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Everybody
wants you to borrow money - from the departments stores, free credit
at the furniture or hardware store or the gas station - all adding
to your overall debt.
Credit
can be a valuable tool if you understand it, and have determined
that you can afford it, and have a plan. Sorting out your needs
and wants is sometimes the hardest part...
We
have provided "Giving yourself credit
- Credit control tips" to alert you of some of the dangers.
Understanding Credit provides you with
an in-depth look a credit in a Q and A format.
Common
mistakes - Money management lists strategies of how successful
people manage their finances, while avoiding in common pitfalls
and mistakes.
| Useful
debt management tools |
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This
Total
debt worksheet calculator will help you determine the amount
of debt you currently owe, in order to assess how well you are managing
it. This will also be a good indicator of how well equipped you
are to handle additional debt.
The Assets
& Liabilities Worksheets tools help you understand your
financial position and are a great way to take control your finances.
Download the handy worksheet entitled Net
Worth Calculator is one such tool that has been designed to
help make your financial planning as painless as possible. Made
up of six separate sections, it takes you through the steps to calculate
your net worth. Another tool is the Compact
Net Income calculator.
Strategies
Credit Card Costs Calculator: If you're one of the few people
who pay their credit card balances in full each month, this tool
will identify the credit cards which carry no annual fee. But, if
you normally carry a balance, this tool will tell you just how much
you're paying for that card. It is estimated that over eight million
Canadians do not pay their credit card bills in full at the end
of each month.
| Some
do's and don'ts of having a credit card |
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Do's
- Pay
off the balance each month
- Shop
around for competitive credit card interest rates
- Keep
a record of any telephone and Internet transactions and keep receipts
until your statement arrive
- Be
aware of your credit limit.
- Use
a Oil company credit card for gas - you're limiting the possibility
of fraud to its limits and use.
- Remember
to immediately cancel to card if lost - you can have it canceled
on a temporary basis and reactivated later.
Don't
- Don't
be tempted to sign up for a card purely on the basis of the loyalty
or rewards scheme
- Don't
blindly use store issued credit cards because its offering 12
months interest fee - beware the interest rate may bite you if
the debt is left outstanding.
- Give
you credit card number as a form of ID or to somebody unless you're
buying or making a reservation.
- Don't
be tempted to increase your credit limit and build up even greater
debts
- Don't
make too many cash withdrawals from a credit card, as charges
may be higher for these direct transactions.
| The
role of a credit bureau |
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A credit
bureau is simply a private business that collects and disseminates
information relevant to the credit worthiness of both individuals
and businesses. Typically the credit bureau checks the public records
to see if the credit applicant had filed for bankruptcy, court notices
and lien records. Credit bureaus gather and share information from
other credit bureaus and by verifying employment and banking information.
Credit Bureaus sell and receive information from the credit providers
(banks, trust and loan firms) who in turn pay a fee for the service.
Most
credit reporting firms use standardized forms and terms of reference.
The credit report would contain a history of who you have borrowed
from, how much, if the payments where paid on time, if consistent
or erratic. From the information on hand, the bureau assigns a credit
score or overall rating, so the subscribing credit provider can
make up their own mind as to the loan application.
Check
out if the Credit bureau has the information right?
Since
the credit report contains a summary of your financial activities,
its a good idea to review the information that's being passed around
about you.
To
find out how to obtain a copy of your credit bureau report, you
can ask the credit bureau directly.
Equifax
Canada 1-800-465-7166
or
consumer.relations@equifax.ca
the website www.equifax.ca
Trans-Union
Canada 1-800-663-9980
or marketing@tuc.ca
the website www.tuc.ca
| Comparing
credit card rates, fees and calculator,
personal and car loans rates |
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