Payment history accounts for 35% of your credit score

As it is the largest factor being used to determine your credit worthiness a poor payment history can be a real drag on your credit score, more so than any of the other factors.  However, there is more to payment history than just a single late payment. 


What is Payment History?

Payment history is an analysis of of how you pay on your accounts over time.  For this reason, it is the single larges factor in how credit scores are calculated.  All things considered past payment history is the largest indicator of whether a person will repay their debts, and is generally the first priority when lenders consider an application.  

While it is the most important factor, it is not the only factor, therefore, a single late payment won’t kill your credit, just as all on time payments will not produce a perfect score.  Achieving and maintaining an excellent score takes time.

Types of accounts:

Credit cards, including department store credit cards, loans (secured and unsecured) mortgage, collection accounts, bankruptcies,  lawsuits, garnishments, and public records all factor into your credit history.  

Late payments, collection, etc all factor negatively in your credit history.  While on time payments help improve your payment history.


Best Advice:

When possible make every effort to pay all bills on time.  If for some reason you are unable to make your payment.  Contact your creditor to see if an arrangement can be made to keep the payment from reflecting on your credit.