delinquency
A failure to make a payment on a loan or debt by the due date, typically categorized in 30, 60, or 90-day increments on a credit report.
Example
“A 90-day delinquency on a mortgage payment severely damaged his credit score.”
Memory Tip
DELINQUENT payment = failing your duty. 30, 60, 90 days late.
Why It Matters
Delinquency directly impacts your credit score and can make it difficult to obtain loans, credit cards, or favorable interest rates in the future. Lenders use delinquency history to assess your reliability as a borrower, so even one missed payment can have lasting consequences for your financial opportunities.
Common Misconception
Many people believe that delinquency only occurs after missing a single payment, but accounts typically become delinquent after 30 days past the due date. Missing a payment by a few days does not automatically result in delinquency status on your credit report.
In Practice
If you have a credit card payment due on the 15th of the month and you do not pay by that date, the account becomes 30 days delinquent on the 15th of the following month. If you still have not paid by the 15th of the month after that, it becomes 60 days delinquent, and this progression continues, each stage causing additional damage to your credit score and potentially leading to higher fees.
Etymology
From Latin 'delinquere' (to fail, offend) — to FAIL in one's financial duties.
Common Misspellings
Check your credit score free — no impact
Related Terms
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