It’s important for individuals to be knowledgeable about their scores and the factors that go into calculating them. If there is a problem with one aspect of a borrower's profile, his or her entire score decreases. As a result, the person’s chance of borrowing money at a favorable interest rates goes down.
One important factor in calculating any of the three scores is the person’s record of making on-time payments. The types of bills that are calculated into the score vary. Depending on an individual’s circumstances and borrowing history, they might include credit card payments and student loan payments. Failing to make an on-time payment to any lender that reports to the three credit monitoring agencies can result in a decrease in one’s score. For this reason, it’s best to make payments on time whenever possible, and to monitor one’s score carefully to identify and resolve problems stemming from late payments.