PAY YOUR BILLS ON TIME

Consistently paying bills on time is a very important factor considered with your FICO® Score. On-time payments can have a positive impact on your FICO Score over time, while a history of late payments can have a negative impact. The more recent the late payments occurred, the greater the impact they will likely have on your FICO Score. As late payments age, their effect on your FICO Score will gradually lessen.

 

Bottom Line:

Paying ALL bills on time can positively affect your FICO Score over time.

 

FORGET TO PAY A BILL

Missing a payment can substantially affect your FICO® Score. The more recent, frequent, and severe the late or missed payment, the greater the impact is on your FICO Score. A newly posted late or missed payment will have a greater impact on your FICO Score if there is a long-standing history of on-time payments, and less of an impact if negative items are already on the credit report.

 

Bottom Line:

Missing a bill payment can negatively affect your FICO Score.

 

DON'T PAY ANY OF YOUR BILLS

A history of late or missed payments can substantially affect your FICO® Score. The more recent, frequent and severe the late or missed payments, the greater the impact on your FICO Score. Multiple late or missed payments will have a greater impact on your FICO Score if there is a long-standing history of on-time payments, and less of an impact if negative items are already on the credit report.

 

Bottom Line:

Not paying bills that are due can negatively affect your FICO Score.

 

DECLARE BANKRUPTCY

A bankruptcy can severely damage your FICO® Score. Generally, the more recently the bankruptcy was filed, the greater the impact it will have on your FICO Score. A bankruptcy will also have a greater impact if there are few or no negative items on the credit report and less of an impact if negative items are already being reported.

 

Bottom Line:

Declaring bankruptcy can have a severe negative impact on your FICO Score.

 

AGE YOUR CREDIT

Generally, the longer your credit history has been established, the more positive an impact it'll have on your FICO Score. As a credit report ages, factors such as reported inquiries and negative items can either fall off the report (most negative items stop being reported after 7 years) or become less recent, which may gradually lessen the impact on your FICO Score (assuming NO new negative factors are reported and balances either decrease or remain unchanged over the same time period.

**NOTE:  Remaining inactive on one's credit may result in becoming unscoreable (FICO Scores require there to be activity reported on at least one account in the last six months as part of the minimum scoring criteria).

**FICO Score Ingredients Impact: Length of Credit History (15% of a FICO Score); Amount of Debt (30% of a FICO Score); Payment History (35% of a FICO Score); Amount of New Credit (10% of a FICO Score).

 

Bottom Line:

The longer a credit history has been established, the more it can positively affect your FICO Score. 

 

MISSED A PAYMENT BY 90 DAYS

Having an account go 90 days past due can substantially affect your FICO® Score. The more recent, frequent, and severe the late or missed payment, the greater the impact on your FICO Score. A newly posted 90 day past due will have a greater impact on your FICO Score if there is a long-standing history of on-time payments, and less of an impact if negative items are already on the credit report.

 

HAVE AN ACCOUNT GO INTO COLLECTION

Having an account go into collection can severely affect your FICO® Score. Generally, the more recent the collection, the greater the impact it'll have on your FICO Score. How a collection affects your FICO Score depends on the amount of the collection as well as other information on the credit profile. A collection will likely have a greater impact on your FICO Score if there is a long-standing history of on-time payments and less of an impact if negative items are already on the credit report. NOTE:  FICO Score 8 doesn't consider collections with an original amount that is less than $100.

 

APPLY FOR NEW CREDIT

When you apply for new credit, your lender may check your FICO® Scores and credit reports, which posts a credit inquiry to your credit report. Credit inquiries remain on your credit report for 2 years, but FICO Scores only consider credit inquiries from the past 12 months. Generally, applying for and obtaining new credit indicates greater credit risk and can affect a FICO Score. How much of an impact applying for new credit has on your FICO Score depends on a variety of factors, including one's credit history, how many new accounts have recently been opened, and the type and number of inquiries posted.