Which entries on a credit report will decrease your credit score?

A. Late payments

B. Soft inquiries

C. Bill paid on time

D. Current address

Answer

The correct answer to your query is A. Late payments.

Explanation

Late payments are one of the most significant factors that can negatively impact your credit score. Credit scoring models, like FICO and VantageScore, consider payment history as a key component, accounting for about 35% of your score. When a payment is made more than 30 days late, it can be reported to the credit bureaus and remain on your credit report for up to seven years, which can lower your credit score considerably.

In contrast, the other options do not have a negative impact on your credit score:

B. Soft inquiries: These do not affect your credit score. Soft inquiries occur when you check your own credit or when a company checks your credit for promotional purposes.

C. Bill paid on time: Paying bills on time contributes positively to your credit score and is reflected in your payment history.

D. Current address: Your address does not influence your credit score; it is simply a piece of identifying information in your credit report.

Therefore, late payments are the only entries among the options that would decrease your credit score.