Tag - equifax

Canada Credit tells you how to be wise with your credit.

How to Be Wise With Your Credit Card

There is so much information floating around as to how you should spend your money, or how you should only use your credit card during these certain times, but only if there’s this much balance on it, etc.

Allow us to simplify.

How should you be using your credit card, you wonder? Here are the basics!

When you start thinking about your finances as early as University, it will help your credit report.

1. Start in University–or even earlier

When I first started in university, I got my first credit card. Not because anyone told me too, but I figured that I was an adult now, and that sounded like an adult move. Turns out, it was a great idea.

The card had a whole $500 limit. Sounds like chump change now for a limit, right?! But it was the way to go. Maybe a bit more could be more sufficient. I didn’t overspend, though I wanted to often, as a first-year student in university and I wanted to make the time memorable. Mostly only books and coffees would go onto the card which there were more than enough of to need to make regular payments!

If the account isn’t used often, your credit report could still get better. How so?

Lenny Credit states in an online article, “It shows an ability to get approval–lenders will see it as an endorsement from other lenders.” Also, “The more lenders who see you as a good risk and are willing to advance you credit cards or lines of credit, the better your score can look–provide you manage it correctly.” 

When you have a credit history right off the bat, it is a fantastic thing. And the longer the history, the better! Start as early as possible (within reason). Lenders realize you are a reliable person over a long period which will make them more likely to give approval.

Even having more than one could be helpful! But sticking to the low limit at the same time. You want to do the most you can to have strong credit. If you know you can be a responsible person.

2. Use the card for everyday expenses

Credit cards should not be only for ‘just in case’ or ’emergency’ scenarios. Hardly any benefits come from having credit if it’s not being used–stays stagnant, and you want to be making it better and better.

Sit down with your partner to create a budget for your expenses, credit card, and life.

You want to have an emergency fund, of course, as life is unpredictable. Though, this should be part of your savings rather than being reliant on credit. Use the card for everyday expenses instead to take advantage of the benefits of having credit in the first place. Groceries, clothes, gas, for example! That much-needed morning Tim Horton’s run.

But be sure you have the money right now. That is essential. Living within your means is necessary, so you don’t go into a black hole of debt and spending. It’s easy to get carried away before you even realize what is happening.

So, make a budget and stick to it! Write realistic goals with your significant other and family members. Beyond those big-ticket items such as house bills, medical expenses, car and phone payments. Create a list of errands for the day or the week too. Whether it’s picking up more laundry detergent or pet food and keep those pesky impulse buys out of the equation. They add up fast! Or, include a part of the weekly budget if you must specify for that reason. Just be sure you can afford it.

4. Protect your money!

Financial fraud happens more often than people think. Protecting your finances is an essential part of being money-savvy.

Remember last year when the Equifax data breach happened? Here’s a refresher: According to The Star, “The Equifax breach is considered the largest leak of personal information in history…”

The same article states approximately 147.9 million individuals in the United States were victims, plus 19,000 Canadians, and many also in the United Kingdom.

Victims of what exactly? Their personal information being accessed and stolen, and therefore potential access to their finances and more.

“… Names, addresses, social insurance numbers (SIN) and, in limited cases, credit card numbers among the personal information potentially accessed,” states CBC in an article released shortly after the breach last year.

NBC News shares great ways to make sure your money is safe, one of them being to monitor your accounts regularly. Free credit reports can be retrieved from Equifax (oh the irony) or TransUnion once a year. It also recommends going to a monitoring and protection company to be extra safe.

Not to mention the rise of “contactless” cards, also known as “tap and pay.”

Global News expressed back in 2015 that, “Despite the convenience, these types of credit cards could also make you vulnerable to being skimmed without it ever leaving your pocket.” Basically, the thief can get a hold of your card information from just being close to you and not even coming into physical contact with the card.

Credit fraud and theft happen. Are your finances safe?

A study conducted by VISA on “perceptions of trust and security around payment methods” found that tap and pay is fast becoming the favored payment method, according to more than half of the respondents.

It also states that “In addition, eight-out-of-10 Canadians view contactless cards as a very convenient way to pay, and 45 percent view it as very secure.”

Though, debit and credit cards come with a $100 limit with the tap and pay, which is a relief. But more and more reasons are popping up as to why everyone should protect their money. 

4. Pay it on time!

Business Insider goes into detail of a situation where a woman simply forgot to pay her credit card bill on time.

“Though she paid the late bill over the phone soon after,” the article states, “the incident came back to haunt her when she went to apply for a mortgage four years later when the underwriter questioned the gaffe.”

Anyone can set up an online payment in 5 minutes! You will be hard-pressed to find a financial institution these days that doesn’t have online banking or scheduled payments available. This has been a lifesaver for me countless times. Personally, I would never remember to put shoes on my feet ever, besides the fact we live in winter for most of the year.

Furthermore, paying your bill on time is a big, huge, important part of having a credit account of any kind. It is one of the biggest indications that lenders take into consideration with the decision of approving.

To be specific, according to The Balance, “Thirty-five percent (35%) of your credit score is based on whether your payments are made on time. Your credit score benefits the most if you consistently make your credit card payments (and all your other payments) on time.

Besides that, payments made on time is part of what keeps your monthly payment low, your interest rate and insurance rates low.

We hope this helps! For more information on credit protection, restoration, and improvement, visit creditcanada.net.

If your credit score is lower than you want it to be, let Canada Credit help.

How to improve my credit score to improve my lifestyle

How does a credit score have anything to do with how you live your life?

Your finances and score on your report matters because it all affects so many facets of your life. Ever had thoughts like these?

  • “Why can’t I buy products when I’m online shopping and not feel guilty?”
  • “Where is the cheapest gym membership?”
  • “If I took cooking classes, I could have my family over and be the one cooking for them for once.”
  • “I want to go out at night with my friends, wine and dine without checking my bank account the whole time.”
  • “New furniture for my apartment would be great.”

It matters whether your score is good or bad because you should be able to do what you yearn for in your own life. Though if bad finances are in the way, it affects people doing what they wish in their life.

With Canada Credit Cares, you can fix your credit score do you can live life the way you want to.

For a happy life, it should contain hobbies, things that make you smile and fill you up with joy. The Huffington Post has a list on how to be happy, with one that states to, “Spend money on experiences.” With money problems, it can be difficult to do that. It even goes into more detail on how exercising, developing your cooking skills, and spending money on other people can help.

Not having a high number for your score can affect your livelihood, employment, even transportation. But if you choose to make your credit better, you can improve your way of life, and have money to do the things you want.

“I don’t even have a credit card and no debt! I should be fine!”

Not having a credit card is not a positive thing. An article from Time goes into detail of why lack of credit is disadvantageous and could make you appear dubious to potential lenders. No visual trail, no way to see if you’re good with your funds.

But be careful! Too much credit and too many cards aren’t good either. It depends on your debt-to-income ratio.

Where to begin?

If you aren’t protecting and checking in on your financial information, start now. Canada Credit states in their credit protection information that according to The Canadian Anti-Fraud Centre, “… almost 16 billion dollars in losses directly related identity theft and fraud.” Do not let that become a reality for you.

Look at the credit score averages in Canada. It’s good to know the general idea of where it should and could be.

Get in the right mindset. Without the proper motivation, or if you put stress on yourself, no progress will happen.

What to do?

Check your credit report at least once a year. The Government of Canada states you should request a copy of it from one company, such as Equifax, wait six months, then request from another. TransUnion, for instance.

Pay your whole balance on time, every single month. Or do your best at keeping the number as low as possible, according to Experian.

Make a budget and stick to your budget! Put funds away so you can’t even see it and pretend it doesn’t exist. Calculate your spending each day on meals and coffee and look at the total at the end of the week. More than you may think when you picture it all together that.

Keep your credit and financial history as long as you can. If your history is short, less evidence exists to whether it is satisfactory.

Have multiple types of credit on the go. CreditCards.com states, “Consumers with a ‘mix’ of credit types on their credit reports tend to be not so risky than those who have experience with only one type of credit.”

We are not saying that a good credit score or money is the key to happiness. Though it makes life easier, and easier to do the things that bring us happiness.

 

 

Canada Credit cares about Canadians credit score!

How lousy are credit scores in Canada?

Averages in Canada, and when to think more about your score

Your credit score is your monetary portfolio. Every individual has a unique one based on their personal financial position and all that factors into it.

There is a numeric number between 300 and 600 to pinpoint a person’s score. The Government of Canada explains how credit ratings work in North America. They even delve into how being high on the scale means less liability and uncertainty for the company who is lending. Vice versa, a lower score means more risk.

Why does it matter so much?

Every person who has applied for credit or a loan in the past has a credit score. Everyone should know what it is. All the companies that handle your finances send information about your money. Your credit score can affect lots in your life; when you try to buy a house or a car, get a new job, or even take out student loans.

Equifax and TransUnion are the two big credit bureaus in Canada at the moment. There was a big security breach for Equifax earlier this year, so beyond knowing the score, you should take steps to make sure your finances are protected.

Money Sense states there being five main factors that go into determining each one based on, “payment history, outstanding debt, credit account history, recent inquiries and types of credit.” For example, factors such as whether you have a bad habit of not paying bills on time, or how much debt you owe versus your limit. Even how many accounts you handle.

What is a good credit score versus bad credit score?

According to the Huffington Post Canada, “The average Canadian scores around 600, with numbers in the 700 and above considered ‘very good.'”

Though the earlier mentioned Money Sense article claims the typical Canadian score is around 700, and, “Anything under 620 could affect your ability to secure a loan.”

A different point of view is being over 700 doesn’t matter because they are “a no-brainer” and will be given approval this article states from The Globe and Mail. But, the score may likewise shift in an instant from your actions.

With bad credit or no credit, Canada Credit cares about Canadians and getting their credit score where it should be.

How are Canadians doing?

Canada CreditCards.com shows statistical information from 2015 from Equifax, which conveys the most common rating was between 680 and 749. Canadians within that margin were 21.4%.

Those with the safest numbers (750 or above) were at 60.51%. Those under 520, or “extreme risk” were only at 2.85%.

Loans Canada delves even further into the numbers and states chances are doubtless a person with a score of 780 or higher gets permission for a loan. Though, “Individuals whose credit scores are less than 500 will not get approved for new credit and should seek credit improvement help.” In between those, there will be a higher interest rate because of the risk, getting loans won’t be easy, and individuals should look into repairing scores if under 579.

Want a comparison of those in the U.S.? Likewise, with 2015 info, an article from Value Penguin states, “The average credit score in the United States is at an all-time high of 695. Though different scoring models exist, which cause this figure to fluctuate by a few points, most fall between 660 to 720.”

Canadians and those from the U.S. are doing well on average! But if you want help, ways to approach raising your score are possible!

Do you think you need to make some changes to your credit score?

Canada Credit Cares about Veterans, Waives Setup Fees for Credit Rebuilding Services

Canada Credit Cares launched its latest program for current and former members of the Canadian Armed Forces. All CAF and Canadian veterans will have their veterans credit repair setup fees waived. Veterans and CAF members are also automatically approved for any Canada Credit and Canada Credit Fix programs.

Veterans Credit Repair Initiative

Canada Credit Cares launches its latest charitable initiative today. Offering CAF veterans special discounts for its veterans credit repair and credit score rebuilding services. This new drive to help CAF veterans waives setup fees as well as automatically approves veterans for program membership. Helping Canada’s peacekeeping veterans is part of Canada Credit Cares’ drive to help. Canada Credit Cares recognizes the sacrifices veterans make in their lives in order to serve their country.

Veteran Hardships

It is not uncommon to hear stories about financial hardships for Canadian veterans. The National Defence and Canadian Forces Ombudsman released a report in 2013. It was titled “On the Homefront: Assessing the Well-being of Canada’s Military Families in the New Millennium.”
In the report, key issues were identified as contributing to financial hardships for Canadian forces families. These issues included separation and hardship caused by overseas deployments. Employment issues for families due to geographical relocation were also mentioned. Other obstacles included off-base housing costs, suitable housing, accessing social benefits and health care and raising families.

Veterans wounded in the line of duty have to handle a variety of issues. This includes health care costs, loss of employment and insufficient benefits to handle financial hardship. Not to mention the physical and psychological effects of their wounds. These issues have become more pronounced since Canada’s deployment to Afghanistan and the effects are not exclusively physical. It is not uncommon to hear about veterans struggling with post-traumatic stress disorder and depression both during and after deployment. Difficulties in acquiring proper treatment and sufficient benefits to cover costs compound these issues.

Financial Struggles

Canadian forces members are proud of their service and receive more support than in the past. But, there are veterans and serving CAF members that fall under financial hardships. This can be due to the rigors and trials of military life and post military civilian life. Under these conditions it’s difficult to maintain a positive financial record and credit score. Hence the need for veterans credit repair. These problems are compounded when extended to their spouses. Whom also have to share in the burdens involved with military life. Relocation, loss of work, injury, delays in benefits and difficulty finding gainful, stable employment result in late payments. These can affect their credit reports, dragging down a healthy Equifax and Transunion credit score and rating.

Canada Credit and Canada Credit Fix; Here to Help

Canada Credit and Canada Credit Fix CEO Sheldon Wolf extended an offer to waive the veterans credit repair setup fees. This is for the Canada Credit, Canada Credit Fix, and Credit Advise programs. These are available to all CAF members and veterans. Veterans are granted automatic approval to these programs just for applying. It is Canada Credit Cares’ way of contributing to the well-being of all past and present members of the CAF. Acknowledging their sacrifice and the financial issues facing hard working and loyal armed forces personnel. Wolf has also announced that in some cases his firm will be offering veterans credit repair restoration pro-bono. This is to help veterans acquire the accurate credit that they deserve.

Sheldon Wolf wants to give back to our veterans and armed forces personnel. Their loyalty, hard work and service to their country is incredible. Current and past members of the armed forces will also receive automatic approval for veterans credit repair. And credit improvement programs through Canada Credit Cares. The armed forces lifestyle includes sacrifices and hardship. But, it should not come at the expense of their financial record. Armed forces members both past and present deserve financial solvency like anyone else.

Canada Credit Cares is proud to help alleviate financial pressures for our veterans. And our current serving members of the armed forces through their latest charitable initiative.