Payment history is the single most important factor in credit scores, making up about 35% of most scoring models. Late or missed payments can have a dramatic impact, with a single missed payment potentially dropping a score by 50–100 points. On top of that, issuers charge late fees—often $25–$40—and may apply penalty APRs exceeding 29%. These consequences compound quickly, making consistent on-time payments critical.

Fortunately, payment history is also an area where consumers have control. Setting up autopay or reminders can ensure you never miss a due date. Many issuers also allow one-time forgiveness if you have a strong track record of on-time payments. Still, repeated late payments will stay on your credit report for up to seven years. Protecting your payment history is one of the simplest and most effective strategies for maintaining strong credit health.