While it may seem clear on how to improve your payment history, here are a few more suggestions than just making monthly payments:
Be timely with your payment
Yes, it’s obvious, but what may not be is why you don’t pay your bills timely. A mindful check-in might be necessary. Then, doing a list of your bills and their due date will be helpful. Put as many bills as you can on autopay. If you don’t have a budget, perhaps this is the time to start.
Catch up on missed payments
If you are struggling with making payments, pay your current bills first as the older debt counts less towards your FICO score. But, do your best to catch up on your payments.
Communication is key
If you can’t make your payments, talk to your lenders. Most are willing to help you. It could still affect your credit score, but it will get you breathing room. You may be able to lower your interest rate, stop interest altogether for a short period, lower your payment, or make a payment arrangement. The most important thing to do is to communicate your circumstances.
Try not to underpay
While it may be the best thing when money is tight, it can still affect you. Instead communicate with your lenders. Renegotiate the terms of your loan or mortgage for a lower monthly payment. Try to get a low interest loan to consolidate your bills.
Establish a financial routine
This could be setting two days aside out of the month to pay your bills or devoting more time and starting a new routine that will help take control of your finances.
Seek Help
If you are struggling with your finances. Get help. Finances have to do with your feelings, triggers, and financial literacy. You may need a little help at the beginning to build a strong foundation.
Mindful Reminder
Addressing the core of why you are missing payments starts with looking deeply into yourself. Is there anxiety around communicating with the lenders? Are you feeling ashamed or angry about your situation? Reflecting on what’s underneath first will help you address your finances from a clear and serene state of mind.
Seeking Help
If you are depressed, anxious, or have panic attacks, find a health professional who can help you.
Substance Abuse and Mental Health Services Administration (SAMHSA) National can provide free referrals. They are open 24/7, 365 days a year.
If you are experiencing suicidal thoughts, please contact 988 for help. The calls are free, confidential, and they are open 24/7 to help you navigate difficult emotions.
Attend a Workshop
If you are interested in attending a live webinar on improving your relationship with your finances, please visit my events.
Related Posts
Akin, J. (2021). How to improve your payment history. Retrieved from https://www.experian.com/blogs/ask-experian/how-to-improve-payment-history/
MyFICO. (n.d). Payment history. Retrieved from https://www.myfico.com/credit-education/credit-scores/payment-history
Treece, K, Tarver, J . (2022). Focus on payment history-it’s the most important credit factor. Retrieved from https://www.forbes.com/advisor/credit-score/payment-history/
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