Is 98 payment history good?

There is a very slim margin allowing for late payments before your credit score starts to suffer: 100\% – Great. 99\% – Good. 98\% – Fair.

How much does payment history affect your credit score?

Your FICO® and VantageScore® are two common credit scores lenders can use when looking to assess your financial track record. Both weigh payment history heavily among many factors affecting your credit scores. In fact, payment history accounts for about 35\% of your FICO® Score.

Is 687 a bad credit score?

A 687 FICO® Score is Good, but by earning a score in the Very Good range, you could qualify for lower interest rates and better borrowing terms. A great way to get started is to check your credit score to find out the specific factors that impact your score the most and get your free credit report from Experian.

What is a bad payment history percentage?

Your payment history documents whether you’ve paid your bills on time and outlines a detailed history of your bill payments for each of your reported accounts. The Federal Trade Commission notes that late payments negatively affect your credit score, and according to CNBC, payment history makes up 35\% of your score.

What is considered a good payment history?

An unblemished or perfect payment history tells lenders that you are a reliable and low-risk borrower which increases your odds of receiving a new loan or credit card with lower interest rates. If you have a history of missed or late payments, you are considered a higher risk by lenders.

How long does bad payment history stay on credit report?

approximately seven years
Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.

Can I buy a house with a 687 credit score?

Is 687 a Good Credit Score? A 687 FICO® Score is considered “Good”. Mortgage, auto, and personal loans are relatively easy to get with a 687 Credit Score. Lenders like to do business with borrowers that have Good credit because it’s less risky.

How is your payment history calculated?

Your payment history accounts for 35\% of your score. This shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills, and how recently payments have been missed.

How much does your credit score weigh your payment history?

As you can see, the average credit score calculation weighs your payment history at around a whopping 35\% of your score, even more than how much money you already owe. That’s because your credit score is meant to demonstrate that you can make payments regularly, not necessarily that you have too much debt.

What percentage of a FICO score is credit history?

Credit payment history determines 35\% of a FICO Score. The first thing any lender wants to know is something about your credit history.

How is your credit score calculated?

To calculate that score, FICO considers five factors: How you’ve handled credit (otherwise known as your payment history). Credit utilization. How long you’ve had credit.

How does your payment history affect your credit score?

Your credit history is an indicator of how likely you are to repay your debts, so it makes sense that your payment history is the most important factor in your credit score. Exactly how payment history is reported and how it affects you, however, can vary based on the type of loan and the credit scoring model that’s being used.