Payment history shows how you've paid your accounts over the length of your credit. This evidence of repayment is the primary reason why payment history makes up 35% of your score and is a major factor in its calculation. Research shows that your track record of payment tends to be the strongest predictor of the likelihood that you'll pay all debts as agreed to. And as you can imagine, a lender's number one priority is your past record of paying back (or not) your loans.
A few late payments are not an automatic “score-killer.” An overall good credit history can outweigh one or two instances of late credit card payments.
However, having no late payments in your credit report doesn't mean you'll get a “perfect score.” Your payment history is just one piece of information used in calculating your FICO Scores.
Account types considered for credit history could include:
These types of events are considered quite serious, although older items and items with small amounts will count less than recent items or those with larger amounts.
Negative factors include:
The tips below might sound a little obvious, but reading them might help give you that push to make that first move. Payment history can be improved upon, but there's only one person who can do that… You. Here's how:
Payment history is the biggest score factor, so it's important to pay close attention to it and make sure your bills are paid on time. Read next about amount of debt and how that factors into your FICO Scores too.