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Part 1 – Credit Scores Broken Down – Payment History – Credit Absolute, How Credit Scores Work

Payment History – How Credit Scores Work

Video Transcript Below:

What’s up everyone is Derek Vogel with Credit Absolute. So this is going to be the first part of the credit knowledge and information I’m going to share with you on how the credit scores are broken down.

So the number one component of our credit score that has the biggest impact is payment history. Okay so let me show you this chart here. Alright, so what we’re looking at here is thirty-five percent, thirty percent, fifteen, ten, ten. Okay and as I told you our total score is based on five hundred fifty points. Alright, so when we break down thirty-five percent into five fifty you can then see what the total value of points is that impact our score. So payment history is 192.5. Credit cards are 165. Age of credit is 82.5. You got the proper mix of credit which is 55 points and then new credit line inquiries is 55 points which add up to the 550.

Let’s first talk about payment history I’m gonna go ahead and put this board down but a payment history alone is one of the key factors in our credibility on how we are credible and/or irresponsible enough to pay our bills on time. Now, one 30-day late payment can actually impact your score over 100 points. Okay, because it’s worth 192.5 and so whatever you do and whatever situation that you get in no matter what if you can at all possible always make the minimum payment. Okay, it’s critical because if you get a 30-day late it’s going to impact the scores dramatically and, more importantly, it takes nine months to recover from one thirty day late payment and these are on credit card accounts.

Now if it’s a mortgage late there is a little bit of longer recovery time. They say one 30-day late can take up to two years to completely recover from. Okay and then if you get multiple lates you’re talking, you know, three to five Years. Okay and then if it goes 90 days pretty much what happens is you go into what’s called T key derogatory and it takes seven years to recover from that. So it’s almost like a charge off for collection which is brutal.

Now you could have heard in the past you know just make your payments on time and your scores will be fine. Well your scores could be fine but I just want to share with you making your payments on time is not everything that you can do to have perfect credit and what I mean by that is I see quite a few of my clients that come to me that have perfect payment history, have never missed a payment and they have a low credit score like in the low 600s. Okay, the reason why is because the other 65% of the score that we talked about makes up the total 550 and it’s extremely important that that is managed properly.

All right so you can have perfect payment history again but if you have high balances, if you don’t have the proper mix of credit, if you have a young credit history, all of those things are going to factor into what I think is really cool and important which I’m going to cover a little bit more on the proper mix of credit but if you have a few accounts and not multiple then your scores will be damaged more excessively or harder because you have less credit reporting. So it’s going to have a heavier impact.

So let’s say that you have ten accounts and all those accounts have two years of perfect payment history and let’s say one of those accounts you end up getting a 30-day late payment well they’re gonna take everything and look at that and say “look well we had nine accounts with positive payment history and this one account it’s still going to have a negative impact very heavily but still it’s gonna be less of an impact because you do have credibility with those other accounts.

Now let’s use that same example let’s say that you only had three accounts and you had two of them that have a perfect payment history and you have that one get two late payments. Well obviously because you have less documentation and data that’s going to allow you to show that you’re more responsible or credible you’re going to get hit much harder if you only have those three accounts. So just know what payment history is, it’s pretty straightforward.

Okay, whatever you do try to make your payments on time and one important thing to understand is that you are not allowed to have a 30-day late report to your credit report unless you’re actually 31 days late.

Okay so on that, on that thirtieth day there are some definite things to be aware of. So like on the report it says fifty thirty-one to like sixty and so they couldn’t report a sixty day late unless you were 61 days late so it’s just you know it’s just important obviously you never want to get to that point anyways but if let’s say that you’re 15 days late you’d get a late fee but if you made the payment and it wasn’t 30 days late they can’t report a 30 day late against you so it is a big violation that we see quite a bit but with the payment history.

Again I hope this helps a little bit, helps you understand that payment history alone like I said it was 35% of the score which calculates to 192.5 but as long as you can manage your payments on a monthly basis it’s going to be one huge component to keeping your scores at the top and then part two actually we’re going to get into the credit cards which is my favorite so I’m looking forward to talking to you about that again.

Again, guys, it’s Derek with Credit Absolute and I hope this helped you today. Thank you.

 

 

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Joshua Hawkins
Joshua Hawkins
20:21 30 Sep 21
I love this company I have been thru many different credit companies and no one works like they do! Last month had some financial issues due too moving and loss of job! They set up payment arrangements and let me prolong the payment to them due too not having the money! Shout out to Felisha for being so amazingly kind and supportive! You guys are great keep up the good work and positive vibes!!!!
Taylor Williams
Taylor Williams
16:41 23 Sep 21
I worked with Credit Absolute recently and had a great experience. Derick was prompt, ready and listened to my goals. He gave me the facts and has made positive impact in my scores. Thank you Credit Absolute and Derick!
Elmer J. Howard
Elmer J. Howard
20:46 20 Sep 21
Credit Absolute is great at working legitimately with clients to fix and remove negative information from credit reports. They also provide very helpful credit counseling and education. I highly recommend them and refer clients over to them.
Ceylan Wiersum
Ceylan Wiersum
19:11 02 Sep 21
Derick and his Team are just wonderful and have been so helpful answering all my Credit Issues. I reached out to them about being a few months behind with Credit Card payments, and Derick was totally honest that I don't even need his help, I have a good Credit Foundation and explained how I just need to contact my Credit Card Company. He did not try to sell me on his service, he said I can take care of this and fix my situation without his help just fine. But he was so kind to still took the time and answer any of my questions and concerns. I will definitely keep him in mind for future needs!
Seth Harris
Seth Harris
20:35 09 Aug 21
I highly recommend using Credit absolute. I’m just 2 months my wife and I, with so much help from them, have been able to see significant changes in our credit score. They have helped in advising us in different areas with credit cards and being able to leverage our credit. Thank you to this team and all the help they have given us.
Nicole Johnson
Nicole Johnson
22:27 28 Jul 21
I decided to go with Credit Absolute the end of May 2021 after reading positive reviews. I was skeptical at first, but like some others decided to give them a chance. I had tried other credit repair services in the past, but was looking to try a company that did more. I’m glad I did! Nothing but positive results thus far, their method seems to work as I’m getting negative items deleted and corrections updated to my file. Also, my credit scores have increased significantly. Really happy I chose Credit Absolute.
Daisy Dragos
Daisy Dragos
20:15 03 Jun 21
The folks at Credit Absolute have completely changed my life! They aren't the type to just "set it and forget it". They take on your individual case and go in depth to help you make the right moves to get your credit score up. Their attention to detail and responsiveness are unmatched to any other financial institution/advisor I have worked with in the past. I love the fact that we have monthly 1 on 1 reviews to go over my progress and to set next steps on how to keep improving (they also hold me accountable, which I need haha). If you are like me and never had much education on credit best practices, Credit Absolute will guide you step by step and they are always willing to answer questions or provide you with the resources you may need. They are a company who TRULY cares about their clients and it shows. I have been working with them for about a year now and not only has my credit score gone up significantly, but I now have the education I need to continue to make wise financial decisions in the future. I am glad to have Credit Absolute as apart of my "team" as I work towards my financial goals!
Mark White
Mark White
19:47 28 May 21
I was surprised by the results. It happened relatively quick and I was very impressed with the true professionalism. My credit has now improved to where my scores are up by over 100 pts and I was able to open two credit cards and start my way back to having great credit again. I highly recommend this company and will refer anyone who needs to improve their credit. Thank you team for all that you did and continue to do for me.
AllHail TheQueen
AllHail TheQueen
23:27 14 May 21
I started Credit Absolute in April 2020, we are now in the beginning of May 2020and my score has already increased tremendously. I was not expecting movement so soon! The team is very well versed and experienced in what they do, most importantly they love helping others get credit approvals and it shows. You are provided with a lot of resourceful videos to get an understanding of how credit works, the myths, and the methods to help you get back on track. In addition, the team is very attentive with updating you every step of the way, sending you emails of progress and setting up one-on-one sessions. I joined Credit Absolute to get me on track to purchase a home & I can easily see that happening sooner than I thought. I am grateful for their quality of business, it was the best decision I made.
Alexander granillo
Alexander granillo
22:56 20 Apr 21
I have been a client of Credit Absolute for over a year now and it truly has been one of the best decision that I have ever made. Credit Absolute helped to improve my credit score and I am so happy about it!! Their staff (Felicia, Karina) are extremely helpful and resourceful. I highly recommend Credit Absolute if you want to improve your credit score!!
Bryant redd
Bryant redd
20:22 13 Apr 21
After reading all of the great reviews about Credit Absolute, I decided to give them a shot. I do not regret that decision! When I first started out my credit score was below 500 with a TON of accounts in collections and late payments.. Fast-forward a few months, I'm now sitting at a 600+ credit score 80+ late payments removed, and I'm almost ready to buy a house. The whole team over at Credit Absolute have been so helpful in guiding and teaching me throughout this process. (A very special thank you to Felicia for being so welcoming and available to answer EVERY question I have ever had about credit.) A little advice to people contemplating on whether or not to join - DO IT. Initially, I was hesitant because some things just seem too good to be true, right? Wrong. It really is THAT easy.. These people go to bat for you and they LITERALLY do all of the work. You have nothing to lose. If you are looking for credit repair, you're here for a reason. If you don't do anything about it, nothing is going to change. Give them a chance. I wish I had done this years ago.
Matt Pine
Matt Pine
15:46 07 Apr 21
Was referred to credit absolute by a mortgage lender to raise my credit score. Within the first 2 months my credit score improved by nearly 60 points. Great service , staff is wonderful and always available for support. Well worth it👍👍👍👍👍
Bri K
Bri K
20:58 12 Mar 21
I’m so grateful for Credit absolute. From the very beginning speaking with Derick I felt at ease because he was so knowledgeable about how everything worked. Then there are his associate Felicia and Karina who have both been so great through this entire process doing monthly reviews so I can see first hand the progress and improvement. I will say it was a lot I didn’t understand about credit until I started with them and now I feel comfortable and equipped to better manage my credit successfully. Most importantly though is the fact I got real results! My credit score has went up almost 40pts since starting last summer and I honestly couldn’t of done it without this company. I still have a little ways to go but I’m confident I will almost A1 credit once I’m completed because it hasn’t even been a year and I’m seeing major improvements.
Daniel T
Daniel T
15:10 09 Mar 21
So far good company to work with, very professional, yes they are busy but they will respect all appointments. I missed one of my appointments with them and they called me until I answered and rescheduled and got it done. Thx to them, got a few deletions as well and they will definitely help you out. I do recommend!!!!
Krystal McClure
Krystal McClure
22:46 11 Feb 21
This company is awesome! They have a great team who are very straight forward and honest. They answer any and all questions you may have throughout the process. There are no surprises, they do a very great job providing all the information you need prior to any commitment. Derogatory items were removed and my credit score shot up in less than 5 months. Wow!
Ulysses Martinez
Ulysses Martinez
21:06 05 Jun 20
Credit Absolate is helping me get my credit score up. They have done by far a fantastic job. I couldn't be more happy with the experience and the customer experience is phenomenal as if your part of the family. They make sure you understand your credit usage and the educational videos are very clear. They are changing my life around. Just being with them for 2 months I got my score from poor to fair and dropped of some accounts from my cresit report. I cant thank them enough. Truly a success story
Angel  Maldonado
Angel Maldonado
14:27 30 May 20
They are amazing! Not just Derk but the whole team is great. The videos they provide are so helpful. They just don't help you improve your credit score, they also teach you how to manage your credit score. If you have bad credit contact them 1st before you even start trying to fix your credit on your own!!!
Keith Russell
Keith Russell
23:40 29 May 20
Easy to work with. Very fact based and focus on teaching me how the credit scoring system really works. My credit score increased by 100 points. Best investment in my credit worthiness. Great customer service, this is the real deal.
Fanisha Vela
Fanisha Vela
16:05 05 May 20
This is a wonderful team to work with. They have made the process so easy and efficient. Results seen within the first round of action!
Brandon Dickinson
Brandon Dickinson
01:04 26 Mar 20
What an awesome team. They work hard and get things done. My credit has jumped amazingly and the coaching videos are very informative to every detail. Would recommend this company to anyone looking to better their credit.
Bre Udave
Bre Udave
22:59 04 Mar 20
this has been one of the best experiences i've had working with a company! i am very happy with my success thus far and everyone (especially Leslie) has been so helpful with everything! If you're looking to fix your credit, stop searching and use this company!!
Steven Lasseson
Steven Lasseson
14:51 28 Feb 20
I've tried a few other credit repair companies and Credit Absolute has provided the best service I've come across. In just over a year, they were able to get numerous items removed from my credit report. The process is simple, the staff is easy to work with, and the results are everything you'd hope for. If you are looking for help in your journey to financial freedom, do yourself a favor and give Credit Absolute a call.
Kade Deeyor
Kade Deeyor
21:51 19 Feb 20
Credit Absolute has been a huge help for me. Since the beginning I’ve seen an enormous increase in my credit score. Felicia and Leslie are especially helpful, concise, and very informative. They both always get back to me within minutes if I have any questions or concerns. I would highly recommend Credit Absolute to anyone seeking a better understanding of how Credit Scores actually work or if you’re looking to increase your scores.
Phuong Mai Pham
Phuong Mai Pham
17:56 13 Feb 20
Credit absolute has helped me tremendously over the past few months. My scores for all 3 credit bureaus have increased by 50+ points. I appreciate the education on credit. I am now much more knowledgeable and strategic about when I should and should not use my credit cards. I look forward to my progress as my goal is to purchase a home by the end of the year!
Doug Donaldson
Doug Donaldson
06:13 21 Dec 19
I noticed a few changes on my credit report that had lowered my score which concerned me and after looking at reviews online I decided to set an appointment with Derek at Credit Absolute. I was fully expecting to spend hundreds of dollars for his advice on what I should do to get it back up to where I had it. After consulting with him and looking in depth at my report, he gave me some tips and helped me understand how the 3 bureaus work and what I could do to increase my score. Best of all..... he didn't charge me a penny. Derek is an honest guy, running an honest business, and if you are looking to build your credit score then he is the guy to turn to. It was about a year ago that I met with him and my score is up over 90 points. 10/10 would recommend Derek at Credit Absolute!
Ashley Krolak
Ashley Krolak
21:58 25 Nov 19
Thank you to entire team at Credit Absolute! We have accomplished so much in a short amount of time. They have helped my whole family increase our scores. They are organized, helpful and get the job done all while teaching you helpful hints along the way. I highly recommend this company for any credit needs.
dan uyematsud
dan uyematsud
21:29 13 Nov 19
Simply the BEST!!!!!!! Derick, Felicia and Becky are extremely good at their job. They work very hard to teach one how to improve their credit as they work very hard on their end to build your credit. I am very pleased as I see my credit score increasing in a short period of time. Thank you again, Dan U
nestor victore
nestor victore
22:14 04 Nov 19
You guys have done an amazing job, I'm very happy with my score has improved over 100 points. I'm happy with you guys services and help, thanks.
Tina Abbott
Tina Abbott
02:07 01 Nov 19
My experience with Credit Absolute has been nothing but wonderful! The entire staff are very knowledgeable and understanding. Felica is the one of the nicest people.
Christopher Moore
Christopher Moore
15:10 03 Oct 19
Communication with Derick and the team couldn't be better. I spoke directly to Derick and he was upfront, honest and didn't waste time. I would certainly recommend Credit Absolute to anyone who is looking into credit repair. They'll give you an honest overview of where you are and what they can do to help you reach your goals!
David Burgess
David Burgess
19:02 20 Aug 19
Derick and his team have been extremely helpful and informative throughout this entire process. I would recommend to anyone who wants/needs to repair credit quickly! Worth more than the money without question!
steve moore
steve moore
23:32 16 Aug 19
Derick and his team were awesome! I would highly recommend their services if you are looking to refurbish your credit score!!! +A all around for his team and the willingness to help me out !
Zacary Roberts
Zacary Roberts
03:00 26 Jul 19
Felicia helped me out so much, the company is professional l, but they treat you like your their only client. They are thorough and honest and my credit score has gone up remarkably ever since I started working with them. Thank you so much!
Chris Gunn
Chris Gunn
18:50 25 Jul 19
Good folks. Money well spent. Their service works! I finally got my credit straightened out to where I could buy a home because of them.
Christy Russell
Christy Russell
15:37 25 Jul 19
This company provides a great service! Friendly staff, plain-spoken, direct, no nonsense. They really make you feel like they care. Simple and straight-forward approach. They analyze your credit report and quickly make a plan to step-by-step repair any flags. I highly recommend their program.
Christian Wunder
Christian Wunder
19:35 18 Jul 19
They have been great to work with. Going on 3 months now and my score has taken a huge jump. I've had items removed from my credit and every month we go over our strategy to maximize the improvements. Highly recommend :)
Baron Adelmann
Baron Adelmann
21:59 26 Oct 17
Derick and his team have helped me tremendously! He explains the process of improving your credit and does all of the work for you! My credit score has improved drastically and I know that I couldn't have done it without the help of Credit Absolute. Because of them, my business has continued to thrive in a way I never thought possible. Thank you Derick and the Credit Absolute Team!
Gabriela Lovelace
Gabriela Lovelace
23:17 30 Jun 17
I want to thank the wonderful team of Credit Absolute for all the work they did in help me clean my credit! They have teach me how to keep my credit clean and how to make it grow! I will be their customer for life and I recommend to anyone who needs help with their credit! Credit Absolute you are awesome!!!!
Sho Sho Smith
Sho Sho Smith
22:31 16 Feb 17
Derek just made my day when I thought my credit was being compromised due to a balance on my late husband's credit card. He checked it out my credit health and assured me that I lost no points and the balance was forgiven. Great news! He gave me pointers on how to get my credit score even higher to put me into the premium level and coached me on getting back on my feet, credit-wise, after my husband's death. A great experience!
Vanity Hernandez
Vanity Hernandez
20:15 19 Jul 16
I was referred to Derick when my credit score dropped 3 points as I was in the process of trying to get a mortgage loan. Derick gave me GREAT advise and also helped confirm all the credit myths I have overheard on how to improve your credit score. Not only did he give me advise, he not once tried to have me hire him like others usually do. Derick was genuine and that's hard to come across with business. :)
Ian Farruggio
Ian Farruggio
19:29 05 Jul 16
Derek was completely professional and offered helpful suggestions to help me improve my credit. He was honest, in that his services were really not needed and helped to point me in the right direction free of charge. If you have any questions regarding your credit, this is the only place to go!!!
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