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Rebuilding Credit And Improving Your Credit Score
Everything you were taught about credit was probably wrong, but rebuilding credit doesnt have to be complicated. Thats a bold statement to start off with but its probably true. Generally speaking, we arent taught how to handle money properly. Not by our parents Or our teachers We had to learn the hard way. And if we werent taught how to handle our money well, what odds did we have when that charismatic person offered us our first credit card in college andgave us just enough rope to hang ourselves with? Have I got a deal for you! You need to know the rules of the game if youre ever going to win. If you want to get a handle on your credit today, you need to understand the rules of rebuilding credit first. The Nine Rules of Credit Rule #1: Always pay your bills on time Rule #2: High balances equal lower scores Rule #3: You must have established credit Rule #4: Some types of credit are better than others Rule #5: What you dont use, you lose Rule #6: Be careful with joint credit Rule #7: Applying for credit lowers your score Rule #8: Closing your credit account lowers your score Rule #9: Dont let someone else wreck your credit Check out the book The Nine Rules of Credit by Richard Moxley as well as Richards website for a more in-depth look into each rule. In this post, we are going to talk about the first two rules and how most people ignore them to their detriment. Rebuilding Credit: High Balances Equal Lower Scores Most people understand that if they dont make your payments on time, their credit score will go down. Thats not a great sign of creditworthiness after all. But the majority of Canadians dont realize that the balances theyre carrying have as much of an impact, if not more. If you loaned a friend a $1000 with the expectation that they would pay you back over time and theystarted missing their payments, do you think you would be eager to loan them more money? What almost no one realizes is that carrying a balance over 50% of your credit limit is also a negative factor. Thats right, you could be making regular payments to your credit card, on time every time, and your credit score will still go down every month! Think of the scenario with your friend again. Lets say you know how much your friend earns (just like the credit card company knows how much you earn) and you have an agreement that your friend can borrow up to the $1000 from you and they have to pay it back at regular intervals, but they can always borrow more, up to the $1000 limit. Youve determined that the $1000 is the maximum amount youre comfortable with risk-wise and your friend opts to borrow the full $1k. A few months go by Theyve made the payments each month, but they always end up borrowing the money again and floating around the $1000 mark. How would you feel about your friends ability to pay you back in whole? What are your odds of getting the full thousand back if you needed it today? This is an example of what your credit score ultimately is. Its a number that measures how companies offering credit feel about you and how risky you are. Having a balance over 50% of the limit on any of your credit cards is actively making yourcredit worse. Read More: Avalanche Method Vs. Snowball Method Generally, the credit bureaus like Equifax and Transunion dont care about how much you owe. It could be a $1000 or it could $100 000. The consider the ratio of how much you owe compared to your limit a much better indicator of how risky you are. So, if you want to start rebuilding credit and see yourscore start rising each month instead of gradually declining, get your balances to below the 50% mark and keep them there. If you can pay off the balances each month, even better. We will cover the remaining Rules of Credit in the next few articles. In the meantime, you need to know where you stand. You can access yourcredit score for free by going to Credit Karma or directly from Equifax and Transunion. Until then, if you want a mortgage professional to take a look at your situation and work on finding you a solution give us a call today at 519-772-7615. Originally published at https://ardentmortgages.ca/rebuilding-credit-and-improving-your-credit-score/
Canadian home sales edge higher in March 2019
Home sales via Canadian MLS Systems edged up 0.9% in March 2019 following a sharp drop in February, leaving activity near some of the lowest levels recorded in the last six years. There was an even split between the number of markets where sales rose from the previous month and those where they waned. Among Canadas larger cities, activity improved in Victoria, the Greater Toronto Area (GTA), Oakville-Milton and Ottawa, whereas it declined in Greater Vancouver, Edmonton, Regina, Saskatoon, London and St. Thomas, Sudbury and Quebec City. Actual (not seasonally adjusted) sales activity fell 4.6% y-o-y to the weakest level for the month since 2013. It was also almost 12% below the 10-year average for March. That said, in British Columbia, Alberta and Saskatchewan, sales were more than 20% below their 10-year average for the month. By contrast, activity is running well above-average in Quebec and New Brunswick. It will be some time before policy measures announced in the recent Federal Budget designed to help first-time homebuyers take effect, said Jason Stephen, CREAs President. In the meantime, many prospective homebuyers remain sidelined by the mortgage stress-test to varying degrees depending on where they are looking to buy. All real estate is local, and REALTORS remain your best source for information about sales and listings where you live or might like to in the future, added Stephen.
5 ways to help stop the sniffles this allergy season
(NC) Spring has sprung again and while the warmer weather is definitely a welcome change, the return of itchy eyes and a constantly dripping nose may not be. Its estimated that 25 per cent of Canadians are affected by seasonal allergies, and depending on what you are allergic to, allergy season may not just affect you in the spring but could also linger right up until the first frost in the fall. This spring, try to avoid the discomfort by getting to the bottom of what is causing your allergies before they start. Here are five tips to help you get ahead of your symptoms: Check the pollen forecast: Be on top of this as it can change daily and really affect your symptoms. If youre planning on exercising, go to the gym or exercise inside on warm, windy days. When you are outside, protect yourself: Wear sunglasses or a hat not only do they look good and block the sun, they also help keep pollen off your body and out of your eyes. Cover up when being active outside: If you are doing outdoor activities like cutting the lawn or gardening, consider wearing a mask or scarf to cover your nose and mouth. Protect yourself from pollen: We carry a lot of pollen into the home with us. Wash your bedding more frequently during spring, summer and fall; keep your windows closed and remember your pets can track pollen into the house, too. Find the right product: Speaking to your local Shoppers Drug Mart pharmacist can be your first line of defense. They can help assess your symptoms and recommend an over-the-counter medication or product. If this isnt enough to kick your symptoms, your pharmacist can write you a prescription for a medication in all provinces excluding British Columbia and Ontario. If your symptoms are more severe, pharmacists in B.C. and Ontario can work with your doctor to make sure you have the right treatment option for you. www.newscanada.com