There are five categories that make up the FICO score, and most of the other "consumer/educational scores" that are sold also use the same categories in calculating the score.

Many people want to know what they can do to get higher credit scores.  What's the best thing to do to help scores?  Pay all your bills on time.  Every time.

The #1 factor in the FICO score is Payment History. 
A late payment shows up on credit reports when it is more than 30 days past due.  So when a monthly payment is missed, it typically is reported on the credit reports.  If two payments in a row are missed, then there is a 30 day late and a 60 day late on the credit file.  If three monthly payments in a row are missed there would be a 30, 60 and 90 day late reported. 

NOTE:  A late payment of a few days or even two weeks is usually NOT reported to the credit bureaus.  The consumer will likely have to pay a late payment fee and may incur higher interest rates on the account as a penalty, however payments more than 30 days late are what get reported.

LATE PAYMENT IMPACT
A 60 day late is more detrimental than a 30 day; a 90 day hurts scores more than a 30 or 60.  Recent late payments have more of a severe impact on credit scores than an older late payment.  Example: a 30 day late reported in the past six months can hurt scores more than a 90 day payment listed five years ago.

WHAT TO DO

It is not too late to start.  Make all your payments on time or even early.  Mark your calendar or planner, develop a bill organizing system that works for you and your budget.  If you had some late payments in the past, don't think you're doomed forever.  They stay on up to seven years however the negative impact diminishes as time goes on.

If your payment is late, contact the company to ask what impact it has on your account.  Ask if it is reported to the credit bureaus.  If you had extenuating circumstances, explain them and ask for a supervisor that can make adjustments to interest rates, fees, etc. if needed.  Be sure to write down the date and time of the call, the person's name and what they told you.  Then do a credit report check in two months to be sure it is NOT reported as they said it wouldn't be.  If there is a problem, you'll have all of your notes to work with to get it corrected.

Beware that items that don't normally get reported on credit reports such as library fines and utility bills that are not paid in a timely manner can actually show up on credit reports as collections.  So again, it is best to pay all bills on time, every time.

If you have questions on your credit report and how things are reported on it, we are here to help.  Our individual consulting services have assisted in the correction of thousands of credit report errors, including inaccurate late payments.  Contact us today for more information.