WID Financial Llama: Third Most Important Factor in Your Credit Score

>> WID Financial Llama: Third Most Important Factor 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 talking about the third element that goes into your credit score: the length of credit history and it’s about 15% of your score.

>> It looks at the average age of all your open credit accounts.

Close-up view of a beautiful golden retriever sitting next to the llama’s desk.

>> Correct me if I’m wrong llama, but on the surface at least it doesn’t seem like there’s much you can do about that.

Cut back to the llama.

>> You know that’s a really good point it does take time to build a credit history and you know what they say about time. Time takes time.

Ah, very wise.

>> But this does allow for some planning.  

If you have some open accounts that you don’t use and they don’t cost you anything you can sort of let them age and so as time goes on this element of your credit score will increase.

>> In addition, don’t eliminate any old cards maybe you have an old store card that’s 10, 15 years old you don’t use anymore, make sure you don’t cancel that card. Because it will negatively affect your average length of credit.

Join us on our next episode and we’ll tell you how you can even make your score higher.

>> Up next: fourth element in your credit score

Leave a Reply