You are busy. Sometimes you forget to make your payments on time and you get hit with a late fee. You may even have to pay a higher interest rate due to your late payment. If you want to boost your credit score an easy way to do so is start paying all your bills on time.
Since over 1/3rd of your credit score comes from your payment history it is critical that you make all your monthly payments on time.
You can setup an automatic bill payment through your bank or with each creditor. This way you can ensure that all your creditors will be paid on time and will report your good payment history to the three major credit bureaus – Experian, Transunion and Equifax.
Late payments ruin your credit score and they can cause your creditors to view you as a higher risk customer and they may increase your credit card APR from a manageable one to a much higher 20% or even 30% APR which you cannot afford to keep up with.
Before you forget and life calls setup an automatic payment or a payment reminder so that you can start paying all your bills on time and start slowing increasing your credit score.
It only takes a few late payments to lower your credit score by 50 to 100 points or more but it takes many months of on time payments to build your FICO score back up.
Start now and you can see positive results in the months to come.