In a Nutshell
Payment history is the record of how reliably you’ve paid your credit obligations over time. Because scoring models usually weigh it heavily, a single late payment can matter — while a long pattern of on-time payments can strengthen your overall credit health.When a lender reviews an application for credit, they want to make sure that you’ll repay the money you borrow.
Your payment history is a good indicator of this, and it’s an influential factor in widely used credit scoring models from FICO® and VantageScore.
Understanding what payment history is, how it factors into your scores and how to improve it can help you avoid surprises — and qualify for credit on better terms.
Keep in mind that the payment history you’ll see with Credit Karma’s free credit scores come from Equifax and TransUnion, using the VantageScore® 3.0 scoring model.
- What is payment history?
- What does your payment history include?
- Types of accounts considered for credit payment history
- What’s next: Ways to improve payment history
- FAQs about payment history
What is payment history?
Payment history is the section of your credit reports that shows whether you paid each reported account on time, and if not, how late you were. Lenders and credit card issuers send updates to the bureaus, typically every billing cycle, and scoring models analyze that track record with particular attention to how recent, frequent and severe any delinquencies are.
Since this factor carries significant weight in most credit-scoring models, the most reliable way to protect your scores is to pay at least the minimum payment by the due date, every time.
Credit score factors: FICO vs. VantageScore
| FICO | VantageScore |
|---|---|
| Payment history: 35% | Payment history: 40% |
| Amounts owed: 30% | Age and type of credit: 21% |
| Length of credit history: 15% | Percentage of credit limit used: 20% |
| New credit: 10% | Balance: 11% |
| Credit mix: 10% | New credit: 5% |
| Available credit: 3% |
What does your payment history include?
Your credit reports capture both positive and negative events. The items below make up the core factors of payment history and indicate how long they’re generally retained.
- On-time and late payments: Each month, your creditor reports whether you paid as agreed. Once a payment is 30 or more days late and reported, it becomes a negative mark that can remain on your reports for up to seven years.
- How overdue a delinquency is: Severity matters. A 60- or 90-day late payment usually has a larger impact than a single 30-day late payment. Each late entry can remain on your reports for up to seven years from the original delinquency.
- Accounts sent to collections: When an unpaid account is turned over to a debt collector, the collection may appear as a separate entry and typically remains for up to seven years, plus 180 days from when the account first became past due.
- Bankruptcies and foreclosures: Certain public records may appear with different lengths of required reporting. Foreclosures may stay on your credit reports for up to seven years. Bankruptcies can remain on your credit reports for seven to 10 years, depending on the type.
- Number of accounts paid as agreed over time: A long, consistent streak of on-time payments across multiple accounts strengthens your profile. Positive closed accounts can continue to reflect on-time history for up to 10 years.
Types of accounts considered for credit payment history
Whether an account’s payment history appears on your credit reports depends on whether the lender reports to one or more bureaus. Here are some examples — keep in mind that this list is not exhaustive.
- Credit cards — bank and co-branded revolving accounts
- Retail credit accounts — store cards
- Installment loans — auto loans, personal loans and student loans
- Mortgage loans — first mortgages and home-equity loans
- Finance company accounts — specialty lenders
- Certain public records/collections — bankruptcies, foreclosures, collection accounts
What’s next: Ways to improve payment history
If you’ve missed payments in the past, there are still steps you can take to make progress improving your credit.
- Get current on missed payments: Bringing past-due accounts up to date stops new late marks and starts rebuilding your payment history
- Use autopay and due-date alerts: Automate at least the minimum required payment, and set reminders so a busy month doesn’t create a negative entry
- Consider a secured card or credit-builder loan: These tools are designed to help you establish or rebuild your on-time payment habits
- Talk to your creditors if you’re struggling: Ask about hardship options that can help you stay current during setbacks
- Review your credit reports and dispute inaccuracies: If you find an error — like a late mark that shouldn’t be there — dispute the error with the bureaus and the lender
- Avoid new delinquencies: If you can’t pay in full, pay at least the minimum payment by the due date to protect your record
- Give it time: As you add months of on-time payments, older late payments generally have less impact on your credit scores
FAQs about payment history
Bring any past-due accounts current and set up autopay and reminders to prevent new late payments. Review your credit reports regularly. If you find an inaccuracy — such as a late payment that shouldn’t be there — dispute it with the credit bureaus and the company that reported the information.
Creditors and other lenders report your monthly account status to the credit bureaus. Scoring models then analyze that record — heavily weighing payment history — to estimate the likelihood you’ll repay on time. Lenders may also use proprietary models and consider other factors like income, employment and overall debt.
Most late payments, collection accounts and foreclosures can remain on your credit reports for up to seven years. Certain types of bankruptcies can remain for up to 10 years. And closed accounts in good standing can continue to appear for up to 10 years.
Payment history is one of the most influential factors in many scoring models. The precise weight varies by model, but it is generally the largest component — one reason consistent on-time payments are so important.
A late payment typically affects your scores once it’s reported at 30 or more days past due. The impact depends on your credit profile. More-recent or repeated delinquencies usually hurt your credit more, while older, isolated late payments tend to matter less as you add positive payment history.