The One Factor That Most Affects Your Credit Score

Our coaches get a lot of questions about credit scores. For people who want to buy a home, or a car, or even rent an apartment that one number can mean the difference between a “yes” and a “no”.

Credit score is based on credit history, and history is in the past. So there’s not much you can do about what’s already happened. But the number one thing you can do to improve your credit score (or keep it high) is to make payments on time and in full, every time. Payment history makes up the largest portion (about 35%) of your FICO credit score. A late payment on a credit card or auto loan can meaningfully drop your credit score and stays on your credit history for seven years (the impact fades over time, after 2 years it will matter less.)

We’re big believers in automating what you can so you don’t have to remember every month. If you can set up automated payments for credit accounts that’s a great way to make sure forgetting the credit card bill is due one time doesn’t stay with you for the next seven years.

You can read more about credit scores here: BrightDime – Does My Credit Score Matter?