Tag Archives: credit card

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.

 

 

How Can You Change That Low Credit Score?

what-is-the-best-credit-score-612x281

Low credit score–you had no idea! How did it happen without you even being aware? Look, if you don’t pay attention to your financial habits and work to keep your credit rating healthy, it will drop, and you won’t be alerted about that either. It’s murky waters out there, but you can keep from drowning. Too many Canadians are hit hard with a poor credit score they had no idea about. The sad news is that bad choices from the past can come back and haunt you, ruining what was a great score before you ever realize what is happening. The tips below can help you avoid financial mistakes and help you to get your credit score back up where you need it to be!

 Let’s Get Started Getting That Credit Score In Shape

FICO-FAKO-real-credit-score-680x430

So, the first step to take is to become more proactive with your finances and your credit.  Understanding how to keep track of data like this can help you catch a suspicious transaction that has the potential of destroying your credit too.

  1.   If you carry a high balance on your credit card every month (even if you pay it off) it goes against you. This makes it appear you rely on your credit card to survive month to month. Some have the idea that this builds credit, as long as there is a 0 balance carried over. It’s simply not true. Don’t exceed 40% of your available credit.
  2. One of the biggest mistakes an individual can make is applying for too many credit cards. Every time you apply for a credit card you have the potential of denting your score. This makes you look needy and might steer good creditors away.
  3. Sadly, some Canadians can find their accounts sent to collections without ever having any idea of it. Those accounts which are more prone to this happening are medical. It might not seem fair, but it happens almost daily. Much of this falls onto the fault of insurance companies not paying claims on time. However, consumers are the ones who suffer financially.
  4. You need to consistently check for errors on your credit report, because they do happen. If you find something that is concerning, or which you know is not accurate then you should make the proper contact so that the issue can be resolved and your credit can be repaired.

credit_score

Just these 4 simple practices can help to make a difference in your financial habits and certainly your credit rating. We all make mistakes, it’s natural. It’s how you approach your mistakes that change your life. Start building a good, solid credit history today and pay attention to your own financial habits as well. Slowly but surely you’ll see that score begin to rise!