I’ve written over the past months about the different factors that make up your credit score, and have referenced the site Credit Karma which provides a free scoring service that will help you monitor and improve your credit score. Today, let’s look at on time payments.
This one is a no-brainer. It’s a highly weighted part of your score but it’s also the one that you should never fail to keep at 100%. Even letting one account go past 30 days will have a detrimental impact to your score. It’s very simple. Pay the bill when it’s due. Never let your minimum payments become so large that you risk not being able to pay that bill. For the three cards I regularly use, I have a payment sent automatically each month, enough to cover the minimum so if the bill gets lost or misplaced, my biggest risk is to pay interest, but not to have missed the payment completely. One more article in this series, and then a wrap up and summary. Stay tuned.