If your credit score went from 740 to 630 after two 30 day late credit card payments how long will it take for your score to recover?

Answer 1

Credit scores are calculated based on ALL the information reported. Derogatory items, including older collection accounts being updated, legal items being filed and late payments, affect your score in the "history" portion. History accounts for 35% of the score.

Your late payments will appear on your credit report for 7 years. Their impact is significant in the first 12 months and decreases from then on, but they will continue to impact your score for quite some time.

As a general rule of thumb, a 30-day late will drop your credit score by about 50 points. This might seem like a big hit, but it halves after 12 months, then does the same after 24 months. Therefore, after 3 years, the 30-day late payment will still result in a 6-point dip in your credit report.