10 ways to improve your credit and make smart …...2017/03/28 · 10 ways to improve your credit...

10 ways to improve your credit and make smart money decisions

say yes to a better financial future

This guide was developed with you in mind.

We know finances can be intimidating so

we found a way to break it down into bite

size pieces. We hope this will make it easy

for you to take small steps that will have a

big impact on your financial health. Start

with the tip that matters most to you, work

your way through the guide as it applies

to you and start taking control of your

financial future!

say to a better financial future

yes

table of contents

tip 1: get familiar with your credit report

tip 2: build a positive credit history

tip 3: get a credit card with a manageable limit

tip 4: set a budget

tip 5: prioritize your debt payoffs

tip 6: consider debt consolidation

tip 7: develop a habit of saving money

tip 8: make investments work for you

tip 9: stay on top of your taxes

tip 10: if you’re overwhelmed, help

is available

tip 1get familiar withyour credit report

Knowing your credit score is important, but understanding what your report means and how you can improve your score are critical to getting on a path to a better financial future.

here’s a checklist you can use to become a credit report expert:

• check your credit report yearly

• ensure your credit report is accurate – if you find errors, have them corrected

• know the diff erence between a “hard” and “soft” credit inquiry; a soft inquiry does not impact your score, but a hard inquiry can negatively impact your score

www.easyfi nancial.com/Tip1

bonus tip

scan this QR code for more info on your mobile device or visit the link below:

Credit monitoring service from easyfi nancial gives you unlimited credit score checks, debt analysis and more. Check it out here:

tip 2build a positive credit history

Where you can, set up full or partial automatic monthly bill payments from your online banking account. Set it and forget it!

bonus tip

One of the most important factors in a healthy credit score is your credit history. It’s never too late to start improving your payment habits where you can.

here are some key tips to get you on the right path:

• make payments on time

• pay bills twice a month when possible

• make payments in full whenever you can

• have various types of credit – personal loan, car loan and credit card

fi ll in the spaces below to keep track of your monthly payments:

rent/mortgage: $

phone: $

hydro/electricity: $

car insurance: $

: $

: $

A good rule of thumb is to keep your credit card balance at or below 30% of your limit.

A credit card is a very useful tool in establishing your credit and building credit history. Even if you only qualify for a secured credit card, it can still help you get back on track towards improving your credit score. Either way, it’s important that you use any credit card effectively to help build the right kind of credit history.

here are some tips that can help:

• carry a maximum of two credit cards at a time

• make payments on time and in full

• if you can only get a secured credit card (most banks offer them), shop around to see which one will work best for you

• don’t accept a credit limit that is too large for you to pay off in full

• increase your credit limit slowly over time, accepting only part of the increase is a good option

bonus tip

tip 3get a credit card with a manageable credit limit

tip 4set a budget


A budget should be an integral part of your overall plan to improve your financial future. Start simple: calculate your total monthly income and then add up your total monthly expenses (e.g., food, bills, rent). Use these two outputs to set a monthly budget that works for you.

your budget should help you achieve your financial goals. use the spaces below to set those goals:

my monthly income is $

my goal is to save $

to put towards

to reach this goal, I will put away $ per week/month/year (circle your option)

bonus tip

scan this QR code to read the article on your mobile device or visit the link below:

To check out more budget-friendly ideas:

tip 5prioritize your debt payoff s

When you have multiple loans on the go, such as student loans, car loans or even credit card debt, it makes sense to prioritize how you plan to pay off each one.

here are the factors you should consider to decide which debts to pay off fi rst:

• review the interest rates for each of your loans or debts and pay off the ones with the highest interest rates fi rst to save on interest charges

• review the principal amounts you owe, which will help you focus on the term of the loan or the time to pay back

• decide if the Debt Snowball Method or the Debt Avalanche Method is the best prioritization plan for you (see bonus tip below)


bonus tip


To learn about these two debt prioritization methods:

tip 6consider debt consolidation

If you have gotten off track and have multiple outstanding debts or loans that you need to address, you may want to consider a personal installment loan to consolidate your debt.

here are some advantages of debt consolidation:

• reduces multiple payments into one simple payment (easing risk of late payments)

• can help reduce interest rates overall, enabling you to pay down debt faster

• can help improve your credit score since interest rate payments may be lowered and fewer payments are missed

scan this QR code to view the video on your mobile device or visit the link below: bonus

tip


Check out a quick Money Minute video on debt consolidation:

tip 7develop a habit of saving money

Saving money is never easy; by the time bills or rent is paid, there’s not much left over. But saving money becomes much easier when you develop a habit of doing it. Once you start to save regularly even in small amounts it becomes part of your monthly routine and can add up quickly!

start your saving habits from the guidelines below:

• open a savings account, so you will have a separate account for savings only

• review your monthly expenses (see tip 2) to see where you can cut costs, and then transfer that money into your savings account

• set up a monthly pre-authorized fund transfer from your online banking account to your savings account (grow your savings automatically!)

Don’t be afraid to call your insurance or cell phone provider to ask them how you can save money on these services. They can review your account with you and see where you could cut costs.

bonus tip

tip 8make investments work for you


bonus tip

The topic of investing is not as complicated as you may think. While developing a savings habit (see tip 7) is a great start, investing can help you maximize the growth of those savings. Investing can be easier than you think.

here are some common misconceptions about getting started with investing:

• you need lots of money to invest – you can get started with a modest amount of money and many mutual funds have minimum commitments at the $500 level

• investing money is too risky – while some investments can be risky, there are many low risk investments that can provide good returns

• you need investment advice from a fi nancial advisor – most major banks have self-directed online investing platforms, which can be great sources for learning more about what types of investments can work for you


Check out more information on getting started with investing below:

Explore if starting or contributing to an RRSP or a TFSA is right for you – both can be great investing vehicles (see tip 8) to save on taxes in the short or long term.

Your tax filing is your opportunity to claim several government benefits that you might qualify for. This can mean a tax refund, which can mean more money for you to spend, save or invest.

here are a few tips to help you stay on top of your taxes:

• the earlier you file during tax season, the quicker you can receive any tax refunds you may be owed

• know which benefits you qualify for – benefits like the Canada child benefit or the GST/HST tax credit can help you maximize your return if you qualify, but there are many items, like tuition and medical expenses that you can claim to help you save on tax

• file your taxes yourself – use a tax filing product that can help you file online on your own (it will help explain how to file and even what benefits you may be able to claim)

bonus tip

tip 9stay on top of your taxes


tip 10if you’re overwhelmed, help is available

Life happens. If you find yourself with unmanageable debt, there are options other than bankruptcy that could work for you. A consumer proposal or other debt relief programs can help, and potentially have less of an impact on your credit report.

here are the main areas of focus if you need to rebuild your credit upon emerging from a debt relief solution:

• budget

• learn from your experience

• check your credit report and report any errors

• get new credit

• increase your credit limit after a few months

www.easyfinancial.com/Tip10

bonus tip

Check out more information on rebuilding your credit:

to recap:a brief summary

familiarized myself with credit reports

begun building a positive credit history

applied for a credit card that’s best suited for me

set a budget that works for me

prioritized my debts to pay

consolidated any debt that may have gotten off track

developed money saving habits

made investments that work for me

prepared for tax season

explored my options if faced with unmanageable debt

Take these 10 easy tips and start making a difference today. Keep track of your progress by checking off the boxes below. I have...

It’s time to put your new financial knowledge to use. The tips you’ve learned from this guide will set you on a path to a better financial future. If you need help along the way, come in and let’s talk.

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10 ways to improve your credit and make smart …...2017/03/28 · 10 ways to improve your credit...

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