Consistent payments improve credit score

Some people think that if they pay off all their debts, then their credit score will magically shoot up and give them great credit.

Nope. Your credit score is the sum total of your past credit use, your past credit history, not current payments.

Sure, the fact that you PAY your bills is important. But TIMELY PAYMENTS each and every month are truly the biggie here. It's wise to use a bill-paying calendar -- any calendar will do -- and write in when your debts are due one full week before they are due.

This way, if you are a day or two delinquent in paying them according to your calendar, your payment arrives on time.

When it comes to credit card payments, there's no need to even mail payments anymore. Online bill payment systems actually can post your payment the same day you make it, so long as you do it early in the day.

I personally enter in my credit card payment due date into my cell phone's calendar function. The phone beeps, I look at the message, it says "Pay CC today," and I make time to log in to my credit company's website, authorize the correct payment due, and click "OK Payment." It's done in 5 minutes, and my payments have never been late due to slow mail delivery.

In fact, I usually make the next month's payment a few days AFTER my regular payment is due. So, if my credit card payment is due on the 5th of the month, I will log onto my online account on the 7th of the month, make the next month's minimum payment, and know that I can make another payment before the following month by the 5th to help pay down credit card debt. This way, I know I'm not late, and I can pay down credit card balances as my income allows.

If late payments have indeed damaged your credit score, you will need to make months of on-time payments consistently to repair the damage. Consistent payments each month by their due dates is what will improve your credit score, not one-time payments in full.