Your credit score represents your financial health. If you have never used credit before, it will take a minimum of three to six months to build a scorable credit history. Your payment behaviour plays an important role in building a good credit history. Payment history contributes up to 40% of the overall rating. Here is what goes into it:
- The number of repayments you have always paid on time
- How many days past due (DPD) you are on delinquent accounts
- Legal action taken on delinquent accounts
- The number of accounts for which you are currently at least 30 days delayed on payment
- Your payment history comprises many complex components. But experts say that ultimately, it boils down to never missing a payment.