Payment History 35% - 175 points
Collections - How many times has a creditor, that you owed money to, looked to an outside 3rd party collection firm to help them collect the amount you owe. This could include the use of collection services or lawyers. Each time a collection company shows up on your credit report your score goes down a bit more.If you receive notice from a collection company make sure you resolve the issue, and keep the documentation before the 30 day window passes to prevent collection items from lowering your scores. If you already have a collection account showing up on your credit report understand that just paying it off will NOT make it go away. It will remain for 7 years even if you pay it off. Most times if, before you pay the bill, you contact the collection firm and tell them that you will pay off the balance if they agree in writing to remove the items from your credit report odds are they will do just that to get the payment!
Late Payments - How many times in the past several years have you paid a bill 30, 60, 90 or 120 days late. This issue here is not about the amount of the bill as much as it is that it was paid late. While paying any bill late can hurt your credit scores, as you might expect, paying any bill 90 or more days late does the most damage. Most creditors will presume once you have passed the 90-day point even a single time that you are much more likely to do it again and the negative impact on your scores is huge.
Public Records- How many times has a creditor looked to the courts to help them collect a debt. This would also include liens filed by local, state or federal government to collect taxes or fees that are owed. Tax liens can have a serious impact on your credit scores for years to the point that even after the lien has been paid or released your credit score is still damaged.
Charge Offs - This occurs when someone that you owe money to gives up on trying to collect the amount you owe or the creditor settles with you for an amount less than the total balance. This indicates to creditors that you did not fulfill your contractual obligation and continues to hurt your credit score for up to Seven years.