payment history
The record of whether you have paid credit accounts on time — the single most important factor in credit score calculations at 35%.
Example
“One 30-day late payment in an otherwise perfect payment history dropped his score by 80 points.”
Memory Tip
35% OF YOUR SCORE — the most important factor. One late payment causes serious damage.
Why It Matters
Payment history is the foundation of your creditworthiness and directly affects your ability to borrow money at favorable interest rates. Lenders use this record to assess how reliable you are, which impacts everything from mortgage approval to the interest rate you pay on credit cards and loans.
Common Misconception
Many people believe that paying off a credit card balance in full each month will automatically give them a perfect payment history. However, what matters is making at least the minimum payment by the due date every single month, regardless of whether you pay the full balance or not.
In Practice
If you miss a payment on your credit card due on March 15th and do not pay until March 25th, this late payment will be reported to credit bureaus and can lower your credit score by 50 to 100 points depending on your current score. That single 10-day late payment can remain on your report for seven years, making it harder to qualify for better interest rates on future loans.
Etymology
From Old French 'payer' meaning to pay plus Greek 'historia' meaning record.
Common Misspellings
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Related Terms
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