“`html

Boost Your Credit Score with O1ne Mortgage

Your payment history is the cornerstone of your credit score. At O1ne Mortgage, we understand the importance of maintaining a pristine payment history to improve your credit standing. In this comprehensive guide, we’ll explore how payment history affects your credit score, which bills count toward it, and actionable steps to improve it. For personalized mortgage services, call us at 213-732-3074.

How Payment History Affects Your Credit Score

Payment history is the single most significant factor in calculating your FICO® Score, accounting for about 35% of your score. Establishing and maintaining a spotless record of on-time debt payments is crucial for a strong credit score. Late or missed payments can significantly harm your credit score, especially if they are 30 days overdue. These late payments can remain on your credit report for seven years, although their impact diminishes over time.

Which Bills Count Toward Your Payment History?

The types of accounts considered for credit payment history include:

• Credit Cards: Paying your minimum monthly payment before the due date is essential. Making payments greater than the minimum can help save on interest charges and boost your credit score.
• Other Revolving Credit Accounts: Personal lines of credit, home equity lines of credit (HELOCs), and other accounts that let you borrow against a set credit limit.
• Installment Loans: Payments on mortgages, student loans, and auto loans are tracked. Once paid off, these loans are noted as closed in good standing on your credit report.
• In-Store Financing: Payments on items bought on a payment plan from merchants like furniture or electronics stores may also be reported to credit bureaus.

Non-Debt Payments (Usually) Don’t Affect Payment History

Payments for expenses unrelated to borrowing money, such as rent, utility, and cellphone bills, don’t automatically influence your credit standing. However, they can affect your credit scores if reported to credit bureaus. Enrolling in services like Experian Boost® can incorporate your history of utility, cellphone, and streaming service payments into your credit report, potentially increasing your FICO® Scores.

5 Ways to Improve Your Payment History

Here are five tactics to help you maintain a solid payment history or start rehabbing a spotty one:

1. Pay on Time: The key to a solid payment history is paying your bills on time, every month, without fail.
2. Dispute Misreported Payments: If your credit reports mistakenly list on-time payments as missed or late, contact your lender or go through the credit report dispute process.
3. Avoid Underpayment: Late payments are the biggest potential blemish, but underpayments can also mar your credit history. Focus on paying down your balances if you have trouble making full payments.
4. Establish a Bill-Paying Routine: Scheduling a regular day for all your bill payments can be helpful. Pick a time and day that works for you and put it on your calendar.
5. Let Technology Help: Use automated electronic bill payments (autopay), digital calendar reminders, and alert features in credit card issuers’ apps to avoid late payments.

Benefits of Paying Your Bills on Time

Getting in the habit of paying your bills on time can pay off in numerous ways:

• Improve Your Credit Scores: Making all your debt payments on time helps build good credit, giving you access to a wider array of loans and credit cards with better terms.
• Avoid Penalties: Loan contracts and cardholder agreements typically spell out fees or penalties for missed payments. Avoid these costs by making timely payments.
• Reduce Stress: A system for ensuring payments are made on time can reduce anxiety and make your life calmer and less stressful.

At O1ne Mortgage, we are committed to helping you achieve financial stability and improve your credit score. For expert mortgage services, call us at 213-732-3074. Our team is here to guide you every step of the way.

“`