Did you know that you can significantly improve your credit score if you make your credit repayments on time? Although a person’s payment history can have a few confusing elements, if you never miss a payment your credit score should be consistently higher than average.


Here are a few elements that determine your payment history

  1. It will look at whether you have any adverse actions on any of your credit accounts, such as defaults, judgements, bankruptcies etc.
  2. It will look at your payment information on your different types of credit accounts. An example of this may be that you have a very positive payment history when it comes to your loans and credit cards, but you may have some missed payments on a retail account.
  3. It will look at how overdue any of your late payments are.
  4. It will look at how much you have outstanding on any of your credit accounts.
  5. It will calculate the total number of late items that are listed on your credit report.
  6. It will also look at your positive payment history and how many accounts you are paying as arranged.

As you can see, there are quite a lot of factors that determine your payment history and payment behaviour. However, the simplest way to ensure that you have a good payment history is to keep track of your different credit accounts, your repayment dates for each of these accounts and how much you need to be repaying on each of these dates.

How to build a solid credit history

  • Don’t apply for too much credit. You need to be picky with your credit applications and make sure that you take care of your existing accounts. Pay your accounts on time and have reasonable credit card balances.
  • To start building credit, you should try stay away from credit cards that come with a whole lot of charges. There are good cards with minimal fees and they are great ways for you to start building your credit history. Why not apply for a Virgin Money credit card here.
  • Make sure that you use the credit. Some credit scoring tools cannot produce a credit score if it’s been a while since your credit reporters have given information to the bureaus. You should look to making small monthly purchases, but then make sure that you pay this off right away. It will take some time for your credit history to build, but if you make these small, regular purchases you will begin to see the results.
  • Be on time with your credit card payments. One of the best ways of creating and maintaining a good credit history is to ensure that you make your credit card payments on time. With a Virgin Money credit card, you can set an automatic payment for an amount that you select. This will help to make sure that you’re not accidentally missing a payment.