Your payment history could affect your credit score

Your credit history accounts for 35 percent of your credit score. That’s why your payment history is one of the most important factors in deciding your credit score. Other factors that affect your credit score including balances, credit history, type of credit and inquiries takes a back seat to payment history. There are aspects of payment history that affect your credit score negatively.

• Serious delinquencies such as foreclosure, repossession, short sale and bankruptcy drive down your credit score.
• Late payment negatively impacts your credit score. Avoid being late on paying your bills. If you failed to pay a bill on time because you were out of town or had to attend to an emergency, pay the bill as soon as possible. Call the creditor immediately after your payment and see whether they are willing to forgo the late payment and not report it to credit agencies. Many will accept genuine reasons for being late.
• Paying 30 days late may be better than paying 60 days late. No matter what, pay as soon as possible.
• Recent delinquencies affect your credit score more than delinquencies from a year ago. Try not to repeat it.