Credit Score and the Importance of Payment History

While you are working towards eliminating your consumer debt, one of the most important aspects to impact your credit score is your payment history. According to, your payment history is the largest influence in determining your credit score.

As long as you maintain a positive payment history, it is quite possible to maintain a high credit score even while battling with your overall debt. The following factors compose your payment history:

Account payment information on all types of accounts, such as credit cards, installment loans, mortgages and retail accounts.

  • Presence of collection items, bankruptcy, liens and/or delinquency.
  • Severity of the delinquency.
  • Amount past due on collection items and/or delinquent accounts.
  • Time since collection items, delinquency or other adverse public records such as bankruptcy.
  • Number of delinquent accounts on record.
  • Number of accounts paid as agreed.

Delinquent payments and collection items can have a major negative impact on your credit score; therefore it is critical to pay your bills on time. As long as you make at least the minimum payment by the due date, you will keep your accounts in good standing and avoid the damage of delinquent payments.

If you have missed payments, you need to try and get current and then stay current. The longer you pay your bills on time, the better your credit score. Your credit score will not improve immediately, but a consistent record of paying on time will result in a better credit score over time.

Share your comments, questions or other credit tips below.

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2 Responses

  1. One of the intriguing things I learnt was seeing how each company differed with their ratings and data they listed for my payment history.

  1. April 17, 2007

    […] of the first posts that I made here at My New Choice was about the importance of payment history on your credit […]

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