How Long Will A Late Payment Affect Credit Score?

Understanding how long a late payment impacts your credit score is crucial for financial health. This guide provides a comprehensive breakdown of the duration of this negative mark, offering actionable insights and strategies to mitigate its effects and rebuild your creditworthiness effectively.

Understanding How Late Payments Affect Your Credit Score

Your credit score is a three-digit number that lenders use to assess your creditworthiness. It's a snapshot of your financial behavior, and it plays a significant role in whether you can secure loans, mortgages, credit cards, and even rent an apartment. The FICO Score, one of the most widely used credit scoring models, calculates your score based on several key factors. Among these, payment history is the most influential, accounting for approximately 35% of your total score. This means that how consistently you make your payments on time is paramount to maintaining a healthy credit standing.

When you miss a payment on a credit account, such as a credit card, loan, or mortgage, it signals to lenders that you may be a higher risk. This is because timely payments demonstrate reliability and your ability to manage debt responsibly. A late payment, therefore, directly impacts this critical aspect of your credit profile. The severity of the impact depends on several variables, including how late the payment is, how often you've been late in the past, and your overall credit history. However, it's universally understood that late payments are detrimental to your credit score.

The credit bureaus – Equifax, Experian, and TransUnion – are responsible for collecting and reporting this payment information. When a creditor reports a late payment to these bureaus, it gets added to your credit report. This information then feeds into the algorithms that calculate your credit score. The longer a payment remains unpaid past its due date, the more severe the negative consequence for your credit score. Understanding this fundamental relationship is the first step in addressing the question: "How long will a late payment affect credit score?"

Beyond the immediate score drop, a late payment can have cascading effects. It can make it harder to get approved for new credit, lead to higher interest rates on any credit you do obtain, and even affect your ability to secure insurance or certain types of employment. Therefore, preventing late payments and understanding their lasting impact is a cornerstone of sound financial management. This comprehensive guide will delve into the specifics of this impact, offering clarity and practical advice for navigating the aftermath of a missed payment and safeguarding your financial future.

How Long Does a Late Payment Affect Credit Score? The Timeline Explained

The question of "How long will a late payment affect credit score?" doesn't have a single, simple answer because the duration of its negative influence varies. However, there's a general timeline that applies. A late payment typically remains on your credit report for seven years from the date of the delinquency. This means that for seven years, this negative mark can potentially influence your credit score and your ability to obtain credit under favorable terms.

The most significant impact on your credit score usually occurs in the immediate aftermath of the late payment. A single 30-day late payment can cause a noticeable drop in your score, especially if you have a good credit history. The exact number of points lost depends on your existing score, the type of account, and the lender's reporting practices. For individuals with excellent credit (e.g., scores above 750), a 30-day late payment might result in a drop of 50-100 points or more. For those with already lower scores, the percentage drop might be less dramatic, but the overall impact can still be substantial.

As time passes, the severity of the impact generally diminishes. While the late payment remains on your report for seven years, its weight in credit scoring calculations decreases over time. Newer, positive payment history tends to outweigh older negative information. For instance, a late payment from five years ago will likely have a less pronounced effect on your score than one from six months ago. Credit scoring models are designed to reward consistent positive behavior. Therefore, if you can demonstrate a pattern of on-time payments after a late one, your score will gradually recover.

It's important to distinguish between how long a late payment stays on your report and how long it actively affects your score. The seven-year mark is when it's officially removed from your credit report. However, its influence on your score can start to lessen much sooner, particularly if you adopt responsible credit habits. By consistently paying all your bills on time, keeping credit utilization low, and avoiding further delinquencies, you can effectively mitigate the long-term damage and rebuild a strong credit profile.

Consider this timeline:

• Immediate Impact (0-6 months): The most significant score drop occurs. Lenders may view you as a higher risk.
• Moderate Impact (6 months - 2 years): The score may begin to recover gradually as new positive data is added. However, the late payment still carries considerable weight.
• Diminishing Impact (2 years - 7 years): The negative effect continues to lessen as more positive payment history accumulates. The late payment becomes less of a primary factor in score calculation, but it is still present on the report.
• Removal (7 years): The late payment is no longer visible on your credit report and therefore no longer directly impacts your score.

Understanding this timeline is crucial for setting realistic expectations and developing a strategic plan for credit repair. It emphasizes the importance of immediate action to correct behavior and the long-term benefits of consistent financial responsibility.

Factors Influencing the Severity and Duration of a Late Payment's Impact

While the general rule is that a late payment stays on your report for seven years, its actual impact on your credit score isn't uniform. Several key factors determine how severely and for how long a single late payment will drag down your score. Understanding these variables can help you assess your specific situation and tailor your credit recovery efforts.

Your Existing Credit Score

The magnitude of the score drop from a late payment is heavily influenced by your credit score prior to the delinquency. Individuals with excellent credit scores (typically 740 and above) are likely to experience a more substantial point reduction than those with fair or poor credit. This is because a late payment represents a significant deviation from an otherwise perfect payment history. For someone with a history of on-time payments, a missed payment is a red flag. Conversely, for someone with existing negative marks, an additional late payment might have a less dramatic percentage-wise impact, although it still contributes to the overall negative picture.

The Number of Days Late

The duration of the delinquency is a critical factor. Credit card companies and lenders typically have grace periods, and reporting to credit bureaus usually doesn't happen until a payment is significantly overdue. The common reporting thresholds are:

• 30 days late: This is the least severe form of late payment. While it will lower your score, the impact is generally less than for longer periods.
• 60 days late: This indicates a more serious issue with payment ability. The score drop will be more significant.
• 90 days late: This is considered a severe delinquency. It will likely cause a substantial drop in your credit score and may lead to the account being charged off by the lender.
• 120 days late or more: This is the most severe category and can result in the account being sent to collections, further damaging your credit.

The longer the payment is overdue before being reported, the greater the negative effect on your credit score.

Frequency of Late Payments

A single, isolated late payment is less damaging than a pattern of late payments. If you have a history of consistently paying on time, one missed payment will be a noticeable blemish. However, if you have multiple late payments within a short period, or if the late payment is part of a recurring problem, the cumulative effect on your credit score will be much more severe and prolonged. Credit scoring models heavily weigh payment consistency.

The Type of Account

The impact of a late payment can also vary depending on the type of credit account. A late payment on a credit card might have a different effect than a late payment on a mortgage or an auto loan. Mortgages and auto loans are often considered more significant financial obligations, and a delinquency on these can be viewed more seriously by lenders. Furthermore, if a mortgage payment is late, it could trigger a foreclosure process, which is a severe negative mark that stays on your report for seven years and has a devastating impact on your credit score.

Your Overall Credit Mix and History

Your credit utilization ratio, the length of your credit history, and the mix of credit accounts you have can also influence the impact of a late payment. Someone with a long, established history of responsible credit use and a diverse credit mix (e.g., credit cards, installment loans) might weather a single late payment better than someone with a short or limited credit history. The positive aspects of their credit profile can help to offset the negative impact to some degree.

Lender-Specific Policies

While credit bureaus have standardized reporting, individual lenders may have slightly different internal policies regarding when they report a payment as late. Some may report after 30 days, while others might wait until 45 or 60 days. This can influence when the negative mark appears on your credit report and, consequently, when its seven-year clock starts ticking.

By considering these factors, you can gain a more nuanced understanding of how a late payment affects your credit score. It highlights that while the seven-year reporting period is fixed, the severity and recovery time are highly individual.

Impact of Specific Payment Delays: 30, 60, 90 Days, and Beyond

The severity of a late payment's impact on your credit score is directly proportional to how long the payment remains unpaid. Credit bureaus and scoring models differentiate between minor delinquencies and more serious ones. Understanding the specific consequences of being 30, 60, 90 days, or even longer late can help you grasp the urgency of addressing missed payments and the potential damage they can inflict.

30 Days Late

This is typically the first threshold where a late payment is officially reported to the credit bureaus. If you pay within 30 days of the due date, the lender will likely report it as a 30-day delinquency. This is the least severe form of late payment, but it still carries a negative impact. For someone with a good credit score, a 30-day late payment can lead to a score drop of anywhere from 30 to 70 points. The impact is more pronounced for those with higher credit scores because it represents a significant deviation from their established payment history. However, the recovery period for a 30-day late payment is generally shorter than for longer delinquencies, especially if you quickly resume making on-time payments.

Example: Sarah has a credit score of 780. She misses her credit card payment by 25 days. When she finally pays, the credit card company reports it as a 30-day late payment. Her credit score drops to around 710-750. She immediately sets up auto-pay to ensure future payments are on time.

60 Days Late

If a payment remains unpaid for 60 days past the due date, it is reported as a 60-day delinquency. This signifies a more serious issue with your ability to manage your debts. The credit score impact of a 60-day late payment is considerably more severe than a 30-day late payment. The score drop can range from 60 to 100 points or even more, particularly for individuals with previously high credit scores. A 60-day late payment indicates a higher risk to lenders, making it more difficult to obtain new credit and potentially leading to higher interest rates on any credit you do get.

Example: John had a 30-day late payment six months ago and is now 60 days late on his car loan. His credit score, which had partially recovered, now drops significantly, perhaps by 80-120 points, making it challenging to refinance his existing car loan.

90 Days Late

A payment that is 90 days past due is reported as a 90-day delinquency. This is a significant red flag for lenders and credit bureaus, indicating a severe financial strain or inability to meet obligations. The credit score impact is substantial, often resulting in a drop of 100 points or more. At this stage, the account may also be moved to a collections department by the lender. A 90-day late payment can significantly hinder your ability to get approved for any new credit, and existing creditors may even lower your credit limits or close your accounts. The recovery process from a 90-day late payment is much longer and more challenging.

Example: Maria is struggling financially and is now 90 days late on her student loan. Her credit score plummets, and she is denied a personal loan she was hoping to use for an emergency expense. The student loan lender also places her account with a collection agency.

120 Days Late and Beyond (Charge-Offs and Collections)

When a payment is 120 days or more past due, the lender may "charge off" the debt. This means the lender considers the debt unlikely to be collected and writes it off as a loss. A charge-off is a severe negative mark on your credit report and will significantly damage your credit score, often by 100 points or more. After a charge-off, the debt may be sold to a third-party collection agency. A collection account is another serious negative item on your credit report that can remain for seven years, even if you eventually pay it off. The presence of charge-offs and collections makes it extremely difficult to obtain new credit and can lead to aggressive collection efforts.

Example: David's credit card debt went into default and was charged off after he was 150 days late. The account was then sold to a collection agency. His credit score dropped dramatically, making it nearly impossible to rent a new apartment without a co-signer or a larger security deposit.

It's crucial to remember that even after the seven-year period, the memory of severe delinquencies like charge-offs and collections can linger in the minds of lenders, especially for major financial decisions like mortgages. Proactive communication with lenders and prompt payment are the best defenses against these severe consequences.

How Credit Reporting Agencies Handle Late Payments

Equifax, Experian, and TransUnion are the three major credit reporting agencies in the United States. They collect vast amounts of data on consumers' credit activities from lenders, creditors, and public records. This data is compiled into individual credit reports, which form the basis for calculating credit scores. When it comes to late payments, these agencies play a crucial role in how this information is recorded and its subsequent impact.

The Reporting Process

Lenders and creditors are required to report payment information to the credit bureaus on a regular basis, typically monthly. When you miss a payment, the creditor identifies the delinquency. As discussed, they usually don't report it immediately. There's typically a grace period, and reporting often begins when a payment is 30 days past due.

Once the creditor reports a late payment, the credit bureaus record this information on your credit report. This entry will include details such as:

• The name of the creditor.
• The date the account was opened.
• The type of account (e.g., credit card, installment loan).
• The credit limit or original loan amount.
• The current balance.
• The payment history, including the date and severity of any late payments (e.g., 30, 60, 90 days late).
• The date the account was last active or reported.

The credit bureaus do not independently verify the accuracy of every single piece of data reported by creditors. Instead, they rely on the information provided. This is why it's essential for consumers to regularly check their credit reports for errors.

The Seven-Year Rule

A fundamental aspect of how credit bureaus handle negative information, including late payments, is the Fair Credit Reporting Act (FCRA). The FCRA dictates that most negative information, such as late payments, collections, and charge-offs, can remain on your credit report for a maximum of seven years from the date of the delinquency. For bankruptcies, the limit is typically seven to ten years.

This seven-year period applies to the information appearing on your credit report. While the late payment is no longer visible after seven years, its impact on your credit score ceases at that point. However, as noted earlier, the influence of the late payment on your score diminishes over time, even before its removal.

How Scores Are Calculated with Late Payments

Credit scoring models, like FICO and VantageScore, are designed to weigh different factors of your credit report. Payment history is the most significant factor, often accounting for around 35% of a FICO score. When a late payment is present on your report, the scoring algorithm recognizes it as a negative mark. The score reduction depends on:

• Recency: More recent late payments have a greater negative impact.
• Severity: 60-day and 90-day late payments are penalized more heavily than 30-day late payments.
• Frequency: Multiple late payments have a compounding negative effect.
• Your overall credit profile: The impact is greater on higher credit scores.

As time passes and you establish a positive payment history, the scoring models begin to give more weight to this new, positive information, gradually improving your score. The older the late payment, the less influence it has.

Consumer Rights and Disputes

Consumers have rights under the FCRA to dispute inaccurate information on their credit reports. If a late payment was reported in error (e.g., you made the payment on time, or it was reported by the wrong creditor), you can file a dispute with the credit reporting agency. The agency is then required to investigate the claim with the creditor. If the creditor cannot verify the accuracy of the information, it must be removed from your report. This process is crucial for ensuring the accuracy of your credit information and can help remove erroneous negative marks that unfairly affect your score.

Understanding how credit reporting agencies operate provides a framework for comprehending the lifecycle of a late payment on your credit report and its subsequent impact on your score.

Strategies to Rebuild Your Credit After a Late Payment

A late payment can feel like a significant setback, but it doesn't have to be a permanent one. The good news is that credit can be rebuilt, and with a strategic approach, you can recover from a late payment and improve your creditworthiness over time. The key is to focus on demonstrating consistent, responsible financial behavior moving forward.

1. Pay All Your Bills On Time, Every Time

This is the single most important step you can take. Payment history accounts for the largest portion of your credit score. By ensuring that all your current and future bills are paid by their due dates, you start building a positive payment history that will gradually outweigh the negative impact of the past late payment. Set up automatic payments or calendar reminders for all your financial obligations to avoid future delinquencies.

2. Reduce Your Credit Utilization Ratio

Credit utilization refers to the amount of credit you're using compared to your total available credit. High credit utilization can negatively impact your score. Aim to keep your utilization ratio below 30%, and ideally below 10%, on each of your credit cards. If you have high balances, focus on paying them down. Making significant payments can improve your score relatively quickly.

Example: If you have a credit card with a $1,000 limit and a $700 balance, your utilization is 70%. Paying it down to $300 brings your utilization to 30%, which is much better for your score.

3. Avoid Applying for New Credit Unnecessarily

Each time you apply for new credit, a hard inquiry is placed on your credit report. Too many hard inquiries in a short period can lower your credit score. While necessary, avoid opening multiple new accounts unless absolutely essential, especially while you are in the process of rebuilding your credit.

4. Consider a Secured Credit Card

If you're struggling to get approved for traditional credit cards due to past issues, a secured credit card can be an excellent tool. You make a cash deposit that typically equals your credit limit. This deposit reduces the lender's risk, making it easier to get approved. Use the secured card responsibly by making small purchases and paying them off in full each month. This builds positive payment history and demonstrates to lenders that you can manage credit.

Example: A secured card with a $300 deposit will have a $300 credit limit. Using it for groceries and paying the $50 balance each month will show responsible usage.

5. Become an Authorized User (with Caution)

If you have a trusted friend or family member with excellent credit, they might consider adding you as an authorized user on one of their credit cards. Their positive payment history on that account can then appear on your credit report, potentially boosting your score. However, this strategy comes with risks. If the primary cardholder misses payments or runs up high balances, it can negatively affect your credit too. Ensure you have a clear agreement and trust the primary user implicitly.

6. Review Your Credit Reports Regularly

Obtain copies of your credit reports from Equifax, Experian, and TransUnion at least once a year (you can get free copies at AnnualCreditReport.com). Review them carefully for any errors, including incorrect late payment reporting. If you find inaccuracies, dispute them immediately with the credit bureaus. Removing erroneous negative information can significantly improve your score.

7. Be Patient

Credit rebuilding is a marathon, not a sprint. While positive actions can start to improve your score relatively quickly, significant recovery takes time. The seven-year reporting period for late payments means the mark will be on your report for a while. However, by consistently practicing good financial habits, you will see your score improve steadily. The older the negative information becomes, the less impact it will have.

By implementing these strategies consistently, you can effectively rebuild your credit after a late payment and work towards achieving and maintaining a strong credit score for your financial well-being.

Preventing Future Late Payments: Proactive Financial Habits

The best way to deal with the impact of a late payment is to prevent it from happening in the first place. Developing proactive financial habits is key to maintaining a healthy credit score and avoiding the stress and financial consequences of missed payments. Here are some effective strategies:

1. Create a Detailed Budget

Understanding where your money is going is the first step to ensuring you have enough to cover your bills. A budget helps you track income and expenses, identify areas where you can cut back, and allocate funds specifically for bill payments. Knowing your cash flow allows you to anticipate potential shortfalls and make adjustments before they lead to a missed payment.

2. Set Up Automatic Payments

Most lenders and service providers offer automatic payment options. Linking your bank account or credit card to automatically pay your bills each month is one of the most effective ways to ensure you never miss a due date. Ensure you have sufficient funds in your account to cover the automatic withdrawals to avoid overdraft fees or bounced payments.

3. Use Calendar Reminders and Alerts

If automatic payments aren't feasible or you prefer to manually review bills before payment, set up calendar reminders or digital alerts. Most smartphones and online calendars allow you to set recurring reminders a few days before a bill is due. This provides a timely nudge to ensure payment is made.

4. Organize Your Bills

Keep all your bills and financial statements in one place, whether it's a physical folder or a digital system. This makes it easier to track due dates and avoid overlooking any payments. Consider using a bill management app that consolidates due dates and payment information.

5. Communicate with Lenders if You Anticipate Difficulty

If you foresee a situation where you might struggle to make a payment on time (e.g., due to job loss, unexpected medical expenses), contact your lender or creditor *before* the due date. Many lenders are willing to work with you to arrange a temporary payment plan, deferment, or modification that can prevent a late payment from being reported. Proactive communication is often met with understanding and can save your credit score.

6. Review Your Bank Statements Regularly

Regularly check your bank account balance and transaction history. This helps you stay aware of your financial standing and catch any discrepancies or potential issues that could lead to a missed payment. It also helps you identify fraudulent activity.

7. Build an Emergency Fund

An emergency fund acts as a buffer against unexpected expenses. Having savings set aside can prevent you from having to rely on credit or miss bill payments when unforeseen costs arise, such as car repairs or medical bills. Aim to save at least 3-6 months of living expenses.

8. Understand Your Due Dates and Billing Cycles

Be aware of the specific due dates for all your accounts. Billing cycles can vary, and understanding when payments are due helps you plan your finances accordingly. Some accounts may have different due dates each month based on when you opened the account or made your last payment.

9. Avoid Overspending and Accumulating Unmanageable Debt

The best prevention is to live within your means. Overspending often leads to accumulating debt that becomes difficult to manage, increasing the risk of late payments. Be mindful of your spending habits and prioritize paying off existing debt rather than taking on new obligations you can't comfortably handle.

By integrating these habits into your financial routine, you can significantly reduce the likelihood of making late payments and maintain a strong, healthy credit profile.

Your Rights: Disputing Late Payment Errors

Mistakes happen, and sometimes late payments are reported to credit bureaus inaccurately. The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers by ensuring the accuracy, fairness, and privacy of information in the files of credit reporting agencies. Under the FCRA, you have the right to dispute any information on your credit report that you believe is inaccurate, incomplete, or misleading. This includes erroneous late payment reporting.

When to Dispute a Late Payment

You should consider disputing a late payment if:

• You made the payment on time, but it was reported as late.
• The late payment was reported by the wrong creditor.
• The late payment is for an account that is not yours.
• The late payment is older than seven years and is still being reported.
• The creditor failed to report a payment as on time, despite evidence to the contrary.

How to Dispute a Late Payment

The dispute process involves contacting the credit reporting agency directly. Here are the steps:

1. Obtain Your Credit Reports: Get copies of your credit reports from Equifax, Experian, and TransUnion. You can get free reports annually at AnnualCreditReport.com.
2. Identify the Inaccuracy: Carefully review your reports and pinpoint the specific late payment entry you believe is incorrect. Note the creditor's name, the date of the delinquency, and the account number if available.
3. Gather Supporting Documentation: Collect any evidence that supports your claim. This could include:
   • Copies of canceled checks or bank statements showing the payment was made on time.
   • Payment confirmation emails or receipts.
   • Correspondence with the creditor.
   • Statements from the creditor showing a zero balance or incorrect reporting.
4. Submit Your Dispute: You can typically dispute online, by mail, or by phone with each credit bureau. It's generally recommended to submit disputes in writing (especially by mail, so you have a record) to ensure a clear trail.
   • Online: Visit the website of Equifax, Experian, or TransUnion and look for their dispute section.
   • By Mail: Send a written letter to the credit bureau's dispute department. Include your full name, address, Social Security number, and a clear explanation of the error and why you believe it's inaccurate. Attach copies (not originals) of your supporting documents. Keep a copy of your dispute letter for your records.
5. The Investigation Process: Once you submit a dispute, the credit bureau has 30 days (or 45 days if you submit the dispute after receiving a new credit report within the 30-day period) to investigate. They will contact the creditor that reported the information to verify its accuracy.
6. Resolution: After the investigation, the credit bureau will notify you of the outcome.
   • If the information is found to be inaccurate, it must be corrected or removed from your credit report.
   • If the information is verified as accurate, it will remain on your report.

If the credit bureau fails to resolve your dispute properly or if the creditor provides false information, you may have further legal recourse.

Directly Contacting the Creditor

In some cases, it might be beneficial to contact the creditor directly before filing a formal dispute with the credit bureaus. If it was a simple administrative error, the creditor might be willing to correct it internally and notify the bureaus themselves. This can sometimes be a faster resolution. However, if the creditor is uncooperative, then proceed with the dispute to the credit bureaus.

Importance of Accurate Credit Reports

Ensuring your credit reports are accurate is vital. Inaccurate late payment reporting can unfairly lower your credit score, leading to higher interest rates, loan denials, and other financial disadvantages. Regularly monitoring your credit and knowing your rights to dispute errors are crucial components of managing your credit health effectively.

The Long Game: Maintaining Long-Term Credit Health

Understanding "How long will a late payment affect credit score?" is just one piece of the puzzle. True financial well-being comes from a sustained commitment to responsible credit management. The seven-year period a late payment stays on your report highlights the enduring nature of financial habits. While the immediate impact of a late payment may fade over time, its presence serves as a reminder of the importance of consistent financial discipline.

Maintaining long-term credit health involves more than just avoiding negative marks. It’s about building a strong, positive credit profile that opens doors to financial opportunities. This includes securing favorable interest rates on mortgages and auto loans, obtaining credit cards with attractive rewards, and even influencing insurance premiums and rental applications. A consistently high credit score is a powerful financial asset.

The strategies discussed throughout this guide – consistent on-time payments, low credit utilization, regular credit report monitoring, and proactive communication with lenders – are not just for recovering from a setback. They are the foundational pillars of a robust, long-term credit strategy. By embedding these practices into your financial life, you create a resilient financial foundation that can withstand minor challenges and support your major life goals.

Consider your credit score as a reflection of your financial maturity. Each on-time payment is a deposit into your credit reputation, while each late payment is a withdrawal. Over time, the accumulation of positive actions will far outweigh any isolated negative events. The goal is to create a consistent narrative of reliability and responsibility that lenders can trust.

Furthermore, long-term financial health extends beyond credit scores. It encompasses sound budgeting, effective saving, and wise investing. A strong credit score complements these efforts, providing access to capital at reasonable costs, which can accelerate wealth building. For instance, a lower mortgage interest rate over 30 years can save you tens of thousands of dollars. Similarly, favorable credit card terms can offer valuable rewards and benefits.

The journey to excellent credit is ongoing. It requires vigilance, patience, and a commitment to continuous improvement. By understanding the mechanics of credit scoring, the impact of your financial decisions, and the rights you possess, you are empowered to take control of your financial future. Remember, a single late payment is a learning opportunity, not a life sentence. With the right approach and consistent effort, you can not only recover but thrive, building a credit history that serves as a testament to your financial diligence for years to come.

Final Recommendation: Prioritize setting up automated bill payments for all your accounts and maintaining a small emergency fund to cover unexpected expenses. These two proactive steps are the most effective in preventing future late payments and safeguarding your credit score for the long term.