Credit Score Boost: How Your Behavior Affects Your Credit

Past payment credentials – up to 35%

This is in fact the top concern of potential lenders: Will you pay them back, and on time? To determine this, they may consider the following factors from a credit report to gauge your financial trustworthiness:

  • Do you pay your bills, loans, and credit card payments on time?
  • If you have been late, is this a consistent problem? The longer you have delayed, the more the negative impact on the credit score.
  • Do you have a history with credit or debt collection, bankruptcy, foreclosure, or lawsuits due to delayed or non-payment?

To lenders, late payments may be due to financial instability, but non-payments indicate unreliability. However, they will still consider your recent history before finalizing your credit score.

Therefore, if you declared bankruptcy five years ago but have a clean payment history for the past year, your financial credibility can be salvaged.