As the most important factor when calculating a consumer’s credit score, payment history accounts for 35% of a FICO Score calculation and is treated as extremely influential under the VantageScore model. A strong payment history can’t guarantee a high credit score, but it is a necessary part of building a healthy credit profile. After a late payment is reported, the later the payment—and the more recent the late payment—the greater the negative impact on your credit score. If you’re building credit for the first time, it can be difficult to overcome the impacts of a short credit history. How to Improve Your Payment HistoryIn general, improving your credit score requires improving your payment history.

Source: Forbes August 04, 2021 12:02 UTC