Gil...You sir, are pretty close to describing my scenario. There are many more of us now in the same situation.
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Gil...You sir, are pretty close to describing my scenario. There are many more of us now in the same situation.
Solutions?
I doubt anyone knows. Though I did like PPs thoughts on reducing red tape, fast tracking infracture and projects without throwing additional hundreds of millions or billions at them. I'm sure there's far more, question is will there be political will power and or the stomach. Dont forget we now have tens of billions in additional debt hanging over our heads.....
Credit cards:
Your actually better off leaving the balance ( if its under 30%) and at least until the statement date. If you pay them off, the balance reports as 0.00 and the banks assume you aren't using them. No indication if you are managing your credit well.
You'd be surprised how many seniors I see coming in for car loans Gilroy. With little but CPP or some other, if their credit isn't really good....... Want to guess what the interest rates are? Well its nothing for a $15,000 car to become a $30,000 car by the time its paid for. Worst rate I've seen for anyone was 34% and they didn't have a bankruptcy or repo in their history. Though did have a couple previous write offs.
Yep, if I'm still employed next summer, I expect to be crazy busy...
Working with another guy that wants a truck for his business. He's Irish, fairly new to Canada. While his history is "good", it's what's known as thin. He's paid cash for most things most of his life, so the banks don't know where to peg him ( its the same with young people). Is he risky, is he not? No history, no way to know. The best rate he'll get is 12%. Over 6 years and say 30k financed, thats about 19,000 in interest.
Banks have you nine ways to Sunday.
https://uploads.tapatalk-cdn.com/202...481d0cf65b.jpg
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Whoops.
JBen on the credit cards that is not correct, I pay my off twice a month when I get paid and no it doesn't show up like your not using them.
Considering I worked for the bank for a short time and my whole family does work for the banks (CIBC, I personally bank at Scotia). The faster you pay things off it builds your score. Even today if you have a good credit rating and you are not borrowing beyond your means it is not hard to get a loan if you have a decent credit rating. Even when I was quite poor I was able to get the best rates.
Quote:
Originally Posted by JBen
Great white. We’re you a “teller” Or someone in credit?
How often have you read an Equifax report or trans union?
Equifax reports do NOT show your transactions. It shows the limit, and balance. The dozens or hundreds of buy/pay you do...
The way you are using CCs the balance will be 0.00. Doing virtually Jack for your score. Might as well get a card a never use it.
Could also mention that Revolving credit such as CCs show as R1 to R9. With nine being the worst. How often your late, delinquent, etc etc. in other words they don’t really care how good you are. What they care about is how bad you are....
Curious GW.
How many scores are there that lenders look at? I’d bet you think 1. My “credit score”.
nope, there’s 3. Though lenders really only care about 2 of them.
Lol interest calc. Thanks.
Knowing this place I should have actually grabbed my calc. 6 years x 3,600? Took .5 a second and longer to type it..... Yes I’m quite aware the principal depreciates. Illustrative post.
But people always have to find bones. :). But yes thanks.
If I wasn’t breaking all kinds of privacy laws I’d actually show a report and what lenders look at.
and for the record. Equifax is extremely secretive with respect to their proprietary algorithms.
My Dad was the Top CIBC in NB, he also did the auditing for Equifax and most of the big banks in NB, NS, NFLD. Essentially he was the top person. He retired 20 years ago. My whole family works for the bank system. About 150 years between them, yeah I know enough with a quick phone call.
Quote:
Originally Posted by JBen
There’s a fair bit out there.
But as you can see. The government recommends 35% and make your payment.
On time.
With credit cards thats 30 days from the statement date.
Day 1 you $100 on
Day 2 you pay it off.
Day 15 the statement reports 0.00 balance. That’s all Equifax sees a balance of zero for months/years....
Day 1 you put $100 on
Day 15 the statement report a balance of $100
Day 16 to 36 you pay it off.
Wash/rinse/repeat.
https://www.canada.ca/en/financial-c...dit-score.html
But there's a caveat. After a certain period of time, your credit card issuer may close the account for inactivity if the card isn’t used occasionally – which may negatively impact credit scores. Using your credit card for small purchases and then paying the balance in full each month will generate positive payment behavior, however, and will keep the card active”
https://www.equifax.com/personal/edu...credit-scores/ card
Decided to add more. It’s off topic in ways, but these days, so important. So very important.
GW, a bit of an apology. When I “teller” that wasn’t meant as any kind of slight. But as banking is a huge industry. I myself have spent my whole life in “banking” and finance. I’ve learned a couple things since starting in this arm...
Hardly a week go by when I’m not surprised by something. Some weeks, that’s people being approved despite horrible “scores” and brankruptcies, or repos. While others get denied.
I won’t get into specifics but last week someone was denied by 7 institutions due to their postal code. One bank rep even said. “To be honest, we didn’t even look at their bureau, their postal code was enough”...
That surprised the hell out of me....At first. Then it made perfect sense.
I would encourage anyone and everyone to go to Equifax and check your score. Beware, what you will see is not what lenders see. Be aware also of free services like Credit Karma. For lack of better words they “guess”. It gets you the ballpark of your “score”. Can’t tell you how many people when asked “do you know what your score is like?” And they say sure I checked credit karma a couple months ago. I’m around 650.
Sorry your a 575
Banks ( lenders) like to see a mix of credit. The most common being R, O, I.
R1, O1, I1
Pays on time. Meaning, within the allotted allowed time.
Page 10
https://assets.equifax.com/assets/ca...user_guide.pdf
Still chuckling about the interest calc. :)
Guys lets face it, by the banks standards if you have a pulse you can get approved for any mortgage / loan you want...the money supply is so lose and our government just keeps printing it this is all contributing to pricing running up accross the board, from bread to cars to houses.
Id like to see 5-6% interest rates, and if some people get caught over-extended then so be it.... Id like to be able to retire and invest my hard earned money in a GIC and earn a decent rate, not the measly 1% theyre offering now - its sad were almost forcing retirees to put their money in the over-inflated stock market to earn any sort of return...we need higher rates, and a competent government as well, no question about it.