This is the second post in a blog series how your lender will evaluate your credit score analysis. You can read Part 1 here.
How Does Your Payment History Affect Your Credit Score Analysis?
This is one of the most important factors that a potential lender will look at when determining if they will grant you credit. A lender wants to be assured that they are going to be paid back, making your track record for making your payments on-time an important factor. If you have an erratic history of making payments, this will negatively impact your credit score, and a lender will hesitate when considering you for a loan. But this can also depend on other factors, such as how long ago those erratic and missed payments happened and what your payment history is like in the present.
Factors like missed or late payments, defaults on mortgages, or bankruptcy will all be considered a red flag for potential lenders when they evaluate your credit score analysis. This also includes any accounts in default that have been passed to a collection agency. A few mishaps on your credit report, if other areas are up to par, won't entirely block you from being approved for credit. However, it can limit the amount that a lender will grant you and your interest rate can be higher as a result.
Read Part 3 in this blog series on what a lender looks for in your credit score analysis.
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