Understanding FICO® Scoring

[dr_stan3]

I was wondering if the number of on-time payments matter when calculating credit score. I understand that the percentage of on-time payments matters a lot, but does the quantity matter as well? For example, do three on-time payments out of three statement balances impact a credit score just as much as 500/500?

If quantity does matter, then I would like to know whether it counts as an on-time payment when I pay off a card before a statement balance, and it reports as $0. Even though the statement balance is $0, does that add onto my on-time payments or is it only statements with positive balances that get added to total on-time payments?

[Shogun]

I don't think the amount of payments, say 77 on time vs 100 on time payments really factors in that much.  What really matters is the fact that they were on time and the TLs are positive.  Yes, an account paid to $0 counts as a positive.  Basically anything not late counts as a positive.  Remember though, one 30 day recent late will have a big impact.  It will diminish over time.  The best way to ensure your scores is to pay on time. 

[GregB]

I think you are looking at this from the wrong "side". Every month all of your accounts update with a status of paid on time, 30-days late, etc. Account balance, even $0, doesn't matter. The majority of people have no late payments on their reports. You aren't so-much credited for on-time payments as you are dinged for any late payments.

On-time payments are expected. ANY late is a big deal. Bigger lates are bigger deals. You don't get credit for on-time payments so much as your accounts get older which helps length of credit, AAoA, etc.

More simply, you don't need to count your on-time payments as they are expected. You don't need to count your lates either because you aren't going to have any.

Don't ever, ever, ever be late - ever.

[llecs]

I'll add that "percentage of on-time payments" is found within sone FAKO-based services like CreditKarma. If that's your source, then ignore the scores and advice. FICO doesn't score that way.

[RobertEG]

+1

Where the presence of timely payments enters into FICO scoring is by way of age of the account.  It gets older, and thus improves length of credit history.