Tag Archives: credit score

How to Financially Plan for Purchasing a Home

Home ownership is a huge step and can be very exciting and nerve-wracking at the same time. Many individuals dream of the day that they will purchase their first home and enjoy all the perks and amenities of doing so. However, in order for the process of purchasing a home to be stress-free and as smooth as possible, it is very important for the soon-to-be homeowners to engage in some very precise and careful financial planning. Home ownership is not something to be rushed into. It is very important for the buyer to be financially prepared and comfortable with the decision they are making. Thankfully, there are some easy steps that one can take as they financially plan to purchase a home.

Consider Your Debt-to-Income Ratio

Before most people are able to purchase a home, they must first consult with a lender of sorts to see if they qualify for a loan. Nine times out of ten, an individual’s debt-to-income ratio will significantly impact whether or not the lender is comfortable with granting a loan to the aspiring homeowner, affirms Realtor.

In layman’s term, a debt-to-income ratio takes an individual’s debts and compares the amount to their income. In the best cases, one’s income outweighs any debts which they might have. After the lender assesses the individual’s debt-to-income ratio, they will determine whether or not the individual qualifies for a loan. If they do, the amount of money which they can borrow will also be determined by the lender.

Nine times out of ten, a 41% to 43% debt-to-income ratio is the highest that lenders will permit. Therefore, this is a very critical financial aspect that each individual should be aware of prior to moving to purchase a home.

Budget and Save Money Accordingly

There are countless expenses associated with homeownership. Many of these fees include, but are not limited to, repairs, home insurance, mortgage, maintenance, upgrades, and more. Of course, the specific numbers of the aforementioned expenses will vary from person to person. The amount of the allotted loan, the cost of the home, and various other monetary numbers will depend on the number of funds which need to be saved.

However, budgeting and saving money accordingly is always important, especially when one is preparing to make such a huge purchase. The proper financial planning saves people so much stress and grief that often comes along when one’s ducks are not in a row.

A Final Word

Purchasing a home is often a complex and very involved process. In addition to taking debt-to-income ratio into account and budgeting/saving accordingly, many people choose to contract the services of a financial advisor before they move forward with purchasing a home. While each individual can make their own financial moves and decisions, sometimes working with a professional can provide some added insight and help with the decision making process.

At the end of the day, any person who is ready to purchase a home deserves a smooth and stress-free process!

Authored by Gabrielle Seunagal


How To Improve Bad Credit

The negative impacts of bad credit are extremely well-documented. The Balance strongly affirms that bad credit is generated by bankruptcies, property repossessions, late payments, and other poor financial decisions. Individuals who suffer from bad credit are furthermore likely to be charged higher interest rates and higher security deposits. They may also be denied loans altogether or have apartment applications turned down. Nevertheless, with the right lifestyle changes, bad credit can be transformed into excellent credit.

Do Not Buy What You Cannot Afford

One of the most common causes of bad credit stems from the individual’s decision to make purchases which surpass their budget. This could mean making excessive credit card charges or buying a house or car that one simply cannot afford. The consequences of living above one’s means come in the form of paying interest, having property repossessed, and, of course, maintaining a low credit score.

To avoid this unfortunately common mistake, people must remember to live below their means. Just about everyone wants to have a fancy house and trendy car, but not everyone can afford these luxuries at the desired time. In the foregoing situation, putting money aside for nice things and gradually saving is considerably wiser than making unaffordable purchases and being stuck with the devastating financial consequences.

Make Payments In Full and On Time

Another common error which often breeds bad credit is the failure to pay charges in full by the time they are due. Unfortunately, many individuals believe that they only have to make the minimum payments. Of course, this theory is incorrect. People who only make the minimum payments on their credit cards will face considerable interest charges on top of the funds that are already owed. In certain cases, interest charges have been known to outweigh original charges.

Interest should be avoided at all costs. It can take decades to completely pay off and moreover serve as metaphorical dead weight for anyone who is striving to improve their credit score. Some of the best ways people can keep track of the amounts owed to credit card lenders are by keeping track of payments and even calling the credit card company to find out how much more money needs to be put on the card to avoid incurring interest.

Look Into Getting A Secured Credit Card

A secured credit card is very much like a regular credit card, however, there are some differences. For starters, secured credit cards generally require customers to make deposits which amount to half or all of their credit limit. For instance, individuals who want a secured credit card with a limit of $1,000 will be mandated to make a $500 or $1,000 deposit before the card can be used. The purpose of the aforementioned payment is designed to cover customers who fail to make applicable credit card payments.

Many secured credit cards do come with application fees, annual fees, and processing fees. Individuals should be aware of the foregoing fees prior to obtaining a secured credit card.

A Final Word

Transforming bad credit into good credit is a step-by-step process which requires time, discipline, and patience. It may not occur in one day, but people who adhere to the aforementioned suggestions will inevitably see their credit scores improve with time.

Authored by Gabrielle Seunagal

How Can You Change That Low Credit Score?


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


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.


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!

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.






Learn 5 Reliable Ways To Improve Your Credit Score

Keeping your credit report tidy and organized is critical to your financial portfolio.  You don’t want to sweep financial errors under the rug as you would a dust bunny.  Instead, do your very best to pay off debt before it escalates and tarnishes your financial future.

improving your credit score

Have you been searching for reliable ways to improve your credit score? Today, your credit score is everything.  This impacts your ability to purchase a car, buy a house, get a credit card, apply for a loan and so very much more.  If you’ve made mistakes in the past and this has adversely affected your credit score, you’re not alone.  There are many Canadians across British Columbia who are struggling to rebuild their credit and diligently seeking reliable ways to improve their credit score.

You CAN improve your credit score with the right strategy.  One of the first ways Canadians can begin making a dent in debt and improving their FICO score is by minimizing their risks for being late paying ordinary bills.  That’s correct.  Late payments on bills can stack up against you badly, leaving you digging your way out of the hole.  So, establishing priorities and paying your bills on time will begin moving you in the right direction.

Canadians also need to acquire a recent credit report to view payment history and to discover what accounts might be negatively impacting their score.  It’s important to maintain and manage your credit once you begin to understand how it all works as well.  For instance, reviewing your credit report at least once a year, just to ensure the most accurate information is listed is absolutely necessary–specifically when you’re trying to repair poor credit history!

Now, it’s time for you to find the five primary ways you can enable yourself to start bringing that credit score up and improve your financial portfolio once and for all! Don’t continue to trip over your shoe-laces and ignore the importance of a clean financial history and don’t continue to live above your means! There are times you must learn to walk before you can run!


The Top 5 Reliable Ways To Improve Your Credit Score

Never forget the importance of ensuring their are no mistakes on that credit report as these can be extremely damaging.  42 million Canadians across British Columbia have errors on their reports, with approximately 12 million of these same Canadians suffering adverse credit scoring due to errors. You don’t want to be a part of these statistics, so please follow the advisement given earlier–it will make a difference.  You can also polish your damaged credit by following the very latest tips listed below, but do give it time. Your credit didn’t reach a state of disarray overnight so allow for patience and commit to improvement by making smart financial decisions daily.

  • Correct small discrepancies in your credit report before they become large
  • Pay attention to identity theft risks and ensure your identity is protected 
  • Pay credit card bills on time to build positive credit
  • Make certain corrections on your credit report are followed through with all three bureaus 
  • Limit credit inquiries on your report as most stay on for at least two years