When it comes to debt payments, it’s pretty cut and dry: Late payments are bad and can cause a 518 credit score. On-time payments are good and can pave the way to your financial goals.
Stacey C. came to CredEvolv with some past issues and plenty of future potential. She quickly realized that the former weren’t insurmountable, and the latter could be realized with a little legwork and discipline.
With a 518 credit score, Stacey C. needed help to reach her lender’s minimum score of 620 to qualify for a home loan. We connected her with a HUD-approved, nonprofit credit counselor, who successfully removed 7 late payments from her credit report while helping her create a budget to ensure on-time payments on all her accounts. Ten months later, her score rose to 604, and she continues to work toward becoming mortgage-ready and reaching her personal goal of 640.
Why are on-time payments so important?
Your payment history is the single biggest factor in determining your credit score, accounting for about 35% of it. That’s why making on-time payments is non-negotiable if you want to improve your 518 credit score.
- Set reminders for yourself. Use calendar alerts, apps, or automatic payments to ensure you never miss a due date.
- Adopt the mindset that a little is better than nothing. If you’re unable to pay your full balance, at least make the minimum payment. This protects your credit score and helps you avoid late fees. Missing a payment should not be an option.
- Know your due dates. If multiple payments feel overwhelming, contact your lenders to align due dates closer together.
Consistency is key. Every on-time payment builds a positive credit history. Over time, your effort can significantly lift your 518 credit score.
What can and can’t be removed from my credit report?
As we’ve covered in a previous Credit Education blog, understanding what can and cannot come off your credit report is essential. The reality is that boosting a 518 credit score isn’t about erasing your financial history. It’s about ensuring your report is accurate and making smart decisions to improve your credit moving forward.
Misinformation about credit repair is everywhere. Some companies falsely promise they can eliminate all negative marks from your credit report. That’s simply not the case. In fact, removing accurate, negative information is against the law.
Under the Fair Credit Reporting Act (FCRA), credit bureaus have the obligation to report truthful, verifiable data. For example, if you’ve missed payments or defaulted on a loan, that record can legally remain on your report for up to seven years. Bankruptcies may stay on your file for as long as 10 years.
At CredEvolv, we believe in transparency. You should know that no one has the legal ability to remove valid negative entries from your credit report. However, the certified, nonprofit credit counselors available through our platform can assist in disputing inaccuracies or outdated details that could be unfairly causing your 518 credit score.
Our counselor partners have the expertise to identify errors and questionable reporting practices and help you remove any information that shouldn’t be there. This gives you the best opportunity to strengthen your 518 credit score and make progress toward a higher score goal like Stacey did!
Read more credit success stories here!