Category Archives: Your FICO score

7 Tips to Avoid These Costly Credit Card Mistakes

Credit cards can be friend or foe to your wallet or pocketbook, it all depends on how you utilize them and of course, manage them. So, what can you do to make certain you aren’t accidentally engaging in improper credit card habits? There are ways to avoid all of those spine crushing fees–specifically if you start making your monthly payment on time. And if you pay more than what is required you’ll be even better off.

It seems, that no matter how many times we read about critical credit card mistakes, they just keep happening. There’s no way to know for sure if it is just due to forgetfulness, or the inability to stay on task and meet goals. In this respect, we’ve put together a help list to possibly prevent new credit card holders from falling into the same tragedy so many others have.

Let’s see what we’ve come up with. And just remember, managing your credit card activity better can free up more money for you! It will ensure you have some kind of safety net without stress. Most certainly, you won’t need to look for high interest loans when you better manage your spending.

Don’t Let These Haunt Your FICO Score For Years

If you can avoid these costly mistakes you can protect your financial future. Unfortunately your FICO score has an impact in many areas of normal, everyday life. While it isn’t like this everywhere in the world–it is in Canada and the US. Because of this importance, you have to stay vigilant. You can repair poor credit when you think smart too!

credit cards

  • Don’t view your credit card as if it is free money: Nothing is free in this world and viewing a credit card as an easier way to have access to money is not wise. You have to pay it back, and you have to do it on time. Stay on budget, and don’t treat a credit card like a blank check for your entertainment.
  • Don’t live beyond your means and make senseless purchases: It can be easy to pick up that jacket you’ve been wanting all week, but can you really afford it? You have to be able to pay for what you charge, and too many get carried away. If you plan on paying of your purchases at the end of the month you’ll be fine. If you don’t and you over spend, then you have a real problem.
  • Don’t max out your credit cards: When you overspend you can easily max out your credit card. This is bad for your credit history and bad for your pocketbook. It shows you’re living on credit and not on income. Don’t do it! It is also expensive to pay back and you never know when you might not be able to pay.
  • Don’t apply for more credit for all the wrong reasons: Only apply for additional credit if you’re doing it to minimize current credit card costs. If you have an offer where fees are less, then it might be wise to transfer a balance over. Just don’t do this to spend more money.
  • Don’t not know your credit score: When you’re applying for credit cards don’t just blindly do so. You need to be aware of what your credit score is so you are aware of what offers suit you best. Applying to just anything actually can lower your credit score as you get too many inquiries on your credit report in a short time.
  • Don’t ignore the fine print on an offer: It is sad to apply for credit, receive an offer and then just blindly dive in. You need to read the fine print to be aware of fees and any rewards that might be available. Too many Canadians get overly excited for an offer and just take it. This is a big mistake. Take your time and know the creditor!
  • Of course you should never miss payments: Missing one payment isn’t a sin, but if you are constantly late on your payments and always in behind on what is owed, then this is bad. Creditors will not favor someone who can’t stay on top of their debt. Don’t get in over your head and always meet your payments like clockwork.

If you follow these tips then having a couple of credit cards can be great for a consumer. Stay on a budget and they can work even better. The more you use your credit and pay it off in full, the better your credit report will look. Go and overspend and not pay back in a timely manner and your credit report will suffer. Be smart and take advantage of a couple credit cards to prove your creditworthiness–not bury yourself in debt!

4 Reasons Why Good Credit Really Does Matter

Good credit really does matter, whether Canadians (or anyone) like it or not. It’s imperative to try and keep your credit report clean and maintain a decent score. It impacts everything in life. While it is quite understandable to be knocked around every once in awhile, the goal should be to get back on track as soon as possible. You want to do your very best to save money, invest money and manage your money to build a grand net worth for the future!

Financial experts within the personal finance realm constantly hear about the importance of credit scores throughout the world. But, while it isn’t as important everywhere, you have to be worried about where you reside! You have to pay attention to your portfolio, your identity and your personal finances with a keen eye–that is if you’re going to get to where you want to be financially. Good credit can help you out in a variety of situations, just like bad credit can be morbid for your life. Once again, whether you like it or not–the totality is that your credit score can clearly impact your overall quality of life.

Good Credit Can Ensure You Achieve Goals In Life

A couple smiling at the camera while holding a document

A couple smiling at the camera while holding a document

Below we are going to share 4 critical areas where having a good credit score can help you achieve your goals. This can be anything from having the ability to acquire pet insurance, to being approved for a Credit Union checking account and more.

Your credit score can hinder your job search

It really is sad that a credit score can keep you from the job of your dreams, but unfortunately, it can. If you are a financial accountant, or you work in a bank–your credit can cost you your job, or prevent you from ever landing one. While it just feels wrong that hiring managers look at this aspect of your life, it happens every day. It is just one reason why your credit is so very important. You might have the best skills for a position, and the experience to validate yourself as the ideal candidate, but your money management skills might turn out to be your worst enemy. You can enroll in financial counseling services to turn this around, and doing so can go in your favor too.

When you want to start a business

This one makes sense because you need revenue to begin a business. For most people, they need to try and gain investors, but investors are going to want to know how well you handle your finances and what equity you’re putting into a start-up yourself. In fact, if you go the traditional route for revenue, financial institutions are going to scrutinize every area of your finances. So, you have to stay on your toes with this one unless you have rich friends willing to help. Another shot would be to go through kick-starter, but credit is a huge piece of criteria here.

Making a move and getting utilities turned on without a deposit

Your credit impacts your ability to get your utilities turned on in an affordable way. No one wants to spend a lot of money relocating only to find they have to shell out $300 for an electric deposit, or $150 for their water to be turned on. That is just awful, especially when most have to put up a sizable amount to move to a new place. This is why credit scores are so important to manage on a more domestic level. You want to be able to provide housing to your family, but not break the bank doing so.

Applying for financing for jewelry or other high end items 

If you’re hoping to finance a wedding ring, or engagement ring–or any kind of item such as this, poor credit can have jewelers turning you down everywhere you go. It can be disappointing, but it isn’t the end of the world either. Until you can build up your credit and acquire good standing again you simply have to save to pay for an item like this. Financial experts claim paying cash for these items is smarter than having payments for a few years.



5 Proven Tips To Raise Your Credit Score In 2016

Improving credit

That credit score is everything, isn’t it?  For so many Canadians, it is like a ball and chain, forever holding them back from lower interest rates and better financing opportunities in general.  Your credit score can keep you from landing a great job.  Now, while this doesn’t seem fair, it’s just how things work in some parts of the world.  Within Canada, and all across British Columbia–a poor credit score certainly spells disaster. While it isn’t easy to get that credit score raised, there are now new and guaranteed ways of doing so.  You can allow 2016 to be the year you’re willing to put forth that 150% effort.  Once you get your credit score healthy, you’ll be amazed at the rewards and benefits which come your way.

Those with the best credit scores are awarded low interest rates, exceptional mortgage loans, great car loans and so much more.  There are even more perks to discover when you get that score in check, but remember, it didn’t get poor overnight. This means: don’t think you’re going to see a transformation in 24 hours either.  However, if you follow these tips you’re going to make headway and reach your goal faster.  So, let’s get started!

Tips You Can Rely On To Raise Your FICO Score In 2016

man in suit showing a signboard with the different ranges of the credit score: excellent, good, fair and poor


Now, if you’re looking for some immediate relief, there are three tips that are outside of those traditional moves that enhance and improve your FICO score overtime.  You might know about this and you might not, but we did think they were worth sharing. The first of these three is all about how you are using your credit.  You should never exceed more than 40% of your available credit limit, and if you do, you should at least pay half of the balance due at the end of every month.  Also, if you have other credit cards, this will open up more credit for you, and if they are used wisely you’ll build up a solid credit history. Just use them for what they are intended for–improving your FICO score!

Another quick fix is checking your report for errors.  Many Canadians have errors on their credit report, and many don’t even know about it.  This can happen from identity theft, to a charge-off, to a simple clerical error.  You can always dispute an item on your credit report and give your side of the story.  Further, if you see small items that need paid off–why not do it? There are so many walking around with items on their report that could easily be improved.  You have to put in the time and effort if you want to improve your FICO score quicker than normal!

5 More Common Tips Toward Raising Your Credit Score

Clean Credit

Remember, those tips mentioned above almost always raise your score 2 to 3 points, but the following strategies take a bit longer and a little more work.  Let’s get started:

Tip 1: Pay more than what you have to on any credit card or loan payment you might have

This illustrates a trustworthy consumer.  Professionals will view you as someone they can have faith in and who is more than honest.  You’re depicted as someone who takes their debt seriously.

Tip 2:  Pay off your card with the highest credit limit

If you’ve used more than 50% of the credit on a specific card, and it happens to be a high-end one, do your best to pay it off totally.  This kind of habit shows that you’re not living on credit, but only building up your credit.  In other words, lenders will see you have disposable income to pay your debt.

Tip 3:  Sign on as an authorized user for your dependents

If you have a teen who is attempting to build credit, signing with them can not only help them build credit, but it can help you repair your own minor mishaps.  As long as they are responsible, and pay their bills on time, this will bring some positive reinforcement for your own credit.

Tip 4:  Did you know you could make more than one monthly payment on your credit cards

Yes!  You can pay twice, or even three times a month if you want to.  The more you pay on these forms of debt, the better your credit report will look.  Don’t place yourself under financial duress to meet a goal like this, but if you can–definitely do so!

Tip 5:  Try to get rid of unpaid collection items

There are more Canadians who are facing FICO drops due to issues like these versus late payments and only paying minimum payments on debt.  If you can find a way to consolidate collection debt it might help you get rid of it sooner, thus improving your score.

If you follow even just a few of these tips you’ll see improvements in that FICO score sooner, rather than later!  Make 2016 the year you begin tackling debt and getting your finances on track.