impact your credit score, but it will be visible to other lenders.
Otherwise, both plans offer the following benefits for the duration of the Program:
- Your minimum monthly payment due may be reduced.
- Your Annual Percentage Rate (APR) will be lowered for balances subject to an interest rate, unless you have an APR that is lower than the Program APR, in which case the lower APR will apply until that APR expires (if that rate has an expiration).
- Late payment fees and annual membership fees will be waived.
- Plan length is subject to eligibility criteria that is assessed at the time of enrollment.
* If, prior to enrollment, you are at or over your spending limit, you will not be able to make purchases until you bring your balance below the limit. You will also not be able to make purchases if your account is cancelled, if any of your accounts or loans are past due, or if a payment has been returned.
If you are experiencing financial hardship, the best way to help protect your credit score is to enroll in the Financial Relief Program, if eligible. Enrolling may protect your credit score more than taking no action and letting your account remain past due.
It’s best to enroll in the Program before your account is reported as past due. But enrollment may still be beneficial even if your account was already reported as past due. This is because enrollment will prevent your account from being reported as any further past due as long as you continue to comply with the Program’s terms and conditions. The less severe the past due status, the less severe any credit score impact is likely to be.
While enrolling in the Financial Relief Program can be an effective way of managing your payments during financial hardship and help mitigate credit score impact, aspects of the Program could affect your creditworthiness. For example,
- If your credit limit is reduced when you enroll in the Program, it may have a negative impact on your credit score.
- If you do not comply with the Program terms – for example, by missing a payment – that information may be reported to the consumer credit bureaus, potentially having a negative impact on your credit score.
- If you are removed from the Program because you do not comply with the Program terms – for example, by missing consecutive payments – your Card account(s) may be cancelled, potentially having a negative impact on your credit score.
- If you enroll in the Program’s long-term payment plan, your participation will be reported to the consumer credit bureaus. Being enrolled in a payment plan does not directly impact credit scores. But that status will be visible to other lenders who may use the information when determining your creditworthiness.
General Credit Score FAQs
FICO® and VantageScore® credit score by TransUnion® are the two main credit scoring models. They each use their own proprietary algorithms to calculate your credit score based on the information that appears on your credit reports. Credit score calculations take into account various factors, including payment history, total outstanding debt, length of credit history, mix of credit, and recent credit inquiries.
For more information, read How Is a Credit Score Calculated?
Most credit grantors including American Express report to the consumer credit bureaus monthly. The agencies that updated your credit score use various information sources and scoring models so the frequency of how often the credit score is updated depends on the source from which you’re accessing your score.
MyCredit Guide is updated weekly when you log into your account. Some card issuers or banks might provide an updated score every month as part of your billing statement, while other resources might offer daily credit score updates.
For more information, read How Often Does a Credit Score Update?
To improve your credit score, it’s important to maintain good credit habits over time. This includes making on-time payments and paying any past-due accounts to current. Payment history is a major factor in determining your credit score, so the longer you pay your bills on time after being late, the more likely you’ll start to see improvements.
It can also help to start reducing the amount of debt you owe. Creating a budget can help you get on track to make consistent on time payments. And, if possible, avoid taking on new debt. For more information, read How to Improve your Credit Score.
Remember that there’s no quick fix to improve your credit score. Doing so takes time and effort.
FICO® and VantageScore® credit score by TransUnion® are both commonly used credit scoring models. Each scoring model uses its own algorithm to calculate credit scores, but both are valuable tools that you – and lenders – can use to assess your creditworthiness.
FICO® and VantageScore® credit score by TransUnion both range from a low of 300 to the most favorable score of 850 or 900. While most credit scoring models range from 300-850, there are a few that extend up to 900.
For more information, read FICO Scores vs Credit Scores.
How long negative information stays on your credit report depends on the type of negative information reported. Most negative information, such as past due payments or charge-offs, is reported for 7 years after first being reported. Bankruptcy information stays on your report for up to 10 years.
Note that paid charge off accounts with a billing address in the state of New York will be reported for up to 5 years from first being reported, after which reporting will cease.
Still have questions?
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