Payment History: 35% of Your Credit Score – Episode #81

awjolls — Mon, 10 Nov 2008 13:54:08 +0000

Your credit score has several components but none are more important than payment history. This factor is largest piece of the FICO Score factors pie at 35% because of it’s importance in predicting default/delinquency risk.

While you could say you couldn’t change your payment history. There are a few things to consider

Your payment history might have an inaccuracy. If it does, you need to do a dispute to the credit bureaus using our credit dispute letter template. Remember, federal regulations mean the credit bureaus have to respond to these inquiries.
Your payment history might suggest a goodwill letter opportunity. Perhaps, you have just one late payment with 1 card holder from 2 years ago. You could write a goodwill letter to ask them to have that item removed in exchange for a good faith future relationship with that issuer. They don’t have do anything here.
You can wait out the 7 years for those records to fall off your credit report. Note: the older the late item gets, the less it impacts your score. Recent behavior is the most important.

Make sure you consider setting up auto-pay for your credit card accounts to pay the minimum each month, or even better, to pay off your entire balance.

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Payment History: 35% of Your Credit Score – Episode #81

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Payment History: 35% of Your Credit Score – Episode #81