Payment history

Full definition

Payment history is the credit-scoring factor that carries the most weight across all major scoring models. In FICO 8 (the most widely used score), payment history accounts for 35% of the total score. In VantageScore 4.0, it is classified as 'extremely influential.' What is recorded: For each open and recently closed credit account, the bureaus track whether each monthly payment was made on time, 30 days late, 60 days late, 90 days late, 120+ days late, charged off, or subject to a settlement. Every derogatory mark is associated with the specific account and the specific date. Score impact by derogatory type (approximate, varies by prior score): - 30-day late on a current account with no prior lates: 60-80 points - 90-day late: 80-100 points - Charge-off: 100-140 points - Bankruptcy: 100-200 points The higher your score before the derogatory event, the larger the drop (the scoring model penalizes the deviation from expected behavior). A borrower at 760 drops more from a single late payment than a borrower at 620. Recovery timeline: A single 30-day late payment from two years ago, with no other negative marks, has minimal ongoing impact. Most scoring models give increasing weight to recent behavior. Sustained on-time payment for 12-24 months after a derogatory event produces meaningful score recovery. The most important action for building or rebuilding credit: never miss a payment. Autopay for at least the minimum payment eliminates the risk of accidental late payments.

• Credit score
• Delinquency
• Late fee