11-05-2012 02:58 AM
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?
11-05-2012 08:22 AM
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.
11-05-2012 05:33 PM - edited 11-05-2012 05:35 PM
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.
11-05-2012 06:07 PM
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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.