If you make additional payments on your credit cards, school loans, car loans, mortgage, or any other credit account you have, you will eventually increase your credit score. The credit bureaus notice when credit accounts are paid back in a reasonable amount of time. Doubling the minimum payment is a good way to pay off a loan faster and increase your credit score quickly. You may also choose to make two payments per month on your credit accounts. Making payments at different times of the month could work better with your budget, and will help to increase your credit score by increasing the available balances on your revolving credit.
If you are late with your credit card payments and you fail to get back on track with your due date, you can decrease your credit score. Payments are considered delinquent when they are 30 days or more past due. Your credit report takes into account every 30, 60, 90, and 120 days (or more) that payments have been late. Foreclosures, repossessions, and wage garnishment may occur with failure to make payments as well as a subsequent decrease in your credit score. Check with your creditors to ensure that you do not have any past due payments still in arrears. You may be making payments on time now, but you have to ensure that all payments have been brought current.
If you only make minimum payments on your credit cards, personal loans or other credit lines, your credit score will most likely remain unchanged. Depending on the balances you carry, and whether or not you have excess credit, your credit score will most likely not change if you only make minimum payments. Many credit card companies now include schedules in their billing that demonstrate the difference between paying the minimum and making slightly higher payments. Sometimes paying the minimum on a credit line can make payments take 15, 20 or even 25 years to pay off.
Making payments on an item, good or service, does not always affect your credit scores. If you do not have an official credit line, personal loan, mortgage, car loan or any other financial agreement reported to the three national credit bureaus, then you are not establishing credit. Store layaway plans, school tuition payment plans and agreements made with medical providers are examples of payments that will not affect your credit scores.