Your Credit Score Matters
Does Your Credit Score Matter? In the business world, there is a saying, “If you can’t measure it, you can’t manage it.” The same is true for our personal lives. I think you’ll agree that when our finances are in order, life just flows a little easier. Even our relationships are more fulfilling. So how do we know if we're winning or losing with our finances? It all starts with our credit score. Your credit score is made up of these mathematical equations:
35% of your score is based your history of repayment.
30% is based on how you're utilizing your debt in relation to your credit history.
15% is calculated on how long you’ve had active credit accounts activated.
10% is determined by the type of accounts on your credit report such as credit cards, home loan, etc.
10% is based on how many inquiries you’ve had.
People That Have Low to Average Income Can Have Good Credit
Your good credit is a powerful tool that can put you in the financial driver's seat when it comes to money matters. Don’t ever believe the lie that you need lots of money to have good credit. Many people that have low to average incomes have excellent credit. In a nutshell, your credit is increased through responsible borrowing, and a solid repayment history.
You May Be Missing Out Because Of Your Credit Score
Not only are credit decisions made off your credit score, such as the purchase of a new car or home, likewise your credit is checked for renting an apartment or house. Leases are binding contracts in which a landlord conveys property for a specific period of time. Simply put, it’s a loan and that’s why landlords check your credit, not to mention your ability to pay. Wait, it doesn’t stop there. Utility companies are checking credit, as well as cell phone companies. If you have good credit, deposits aren’t required for utility companies; on the other hand, you may be walking around with a prepaid cell phone because you didn’t pass the credit challenge.
Your Credit Score Is The Driving Force
Even employers are running credit checks. You may ask yourself, “Why is a potential employer wanting to see my credit history? Isn’t that an invasion of my privacy?" Potential employers run credit for many reasons: First, you may be in a financially secure environment where you're trusted with money or secure information. Your credit will speak volumes on trust and responsibility. Second, it only stands to reason that employers may want to see if you have shown yourself to be financially responsible.
Note: Not all jobs make credit checks but the better-paying positions and higher paying jobs may, but never without your consent.
Good credit coupled with responsible spending is the driving force behind your finances. This is the caveat regarding our credit history, credit is never permanent. Good credit can go down and bad credit can go up. Good credit, as well as a good credit score, is in your hands. Consider it a challenge to yourself to build your credit.
Ontario alone has over 50% of total Canada payday loans in Canada. According to the 2007 directives issued by the federal government, provincial or state governments have to take decision regarding regulation of payday loan businesses. Such steps are needed for effectively managing these businesses. If you are looking to take a short term loan…
The Saskatchewan government is touting its new rules for the payday loans industry, saying they will make the loans more transparent and potentially reduce costs for consumers. The Payday Loans Act took effect on Jan. 1, said Roger Sobotkiewicz, director of the payday-loans division of the Saskatchewan Financial Services Commission. It is the first time…