Did you know that your credit payment history determines up to 35% of your credit scores? That’s according to credit score company FICO.

In fact, your payment history usually the first thing a lender wants to know. Whether you’ve made your credit payments on time is one of the most important factors in determining the risk of lending to you.

Note: you can find our tips for removing late payments and reducing their effect here.

Types of Credit Payment Histories

Most accounts that appear on your credit report will include your payment history. There are many different types of accounts that the credit bureaus will collect payment data from, including:

  • Credit cards (Visa, MasterCard, American Express, Discover, etc.)
  • Retail accounts (store credit)
  • Installment loans (auto loans, personal loans)
  • Finance company accounts (small personal loans)
  • Mortgages

The Effect of Late or Missed Payments

Of course, the best possible payment history is one with every payment made on time. But few people have a perfect payment history on every account.

Fortunately, a few late payments here and there doesn’t automatically mean your credit score will be severely impacted. If your overall credit history is long and excellent, that will be more important than one or two late credit card payments.

However, late payments are rarely the only weakness in your credit profile, and even one late payment can enhance the negative effect of other problems like balances that are too high.

How FICO Looks at Late Payments

Not every late payment will have the same effect on your credit scores. There are several factors that credit scoring models consider. According to FICO, they look at:

  • How late your payments were
  • How much was owed
  • How recently they occurred
  • How many there are


It’s difficult to figure out just how much of an impact on your credit scores that your late payments may be having.

The surest way to find out is to see if they are verifiable, and if not, to get them removed from your credit reports.

Fortunately, our credit experts handle inaccurate late-payment removal every day, among many other negative items. Give us a call or message today!

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