Many people fall behind on bills or struggle with debt. A common concern is how unpaid debt can hurt your credit score. Your credit score matters. It can affect whether you can get a loan, rent a home, or even get a job.

What is a credit score?  

A credit score is a number between 300 and 850 that shows how likely you are to repay borrowed money. Lenders use it to decide whether to approve credit and what interest rate to offer.

Your credit score is based on:

• Whether you pay your bills on time,
• How much debt you owe,
• How long you've had credit,
• The types of credit you have, and
• Whether you've recently opened new credit.

The most important factor is paying on time. Missing payments can lower your score a lot.

What happens when you miss a payment? 

Most creditors don't report a missed payment to the credit bureaus until it is 30 days late. But after that, the impact can be serious. 

• Your credit score may drop, especially if it was high before.
• The late payment can stay on your credit report for up to 7 years.
• Future borrowing may become harder or more expensive.

The longer a bill goes unpaid, the more damage it can cause:

• At 60 or 90 days late, your score may drop again, and
• Between 90-180 days late, the account may go to collections, which also shows up on your report.

Debt in collections and your credit report

When a debt is sent to a collection agency, it usually shows up as a collection account on your credit report. This can hurt your credit score, even if the original account is closed.

Here are some important facts:

• Most types of debt in collections, like credit cards or utility bills, can stay on your report for up to 7 years, even if you pay them later.
• Medical debt is no longer included on credit reports (as of 2025).

Other ways unpaid debt can affect your credit

• Interest and fees can keep growing, making the debt harder to pay.
• Co-signers on the account can also be affected, and
• Your credit limit may go down or your account may be closed.
• If you get a judgment against you for a debt, this will show up on background checks used for housing and employment. 

What you can do

If you are behind on payments or already in collections, you are not alone—and you have options. We're here to help you understand your choices so you can move forward.

Even if your credit score has dropped, you can rebuild it over time. Each step matters: 

• Check your credit report for errors.
• Avoid taking on new debt, if possible.
• Catch up on late bills.
• Pay current bills on time each month.