Credit payment history determines 35% of a FICO Score
The first thing any lender wants to know is whether you’ve paid past credit accounts on time. This is one of the most important factors in a FICO ® Score.
A few late payments are not an automatic "score-killer." An overall good credit picture 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.
Credit payment history on many types of accounts
Account types considered for payment history include:
- Credit cards (Visa, MasterCard, American Express, Discover, etc.)
- Retail accounts (credit from stores where you shop, like department
store credit cards)
- Installment loans (loans where you make regular payments, like car loans)
- Finance company accounts
- Mortgage loans
Public record and collection items
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:
- Bankruptcies - will stay on your credit report for 7-10 years, depending on the type
- Wage attachments
Details on late or missed payments ("delinquencies") and public record and collection items
FICO ® Scores consider:
- How late they were
- How much was owed
- How recently they occurred
- How many there are