For real, pay your bills on time…

What is the most important reason to pay your bills on time? It’s not to avoid late fees and penalties, and it’s not to avoid having a mailbox full of “past due” notices.

It’s all about your credit score.  

Let’s take a look at what makes your payment history so important and why your financial future may depend on it!

Your payment history has the greatest weight compared to the other factors in your credit score. Accounting for 35% of your total credit score, it’s not something to ignore or neglect. That’s over a third of your financial health!

Because of its heavy influence on your score, your payment history can really drag your number down if you start missing payments. According to FICO data – missing a payment by just a month can lower your score by an average of 56 points. Missing a payment by 90 days can lower your score by an average of 104 points! YIKES.

Getting your bills current and staying consistent with on-time payments is an effective strategy to start building your score. It may sound simple, but the procrastinators and forgetful folks of the world may disagree with you. Be sure to check out Investopedia’s tips to avoid late payments if you need some ideas on staying on time.

You can always let us pay your bills for you! Online Bill Pay is just one of the many eServices available to all PCU members. Utilize this great tool to ensure every bill is paid and paid on time! It’s convenient, fast, secure, and FREE for all PCU members!

Your payment history is the biggest factor in your credit score – it’s not the only one! Schedule an appointment with one of our branch partners today to review your credit report with you. This is a great opportunity to learn how to address any other factors that may be negatively influencing your credit score. Plus, we’ll check to make sure you are getting the best rates available on any loans you may have as well as explore other opportunities to save you money!