>> WID Financial Llama: Fifth Factor In Your Credit 

Score And Tying It All Together

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 fifth and last element of your credit score and then we’re going to do a bit of review.

>> The last element is the types of credit that you have access to through your open accounts. So do you have credit cards, mortgages, car loans. Things like that. If you don’t have all 

of those don’t worry about it it’s not worth going out and buying a car to make sure you have a car loan on your report.

But these are some of the different types of credit that agencies look at when they’re putting together your credit score. If you have one or two, you’re just 

fine. So in summary a couple of things to think about as you go forward keep credit card balances below 15 or 25 percent to make sure your credit utilization rate is in the best place it can be for your credit score.

>> Pay your accounts on time and if you have to be late be no later than 30 days.

Don’t open lots of counts all at once or even within 12 months of each other. If you’re going to make a big purchase, check your credit report six months in advance so you can iron out any issues and correct the things you need to have corrected.

>> And remember if you have a bad credit score or flaws in your credit history, don’t worry just make the corrections and those things will age right off your account in time.

The llama holds a Bop-It Extreme toy in his arms. The toy has five inputs including a pressable button,a pull handle a twisting crank a spinnable wheel and a flickable switch.

>> If this seems like a lot well sometimes it is it’s kind of like playing Bop-It and trying to keep track of five things at once.  

The llama plays Bop-It Extreme attempting to press buttons using his mouth. Each button or action has a different credit tip instead of the game’s usual

>> Utilize it. Pay on time. Slow down. Keep old accounts. Plan ahead. 

But you know if you look at our videos and you follow the suggestions, we think you’ll reach a whole new high score

>> WID Financial Llama: Fourth 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.

>> The fourth element in your credit score is new credit, so this probably makes sense to everyone.

If you were to go out and all of a sudden open a couple of new credit cards maybe within a few  days of each other, a credit reporting agency would think “Hmm…I’m wondering  if they’re having financial trouble,” that could negatively affect your score.

>> New credit tip: don’t open multiple new credit accounts within a short period of time like a few days or weeks, instead wait six months before applying for another account when possible.

Just by knowing a few rules, we can make plans and make sure we avoid these pitfalls when it comes to your credit score.

>> So join us in our next episode where we’ll talk about the fifth and last element to your credit score and give you a few tips to take along your road to building better credit and credit scores.

>> 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

>> WID Financial Llama: Second 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 we’ve been talking about the different elements that go into your credit score and today we’re going to talk about the second most important factor: your credit utilization rate.

Basically the amounts you owe on open credit accounts.

>> Your credit utilization score measures the amount of debt you have compared to your available credit.

So let me give you an example… let’s say you have $10,000 in available credit from a credit card, $1000 would be a 10 percent utilization rate, $9,000 would be a 90 percent utilization rate.

>> Credit reporting agencies look at this number to see how financially stressed you are and it affects your score.

Keeping your credit utilization rate somewhere between 15 and 25 percent is optimal for your credit score.

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

So between payment history being 35 percent and your credit utilization rate being about 30 percent, that’s like 65 percent of your score.

>> Cut back to the llama.

Exactly these are the big two things to really pay attention to.

>> 65 percent of your score right there, between paying your bills on time and making sure you don’t carry too much debt.

So join us in our next episode and we’ll talk about the third most important element in your credit score.

>> 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.

>> WID Financial Llama, how to fix credit report errors.

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.

In our last episode we talked about how to review your free weekly credit reports from annualcreditreport.com, and how to write down anything you wanted to dispute or something you had questions about.

Today we’re going to talk about how to fix any errors in that report.

So, how do you dispute errors on your credit report?

Our good friends at CFPB have a great little tool for that and you’ll never guess what it’s called.

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

>> I suppose I would guess it would be called Disputing Errors on Your Credit Report Tool?

>> Cut back to the Llama.

>> Indeed it is.

>> CFPB Disputing Errors on Your Credit Report Tool.

Https://buff.ly/2IRDPMU.

>> This tool takes you step by step to dispute an error on your credit report with a credit reporting agency’s tool, the people who furnish the information to the credit reporting agencies in the first place.

Did you know you can dispute by phone, by mail or even online.

First thing you want to do is identify the issue.

Bring up one issue at a time.

Gather any supporting evidence that you need to make your case to show that the account is or is not yours.

Make sure you explain each error separately, just stick to the facts and request that it is removed or corrected.

It’s also always best to follow up in writing.

This link will bring you to a model letter provided by CFPD.

>> CFPB Disputing Errors on your Credit Report Tool.

Https://buff.ly/2IRDPMU.

>> Also there will be more information at that link if you want to dive deeper into this ever-interesting area.

Okay, now that we know how to get your free weekly credit report.

Review that credit report and dispute any errors on that credit report, join us in our next series of videos to talk about how you can maximize the five elements that go into your credit score.

>> WID Financial Llama.

How to review your credit report.

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

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

Last time we got together we showed you how to get free credit reports from annualcreditreport.com.

So today let’s talk about reviewing those reports.

I want to show you this great tool from our dear friends over at the Consumer Financial Protection Bureau.

This link will bring you to a tool that helps you understand and review your credit report.

>> CFPB Your Money, Your Goals Review Credit Report Tool.

Https://buff.ly/3qYKKF8.

>> You might be surprised to know that lots of credit reports have lots of errors.

Be sure to check each of your credit reports against this CFPB check list.

Make sure all the information is correct.

Did you know, for example, that I looked at my report report and there was information on there from someone else named llama.

You know how I know it was different?

There was only one “L.”

Also make sure that everything on the report is accurate.

Your information including your name, your address, any other contact information, public records so that would be bankruptcies or liens, collection agency info, credit information, make sure all the accounts are yours.

We worked with someone not long ago who found on their credit report their ex-wife’s bankruptcy from five years after they got divorced.

Certainly that shouldn’t have been on his report.

Make sure you recognize all the inquiries, write down any questions you have about anything on the report and most importantly write down anything that you know is incorrect and that you want to dispute.

So, how do you fix your credit report?

Join us in our next video and we’ll show you how.

>> WID Financial Llama.

How to get free weekly credit reports.

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 show you how, through April of 2021, you can get free credit reports weekly from the three big credit reporting agencies.

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

>> Wait, did you say “free weekly credit reports”?

>> Cut back to the Llama.

>> Yes.

Free, isn’t that terrific?

Due to the COVID-19 pandemic free credit reports from the three agencies are being offered through April of 2021.

At this link.

>> Link: annualcreditreport.com.

Cut back to the dog.

>> But, all right, how complicated is it?

>>  Cut back to the Llama.

>> You know, not complicated at all.

There are just three steps.

So you click on that link, and you fill out a form, because we know all good things start with filling out forms.

You fill out the form to receive one, two or three reports from each of the credit reporting agencies.

You can request your reports from Transunion, Equifax and Experian.

You can request and review your reports online as well.

Before you get your credit reports you’ll answer a few more questions.

You might even need some of your financial records to answer them.

They want to make sure that no one but you gets your credit information.

>> Cut back to the dog.

>> So did you get your free credit report, Llama?

>> Cut back to the Llama.

>> Well, no.

I mean eventually, yes, but I sort of forgot some of my information when I was online.

And so I had to do it through the mail.

That’s why everyone should really be sure that they have all their information at their disposal.

Perhaps your last mortgage payment.

The company that loaned you money to buy a car.

The credit card you used most recently.

Things like that.

So everyone, review those reports and when we come back next week we’re going to talk about a tool to help you read your credit report.

>> 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.