Credit and Payment History

Payment History is a major factor in credit reporting, making up 35% of your overall credit score.  Knowing this, the following are some things that can positively or negatively affect this category:

• On-time and late payments on accounts such as credit cards, retail accounts, installment loans, finance business accounts, and mortgages are all reported to the credit bureaus.  The fewer late payments, the better.
• The presence of unfavorable public records, such as bankruptcy, verdicts, lawsuits, liens, wage garnishments, items in collections, and delinquencies all hurt your overall credit score.
  •  Factors specific to collections and delinquencies:
    • Delinquency duration
    • Amount owing on unpaid bills or other collection items
    • The date that past-due debts, negative public records, or collection items were last paid
    • Number of unpaid items in the file 
    • Number of accounts paid in full as agreed

Length of Credit History is also very important in credit reporting, making up 15% of your overall credit score.  As you continue to use your revolving credit accounts responsibly, your score will continue to rise.

NOTE: If you have a short credit history, refrain from opening too many new accounts at once.  New accounts lower your average account age, so be mindful of this as you apply for new credit accounts!