Yearly Archives - 2017

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?

Is budgeting or money saving at the top of your list? Canada Credit can help!

How to fix my credit score for my New Year’s resolution

A credit score can suffer while celebrating the holiday season. Christmas! Gifts! Food! Family! Friends!

But when the holidays end, your financial position may not be too happy with you. A bad credit score affects many aspects of your life.

Global News states millennials are spending more money on gifts this month than any other age group and plan to spend a lot more than last year. Even with their mountain of debt.

The article further states over half of the Canadian respondents admitted to going over their budget. Also, “41% admitted that they can’t afford to spend as much as they think they will.”

Not even one-third of Canadians make resolutions.

In 2017, statistics show 33% of Canada had fitness as their main resolution, whereas money centered goals were second at only 21%.

Don’t make money mistakes that will make 2018 stressful. You should focus on it now, not be neglecting it.

Start your credit score New Year’s resolution early

First, get the right mindset to ensure you stick to a resolution. Have faith in yourself and erase any doubts.

Are your finances and credit score where they should be? For your New Year's Resolution, Canada Credit Cares can help you get them where you want them.

Truly look after your credit score and money, considering recent occurrences with Equifax.

The American Psychological Association suggests starting small and realistic to make sure your resolution sticks. It is not realistic to fix it as you would a zipper.

Stress builds with money on the mind. APA gives a great reminder to keep people informed in your life who support you. Nothing is wrong with asking advice or help. Be calm, patient and communicative.

Forbes believes people should establish fair goals first. The article mentions having “SMART” goals: “specific, measurable, achievable, relevant and time-bound.” Know your personal credit score specifics and status by keeping in contact with Equifax and TransUnion.

Try to save money when possible. There are ways to reduce spending on big necessities. Financing is available for household items, and we have found online shopping to be cheaper nearly always.

Household debt is precarious at the moment, according to The Globe and Mail. Mortgage borrowing and debt are only increasing. The Bank of Canada, “… considers the country’s high household debt levels to be the biggest source of vulnerability for the country’s economic outlook and financial-system stability.” There are solutions.

Make yourself remember to pay. To reduce your debt and make that pesky credit score better, payments should be regular. Online banks will send reminders if set up.

Do not go over your credit limit. Perhaps obvious, but one of the main things that can mess everything up and set you back instead of forward. We’ve all been there.

Get solid credit advice and aid for credit scores to make your credit rate better, and faster.

Don’t worry if you slip. Mistakes happen, and that is how we grow as humans!

 

But get back to your goal.

 

 

Need some help with raising your credit score? Look no further! Canada Credit will get you through any financial troubles.

Credit Score Affects Equifax TransUnion

What Affects Credit Score, with Equifax and TransUnion

Credit score affects virtually every facet of your life.

Negative information can stay on your credit report for six, seven, ten, up to fourteen years, and become negative for your credit score. Equifax and TransUnion are the two bureaus in Canada that manage credit and have differences in how they handle credit. Research and find out which works the best for your personal financial needs.

Errors on your credit can appear and change your score even if it’s an overlook. Have you been checking yours?

Bad credit can affect everyone in your life. Let Canada Credit make sure you're money is protected!Have all the information. You can use both Equifax and TransUnion if you wish, and they will probably grant you two different credit scores because they each apply unique programs and formulas to come up with the number. But they won’t be too different.

Just how much damage can your bad credit score do to you?

A lot! Have a look:

PEOPLE YOU LOVE

My apologies for turning to a tough note right now. But this information is relevant and important! Relationships can end because of bad credit. Many studies and articles prove so. It does depend on the person and their stance on money, of course, but money problems could put a strain on any relationship.

 

Did you see Rachel Lindsay on The Bachelorette? Never, to my knowledge, has a contestant brought up asking the men for their credit scores in the past seasons. It can be an enormous matter in a relationship and whether you want to pursue a future with someone. Financial distress may lead to relationship distress and emotional distress.

EDUCATION

To attend university or college with no loans is a marvelous feat, though it’s not a reality for many Canadians. This article from VICE states, “… students are left with a collective debt of $28.3 billion according to a 2012 report from Statistics Canada.”

Student loan payments can become troublesome to wrap your head around if the proper strategy and execution aren’t done. If payments are not on time, it may be negative to your credit score. Then affect many other aspects of life. After getting an education and graduating, students are expected to go into the world knowing everything about their expenditures and being prepared to pay everything right away. Not reasonable!

TRANSPORTATION

It always depends on the lender in the end whether they approve an auto loan or not. Interest rates will differ, depending on the individual credit score. Shopping around is crucial. The same vehicle may cost much higher for one individual versus the other, Loans Canada explains.

Parking and traffic tickets can be neglected and escalate. Those pesky and annoying tickets are more hurtful than you may think! Unpaid parking tickets could appear on your report if the figures are that poor. Your score will most likely move back up after paying.

 

Unpaid parking tickets can affect your credit score. A bad credit score could mean not being able to get an auto loan. Credit Canada Cares wants you get the transportation you need.

SHELTER

Food, water, shelter, clothing. One can endure without shelter in particular demographics and conditions. What I mean, is the ability to rent a house or apartment could definitely be affected by your poor score. Or ability to become a homeowner. Or approval for a mortgage or property insurance! These things do matter when thinking of your home.

Credit reports can disclose if you pay your rent or not. Landlords, therefore, raise the cost of your damage deposit or turn you down altogether.

When referring to home insurance, both parties do say different things. But sources state, “representatives of the insurance industry will argue that a credit score is an accurate reflection of a person’s behavior and level of financial responsibility.”

The same report from DMW Insurance Ltd. states, “MoneySense magazine reported in 2013 that rates could increase by as much as 80% based on credit scores. In certain instances, coverage may not get approval.”

Premiums and insurance costs could skyrocket with a bad credit score.

Don’t be discouraged. There are options!

Landlords could raise rent or turn down people because of their bad credit score. Home insurance may not be an option when buying a home. Don't let that happen to you!

LIVELIHOOD

Potential employers will check your credit score. Most likely.

If errors are in your report, it is at the will of the employer whether they hire you or not. Or they could glance at your past employment and contact information. Does depend on the job that is being applied for.

The Huffington Post published an article about a Canadian man who did not get a job because of his credit score. The economic downturn affected his credit, but the matter still ended in rejection.

Are you an entrepreneur? Want to open a small business? The bank checks not only your business credit score but your personal credit score. Though, the reasons behind the numbers are taken into account.

According to an article from The Business Development Bank of Canada and Valérie Bornais, Manager at BDC’s Entrepreneurship Centre in Quebec City, “If it’s the result of an unfortunate event, such as a divorce, but the idea is sound, people are more willing to take a risk and help you out.”

From Equifax Canada numbers and Credit Karma, here is the ranking of credit score numbers.

Options exist to help get your score back up and make sure it remains protected.

 

 

Make sure your money is in a good place. Fix your credit, protect it, and keep it that way with CanadaCredit.

Data breach Damage Control: Equifax, Your Credit Score What to Do to Protect Your Information

Have you been affected by the Equifax data breach? Are you worried your credit score will be affected? How does this incident affect the protection of your credit?

Rest assured, you are not alone. Thousands of Canadians are a part of the security breach last summer and over 145 million people in total. Some of the information stolen includes personal addresses, driver’s license numbers, birthdays, Social Insurance numbers and Social Security numbers.

According to Global News, with the information that was taken, it is enough for the thieves to literally “hijack” the identities of millions of people, and cause near-irreparable damage to their lives.

If you haven’t taken any steps yet to protect your personal finance, information, finances or score since the security breach yet, don’t worry.

We’ve compiled a list of what you should do, whether a part of the Equifax credit security breach or not.

  • See if you’ve been affected in Canada or the United States. Check your current accounts for anything unauthorized. Report right away if you see anything.
  • Check your credit report periodically. Your financial activity can change over time, and it reflects on the report.
  • Set up an identity fraud alert as soon as possible. Freeze your credit if you are in the United States. Use Equifax credit freeze if it applies. The rules are different wherever you are in Canada and the United States though, so ensure you take the correct steps.
  • Receive a free credit report and remove any errors. Then check the report again. Errors canAffected by the Equifax data breach? Even if you weren't, you should be protecting your credit, and personal information.  happen more often than some would think. It will help you get better rates and essentially show you how to save money. The best personal finance is keeping track, and making sure it is all correct. Most bureaus give you a free annual report. Here’s the Equifax free report. Go to one, then another a few months later.
  • Change all of your passwords regularly for all of your personal accounts – whether it be for your bank accounts, social media, anything. Doing it too often is not a bad thing! This website https://haveibeenpwned.com/ checks if you email, or even if your username has been breached before.
  • You will want to get rid of any old documents with personal information on it. Old bank statements, online shopping documents, bills, etc. Shred it! Have a bonfire! You’ll feel better afterward.

Last but not least: Hope that Santa posts his credit card information on the internet one day!