Credit Scores Can be Confusing. Here's a Simple Recipe for Managing Yours
Elaina Johannessen, a program director with Lutheran Social Service of Minnesota Financial Counseling, offered her expertise on raising and maintaining credit scores.
Both FICO and VantageScore, the two major credit scoring companies, put the most importance on timely payments. A payment that is 30 or more days late can damage your score immediately, causing it to drop by as much as 100 points. You may also be socked with a late fee by your lender or credit card issuer.
Simple tactics can help you pay on time and avoid credit score damage. Set up automatic payments on your bills. Or, if you’re not a fan of automatic payments or you’re worried about overdrawing your account, set a reminder to pay, says Johannessen.
Setting a reminder several days before your due date gives you time to transfer funds to your creditors.