Most Important Factor in Your Credit Score | WID Financial Llama

>> WID Financial Llama.

Number one most important element in your credit score.

The WID Financial Llama is on screen broadcasting from his elegant living room.

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

Today we’re going to talk about the secret most important first element in a credit score.

So, the number one secret element in a credit score…  Your payment history.

You know, paying all your bills on time every month.

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

>> Pay your bills on time, that’s the secret?

>> Cut back to the Llama.

>> Well, yes.

>> Cut back to the dog.

>> That — that’s it?

Anything else?

>> Cut back to the Llama.

>> Well indeed there is.

So when we say “on time” there are different ways you can be late, right?

You can be 30 days late.

You can be 60 days late.

You can be 90 days late.

The later you are the worse it is for your credit score. 

Also if you have something that’s gone to collections that’s a negative for your score as well; any charge-offs, bankruptcies, foreclosures that sort of thing.

Lawsuits as well.

All these elements go into your credit report, your payment history is 35% of your credit score.

So join us next time where we talk about the second most important element in your credit score.

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