How Not to Ruin Your Credit Score

Raise your hand if you know what FICO stands for…

The Fine Isaac Corporation provides software to lenders for analyzing consumer credit, and there are a number of factors that determine your ranking in the hierarchy. How much you make, how much debt you have, number of credit cards, your Candy Crush high score – maybe not the last one, but did you know that one of the most impactful things on your credit score is how timely mortgage payments are?

It makes sense that you would take a hit when paying late, but the severity of the pounding your credit score takes once a payment is overdue may seem a tad disproportionate, especially if you happen to find yourself on the belated end of the stick.

Overall, according to an article from, a person’s payment history makes up 35% of the overall FICO score. Depending on how high your scores were to begin with, one payment that is 30 days late was found to drop scores between 60 and 110 points… Ouch. To make matters worse, the amount of time it takes one’s credit score to recover is excruciatingly slow – 9 months to 3 years slow. The recommendation from one credit bureau , according to the article, if you have missed a payment… don’t miss the next one. Thanks Experian for the tip.

The Effect of Late Mortgage Payments on Credit Scores

Posted on October 10, 2014 at 6:36 pm
Laura Polt | Category: Blog | Tagged

Leave a Reply

Your email address will not be published. Required fields are marked *