📊 Why Payment History Is So Important
Your credit score tells lenders how trustworthy you are with money. Out of all the things that impact your score, payment history is the biggest piece — a full 35%! That means even just one late payment can lower your score, affect your loan approval, or change the interest rate you’re offered.
Late payments, judgments, charge-offs, collections, and bankruptcies can hurt your score for years. For example, a bankruptcy stays on your credit report for up to 7 years. And unpaid court judgments? They’ll need to be settled before you can close on a home loan.
🏡 Why Mortgage Payments Matter Most
When it comes to home loans, mortgage payments are a big deal. Lenders pay close attention to whether you’ve made them on time. Even one late mortgage payment in the last year can raise red flags, slow down your approval, or lead to a higher interest rate.
Your other debts count too — car loans, credit cards, and even student loans. The more recent and frequent your late payments, the more they drag your score down. If they’re 60 or 90 days late — or consecutive — the damage is even worse.
💡 4 Easy Ways to Boost Your Credit Score
Here are four practical tips to help improve your credit score and keep it healthy:
✅ 1. Make Your Payments On Time
This is the golden rule. Set reminders or use autopay to stay on track.
🔁 2. Bring Delinquent Accounts Current
If you’re behind, catch up ASAP. Even one overdue bill can hurt your score.
🚫 3. Avoid Collections
Pay your bills before they go to collections. Once it’s there, it’s hard to reverse the damage.
🔍 4. Monitor Your Credit Report
Check it regularly. Fix errors fast and dispute anything that looks wrong.
📈 Number of the Week: 35%
That’s how much your payment history impacts your credit score. That’s more than any other factor — even credit usage or length of history!