- On-time and late payments on credit cards, retail accounts, installment loans, business accounts and mortgages are all reported to the credit bureaus. The fewer late payments, the better.
- Negative public records such as bankruptcy, judgments, liens and wage garnishments, along with collection accounts, charge-offs and delinquencies, all lower your credit score.
- For collections and delinquencies, scoring models also look at:
- How long ago the delinquency happened
- How much is still owed on unpaid bills or collection items
- When past-due debts, public records or collection items were last paid
- How many unpaid items are in your file
- How many accounts are paid in full as agreed
Length of credit history matters too, making up about 15% of your FICO score. As you keep using your revolving credit accounts responsibly, your score can continue to rise.
NOTE: If you have a short credit history, avoid opening too many new accounts at once. New accounts lower your average account age, so be mindful when applying for new credit.
When payment history isn't reported correctly
Payment history has to be reported accurately month by month. If a late payment, collection or charge-off on your report has the wrong dates, balances or status, you have the right to dispute it. Learn more about your rights under the FCRA, or book a free credit repair consultation to have your reports reviewed.
