Personal Business and Finance

I bet you must have heard some discussion about payment history at some point even if you don’t remember what was said about it. And what about credit use? Well, that one, even though it is self-explanatory, will be explained here - and of course, how these two credit matters affect your financial life.

You see, your payment history is a very significant factor on your file. Not just because it reflects how much you keep to prior agreements made with financial institutions, but also because a large chunk of percentage of your total score (around 35%) is allocated to this factor alone. What?! Did I hear you say? Well, that’s it folks. But really instead of pondering why this is so, which is not our business anyway, why don’t we find out what to do if we can trace that low score of yours to this area?

From the percentage allotted to pay history, we know that missing payments or being late will definitely attract the wrath of creditors and they’ll notify the bureaus of our indiscipline. Well, reporting agencies have no time for stories and they simply slap that negative info right on your file.

Next, if you got a revolving line of credit like those plastics cards you carry around in your wallet, you should know that it is not real money but only a guarantee that that’s how much risk the card-provider can take on you - and you should never abuse it by maxing-out or spending close to the limit. Such actions only help to deduct some points from the figure you’re trying to build.

The solution to these problems will be to start paying debts on time before the deadline approaches and to also reduce expenses on your card to about 20percent of the total given to you. These actions will help raise your score. But you should also make efforts to start a repair program using either a repair-agent or do-it-yourself so as to boost your score even higher.

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