WID Financial Llama: Intro to Credit Scores & Reports

>> WID Financial Llama.

Intro to credit scores and reports.

WID Financial Llama wearing a cotton face mask sitting at a white table in an elegant room.

Behind him are a fireplace and brook shelves full of books, art and flowers.

>>  Hello, friends, and welcome to another episode of me, the WID Financial Llama.

Everyone here at WID is hoping you stay safe during these difficult times and remember always wear a mask to keep yourself and others safe.

We thought this would be a great time to learn a bit more about credit.

You know, your credit history.

Your credit score.

Generally the importance of credit, I mean, what would be more fun than that?

>> Close up view of a beautiful Golden Retriever sitting next to the Llama’s desk.

>> I can’t think of anything more fun, Llama.

>> Cut back to the Llama.

>> Me either, that’s probably why we get along.

The first thing we want to talk abour is, what’s a credit score.

You know banks, financial institutions, landlords, loan companies all want to know what your credit score is to determine whether or not to extend credit to you.

It’s a system designed to tell creditors, you know, people and institutions that might loan you money, how likely it is you’ll repay the loan in full and more importantly on time.

Your credit score is based on your credit report.

And while there’s a couple of ways to calculate your score, they’re basically between 300 and 850.

With anything over 700 being a pretty good score.

So, how important is credit?

Your credit can really make a difference in the choices available to you.

It can make a difference between getting and not getting a loan.

Maybe a home loan, maybe a car loan, and it can also make a big difference in the cost of that loan, are you paying 10% interest or 6% interest?

More and more we’re seeing that landlords, if you want an apartment you need a good credit score.

Mobile phones, sometimes even getting a job people will look at your credit score.

So it’s really important to pay attention to.

If your score is lower, don’t despair, there are ways to increase your score without magically or systemically having more money.

So, over the next several videos we’re going to show you how to request your credit report for free.

Review your report.

Fix any errors on your report.

Then the five elements in your credit score so you can maximize them going forward.

>> Cut back to the dog.

>> That does sound good.

>> Cut back to the Llama.

>> So glad you agree.

So, ready to get started, check out our next video and see how you can get free weekly credit reports through April of 2021.

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