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Credit Report & Credit Score; Credit Repair, Debt Management > Credit Score > Having a Low Credit Score Even Though You Are Paying Monthly in Full

Having a Low Credit Score Even Though You Are Paying Monthly in Full

By Ruth Racey
Published: Saturday, March 20th, 2010

It is true that one of the main determinants of your credit score is your payment history. In this case, your payment history actually refers to the records on how you have paid your bills and your dues in the past years.

Naturally, having a good payment history is known to have caused credit consumers to get highs cores. In this case, what does a good payment history mean? When you hear the term good payment history, it only means that you are not accumulating a huge amount of debt, that you are faithfully paying your bills on time, and that you are paying your monthly dues in full. Whenever you have done all of these, it is known that a higher credit score actually awaits you.

This is the reason why there are a lot of people who are expecting a higher credit score whenever they have been paying their monthly dues in full. However, the sad fact is, there are still a lot of consumers who are not having an improvement in their respective credit scores even though they may have paid their monthly dues in full. Well, here are some of the reasons that helps you understand why paying your monthly dues in full may not guarantee a higher credit score:

  • The 30% rule
    What is the 30% rule all about? Basically, it is a rule wherein you may actually pay for all of your bills at the end of the month without hurting your credit scores as long as all of your bills have not yet reached beyond 30% of your credit limit. In this case, whenever you have your bills always below 30% of your credit limit, and have paid it in full at the end of the month, you will surely have a better credit score. However, when you have bills racking up beyond 30% of your credit limit, even though you may have paid it at the end of the month in full, you may still have your credit score hurt.
  • Spending over your credit limit
    In addition, remember that a credit limit is actually there for a purpose. In this case, whenever you have spent over your credit limit, even though you may have paid for it in full at the end of the month, you will surely have lower scores as an end result. In this case, be sure not to spend over your credit limit.

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