Give Your Payment History a Lift

Your payment history is the biggest factor in compiling your credit score. 35% of your FICO score and 40% of your VantageScore. With this in mind, it makes sense to try to do everything you can to keep that history pristine. Here are some ways to improve your credit payment history.

Pay on Time

This may sound obvious, but sometimes the simplest things are not easy. The quickest way to boost your payment history is to pay your bills on time, every single time.

How to Pay on Time Every Time

Here are some ways you can ensure that your credit cards are paid on time, consistently.

• Reminders. Whether it’s a calendar reminder or a reminder on your phone, whatever alert you’re most comfortable with to pay on time, set it up today.
• Autopay. One of the quickest ways to overcome human error is automation. If you have the option, set up autopay through your bank or credit card company. That way there’s no way you can forget.

Check Credit Report Regularly

Make a habit of checking your credit report often. You can get free credit reports from the three main bureaus once a month, or access your report with SavvyMoney through online banking.

Why Checking Your Report Matters

Going through your credit report regularly helps to ensure accuracy and prevent fraud.

1. Accuracy. When reviewing your credit report, look for correct information.

• Your credit activity is reported correctly. Paying your bills on time and keeping your utilization low are only working in your favor if you’re getting credit for it. Perhaps an on-time payment was marked as late. That can have a big impact on your score. Check to ensure your payments are up to date and correct. If there’s a missing payment or any other discrepancy, report it immediately to the credit bureaus.

2. Spot Fraud. When you review your report regularly, you can catch suspicious or fraudulent activity early.

• Catch fraud early. Checking your report often allows you to see potentially fraudulent activity, things like new accounts in your name or unauthorized charges. If you see any questionable or fraudulent activity, report it immediately to the credit bureaus.

Set a Schedule

Another way to improve your payment history is to make on-time payments a habit. One way to do that is to have one day per month be your “bill day.” Every time that day rolls around, you make it a habit to sit down and pay all your monthly bills.

Make a Call

If you’re struggling to make payments, take action before your payments are late.

• Contact the credit card company and let them know you’re struggling to make payments.
• Ask about options. Most companies will be willing to work with you. There may be payment plans or hardship options available to you as long as you contact them before your payments are late. A boost in your payment history could be just a phone call away.