In detail
Payment history refers to the documented pattern of whether a consumer has paid their credit accounts according to the terms of the agreement. This information is reported by lenders, creditors, and other data furnishers to the national credit reporting companies, which include Equifax, Experian, and TransUnion. Each account may show a status for every month, such as paid as agreed, 30 days late, 60 days late, 90 days late, or charged off. The Fair Credit Reporting Act (FCRA) governs how this information is collected, reported, and disputed. Negative payment information, such as late payments, generally remains on a credit report for seven years from the date of the delinquency, while most positive information can remain indefinitely. Payment history is one category of information that credit scoring models may evaluate when calculating a credit score. Different scoring models, such as those developed by FICO or VantageScore, may weigh payment history differently, but it is commonly considered a significant factor. A single late payment may have a different impact depending on the consumer's overall credit profile, the recency of the late payment, and the scoring model used. Credit reports also include other types of information, such as amounts owed, length of credit history, new credit, and credit mix. Consumers have the right to obtain their credit reports and dispute inaccuracies under federal law.