Mortgage into a tool for wealth creation
Hello, I’m Kelly Wilson of the Wilson Team of mortgage professionals. My colleagues and I want to help
you finance the property you want, while teaching you how to get the most from your real estate
investment dollar. It may sound complicated, but it’s not.
A mortgage is a tool that allows you to build financial security for yourself and your family. I’ve done it
myself. I bought my first property at 21 as a way of deleting my biggest expense – housing -- from my
balance sheet. I rented out part of the property and that money paid the mortgage while I saved for
another down payment. Investing in property has put me in a position to take care of my family in good
times and bad. It’s what we all dream of doing, but we may not know how to go about it.
That’s why people turn to the Wilson Team. We’re passionate about helping our clients find the path to
financial security, just as we have personally. We teach you to look at mortgages differently.
A mortgage should be a tool to increase wealth, not a liability that makes you shudder. We show you
how to invest in real estate, not mortgages, so you’ll have the financial means to cope with any life crisis
that may come your way. As parents and children ourselves, we understand how important that security
can be.
Creating wealth today requires thinking outside the box and we help you do that. Take David, for
example. He came to me when his mortgage was due for renewal. He and his fiancée planned to save
for two years so they would have enough money to buy another house. I asked him what he would do if
I could show him how to free up $900 a month, improve his cash flow and give him five per cent to allow
him to purchase another home now. We lumped his mortgage, car payment and student loan together,
refinanced and freed up enough cash for him to rent out his current property and put the down
payment on another. Not traditional, perhaps, but effective.
Here at the Wilson Team, we draw on our knowledge from real estate, banking and investing to show
you how to uncover money you didn’t even know you had so you can start investing it. Our team of
experts can help you create a sound plan tailored to your goals and risk tolerances and lead you to
financial freedom.
The Wilson Team is here for you and your family. Turn to us and turn your mortgage into a tool for
wealth creation.
Quelques conseils pour réparer un crédit endommagé
Malheureusement, de nombreux emprunteurs oublient l’importance d’avoir un bon crédit et ils ce retrouvent souvent refusé un emprunt grâce à leur inattention. Heureusement, avec un peu de discipline et de dévouement, ils peuvent se remettre sur la bonne voie. Chez l’équipe Wilson nous pouvons vous aider avec de bons avis pour garder une bonne cote de crédit.
Frais supplémentaires, plus grosses mises de fond ou simplement des refus, sont des conséquence communes faisant face aux emprunteurs avec des pauvres et même moyenne cote de crédit.. Selon le président de CanWise Financial, James Laird, il est impératif que les clients apprennent les bases de paiements responsables.
«S'il ne s'agit pas d'une fiche de faillite ni d'une proposition de consommateur, nous voyons généralement des emprunteurs dont le solde est supérieur à leur limite. Par conséquent, même si c'est quelque peu contre-intuitif, obtenez une limite plus élevée, car cela améliorera votre pointage de crédit si vos habitudes de consommation ne changent pas, " il a ajouté. "Si deux personnes dépensent $2000.00 et la première personne à une limite de $10,000.00 cette personne verra son score augmenter. En même temps si l’autre personne a une limite de $2000.00 il verra sont score détériorer rapidement.
En parlant de contre-intuitif, ont conseille aux clients qui tentent de réhabiliter leur crédit de ne pas effectuer de paiement avant la fin du mois. Si ont paye trop tôt dans le mois, ceci es vu comme si l’argent n’avait jamais été dû donc ceci ne vous aide pas.
Parfois, nous voyons les gens les plus organisées rembourser leur carte de crédit juste avant la fin du mois, et dans ce cas, les sociétés de crédit cesseront de faire rapport au bureau. Si vous le payez le même mois que vous avez acheté, c’est comme si vous ne faite pas de paiement ou d’achat. Laissez le mois se terminer et effectuez votre paiement pendant la période sans intérêt, comme dans les 10 jours ou peu importe ce que vous avez. Il est important de démontrer que vous devez un peu d’argent mais que vous êtes aussi diligent pour effectuer des paiements.
Dans le cas des faillis, leurs facilités de crédit auront été fermées et il est recommandé donc il est important de commencer avec du nouveau crédit le plus vite possible afin que la réhabilitation puisse commencer.
Il est important d’obtenir de nouveaux moyens de crédit le plus rapidement possible après avoir eu un problème. Nous recommandons que, si une personne a fait faillite ou une proposition de consommateur, à obtenir une visa prépayé afin de pouvoir rebâtir le crédit car même si prépayé la carte est rapporté au bureau de crédit.
Plusieurs conseillers financiers recommandent à leurs clients qui ont un crédit tordu, d’utiliser leur carte prépayée de 50 à 70%.
"Si le taux atteint 90% ou plus, cela montre à la banque que votre capacité à rembourser la dette en cours est compromise, car vous êtes sur le point de risquer de manquer un paiement ou de ne pas respecter vos obligations mensuelles."
Si vous prévoyez manquer un paiement ou autre problème. Il est primordial de faire un appel a votre créditeur et dire:" Je suis en retard et je veux me rattrapé, alors pouvons-nous trouver un plan de remboursement? Ceci est extrêmement efficace. C’est dans l’intérêt des créditeurs de travailler avec vous car ils ne veulent pas que vous fassiez défaut. Nous recommandons de toujours faire face à vous créditeurs et vous allez réaliser que les choses iront beaucoup mieux.
Tags : Dette, planification financière, premier acheteur, conseils hypothécaires, bureau de crédit, score de crédit, Intérêt hypothèque
Home Buying for Millenials
Home buying for millenials. New study finds that this increasingly important home buying cohort struggles to enter the real estate market in Canada.
Lack of emergency funds
Nearly half of Canadian home owners lack a sufficient emergency fund. 40% have difficulty meeting ownership costs, according to a report by the Manulife Bank of Canada.
“It’s undoubtedly stressful living paycheque-to-paycheque.” Rick Lunny, president and CEO of Manulife Bank of Canada, said. “If you don’t have extra cash at the end of the month, it’s very difficult to build a rainy-day account. For those who find themselves in this situation – a good place to start is working with an advisor to create a budget. Many people are surprised at how much of their money is going toward things that they don’t consider that important.”
Role of real estate agents
Agents can also play a part in helping clients better prepare for the home buying process by schooling them on all the extra expenses that come along with realizing the home ownership dream.
According to the report, the average Canadian home owner has a mortgage of $174,000 in mortgage debt and more than a quarter of their income goes toward making those payments. Nearly 30% say they spend 30% of their net income on those payments.
Financial buffer
“A financial buffer is an important part of a financial plan,” Lunny said. “A high-interest savings account is a good option. Or, if you’ve got a home equity line of credit, you could use your savings to reduce your debt and save interest - and still have access to that money if an emergency arises.”
The study also points to the possible ignorance of Millenials around the current state of mortgage which, despite recent increases, remain at historical lows.
Despite this, one-third of Millenials say mortgage rates are too high.
Home Buying for Millenials: If you are a first time home buyer or just thinking to organize your finances contact Kelly Wilson at 613 695-9250. I would be more than glad to sit down with you to help you purchase your first home.
Source: Repmag.ca
Never miss great tax-time freebies!
Never miss great tax-time freebies!
Here are two tax-time advantages available for upcoming first-time buyers and those who took the plunge last year.
- The 90-day boost. If you’re buying your first home now and it’ll be at least 90 days before your move, let’s talk. The Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available for your purchase. First, make as big an RRSP contribution as you can – up to your contribution limit or $25,000 per person. You can even use your downpayment savings for this. Big RRSP contribution means a great 2014 refund. Then, after 90 days, you can go back into your RRSP and redeem your contribution under the HBP program. So you’ve got your original downpayment funds back PLUS a nice fat tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership!
- $750 for first-time buyers. Don’t leave money on the table if you bought your first home last year! You may be able to take advantage of the Home Buyers Tax Credit (HBTC) when you file your tax return. The $5,000 non-refundable HBTC provides up to $750 in federal tax relief. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. For more information, visit the Action Plan website at www.actionplan.gc.ca/en/initiative/first-time-home-buyers-tax-credit.
Buying a home in 2017?
Buying a home in 2017? Unfortunately there has been some recent changes in Canada. Make sure to plan well ahead of your search. Things got a bit more restrictive since October 17th 2016. Here’s how to prepare for the purchase.
If you’re thinking about buying a home in 2017, October to December is the perfect time to “warm up” for the house hunt so you can hit the ground running in the new year.
Here is a great list about what prospective home buyers should do to ready themselves for buying a home. From organizing your finances to save money to finding a real estate agent and mortgage lender, there is plenty to keep you busy!
1. Check your credit score
A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better. Good credit scores are very important when obtaining a mortgage. Typically, you’ll get the best interest rate on a loan if your score is 740 and above. So a higher credit score should help you getting a lower mortgage rate. If your credit score falls short, get busy repairing it. Correct any errors that might be on your report, start paying all your bills on time, and get your credit limit raised. Note, though, that you shouldn’t max out your card each month. It’s best to use 30% or less of your total available credit. If you would like to know your credit score let me know and I'd be glad to find it for you!
2. Don’t open new credit cards
It can be difficult to turn down those zero interest rate credit card offers you receive in the mail or see on the internet. Tempting as saving at checkout can be, opening new credit may hurt your chances of getting a mortgage, or at least of getting the best rate on a loan. Do not create another line of credit by getting a new credit card. What could save you a few dollars now could cost you far more in the long run if your mortgage payments will be higher. Use cash to purchase Christmas gifts instead of your credit card. Try to pay it off monthly and do not carry a balance. This will send the right message to the mortgage lenders when the time comes to apply for a mortgage.
3. Suggest financial gifts for the holidays
Besides the mortgage loan, you’ll need a sizable amount of cash to buy a house. There’s the down payment to consider, closing costs, and moving costs. You should also set aside money for unexpected repairs and costs, says Brian Betzler, regional sales manager at TD Bank. Not being prepared “is probably why nearly half of millennials incurred up to $5,000 in unexpected costs during the mortgage process, according to a recent TD survey,” he says.
A potential solution? Bulk up that emergency fund. “Instead of getting gifts for the holidays, [prospective home buyers] can suggest cash instead that will be put toward their home,” says Paul Sian, a Kentucky and Ohio agent. And remember, you might be getting some money back after you file your tax return. Don’t blow it on vacation. “A tax refund is a great way to add to your cash reserves for a down payment,” says David Hosterman, branch manager of Castle & Cooke Mortgage in Colorado.
4. Interview potential real estate agents
If your neighbor, relative, or friend of a friend happens to know (or is) a real estate agent, that’s great. This person might be the perfect agent for you. But you owe it to yourself to shop around. “Look for a real estate agent that is knowledgeable, good, integral, and can assist you in reaching the goal of home ownership,” says Chantay Bridges, a Los Angeles, CA, real estate agent. “Make sure they are not a novice, new, or just unaware of how to do a specific transaction.” The end of the year is usually a slow time for agents, so chances are, they’ll be more accommodating to making an appointment on your schedule.
5. Keep tabs on interest rates
If you hear that interest rates are at historic lows or that interest rates are on the rise, you should not assume that you can get the rock-bottom rate. Not everyone gets the same interest rate on a mortgage loan. It depends on your financial picture and on the lender you choose. “Everyone knows that home prices are, at least to some extent, negotiable, but we find loans to be the same,” says Warren Ward, CFP with WWA Planning & Investments. He advises that home buyers shop around for the lowest interest rates. Note that closing costs can vary too, so discuss with your real estate agent ways to keep yours down. You can always save some money by shopping around for movers, lawyers, appliance sales, home inspectors and whatever else you may need when moving to your new home.
6. Find a mortgage lender
Before you even start looking for a home (and yes, we even mean browsing online listings), look for a mortgage lender to find out if you can afford to buy a home. If you can’t right now, there’s no use torturing yourself by finding your dream home that’s just out of reach. But how do you find a lender? Start with your own bank. Then ask your real estate agent for the some mortgage brokers. Compare these offers. Look at what they offer, costs, points, and how long to close. Once you know how much home you can afford, perform your home search based on your pre-approval amount or less.
7. Get preapproved
When a lender gives your financials the once-over and pre-approves you for a mortgage, you’ll be able to show sellers that you really can buy their house. But how do you get pre-approved? By preparing a few documents, which you can do several months in advance of the actual purchase. Here are some of the things you need to buy a house.
Tax returns for the past two years
T4/T4A forms for the past two years
Paycheck stubs from the past few months
Proof of mortgage or rent payments for the past year
A list of all your debts, including credit cards, student loans, auto loans, and alimony
A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts
DO NOT DO THESE if possible, before your home purchase: change jobs, make big purchases on credit (car, furniture, travel etc) and miss payments.
Buying a home in 2017? How are you getting ready? Send Kelly Wilson an email or call me 613 695-9250
Why invest in condos, town homes or multi-family properties
Why invest in condos, town homes or multi-family properties: For the purpose of this article lets consider a multifamily type dwelling — a condo, duplex, or townhouse — and they can be a smart choice.
With interest rates at historic lows and a strong rental market in Ottawa, people are investing in real estate. Many investors automatically think “single-family home” when they set out to buy a property, and while this may be a smart move in some cities, there are definite advantages to buying multifamily real estate that should not be overlooked.
Here are five tips from real estate pros on why invest in multi-family housing may be a smart choice:
1. There’s less maintenance with condos and townhouses
If you’re buying a property with a homeowners’ or condo association (HOA) that takes care of the exterior (roof, windows etc) you’ll have fewer landlord responsibilities on your plate. With most condos, everything outside your own walls is typically considered a common area, which your HOA takes care of using the dues you pay. These common areas usually include the landscaping around the building, the roof, parking garage, and amenities such as a pool and clubhouse.
Remember to factor in the monthly condo fees dues before you invest: Dues in condo and townhouse communities could run you hundreds of dollars per month. Certain condos have restrictions on renting out the units. Make sure to have your Ottawa real estate agent and your real estate lawyer analyze the condo document before purchase.
2. You can save on taxes and insurance with a duplex
Think of buying a duplex or triplex as buying a potential deal. A duplex is really one structure. But one that has been divided into two apartments, either side by side or upstairs/downstairs. As such, when you buy a duplex as an investment property, you can rent out one of the units and live in the other. Alternatively, you can rent out both units.
3. It’s easier to get started in investing with a duplex
You typically need a bigger down payment to buy investment property than you do when buying a property you will live in. For mortgage advice on renal properties in Ottawa contact an experienced Ottawa mortgage broker. A great mortgage expert can help obtain that all-important first mortgage on an income property. If you purchase a duplex or triplex you may qualify it differently if you live in one of the units.
4. You could make more money with a multifamily unit
The potential to earn more money — otherwise known as having “greater cash flow” in investor lingo — can be greater when you buy multifamily homes for sale. “The rent-to-purchase price ratio is almost always much better with multi-unit investments,” says Casey Fleming, author of The Loan Guide: How to Get the Best Possible Mortgage. They can provide cash flow better than a similarly priced single-family house.
5. You’re looking for retirement income
Baby boomers have always broken new ground, so as this group approaches (or is in) their retirement years, they’re redefining the way they live. Many boomers choose to live in age-55-plus retirement communities. Others prefer to rent. So a shared-housing arrangement can present a great investment opportunity for homeowners. Empty nesters who have plenty of spare bedrooms can rent out one or all of them to fellow retirees. If you do this, make sure you have a lease and specify house rules. Such as a laundry schedule, which food will be shared, and who pays for which utilities.
Why invest in condos, townhomes or multi-family properties: For more specific info on how to obtain financing for income properties contact the Wilson Team.
Ottawa real estate market September
Ottawa real estate market September: Ottawa real estate agents sold 1,371 residential properties in September through the Board’s Multiple Listing Service® System, compared with 1,241 in September 2015, an increase of 10.5 per cent. The five-year average for September sales is 1,171.
“Again this month, we have broken the record for residential and condominium units sold, with 200 more units sold than the five-year average for September sales,” says Shane Silva, President of the Ottawa Real Estate Board. “With average sale prices remaining virtually unchanged since the beginning of the year, this could be an indication that prices have adjusted to market expectations and sales have rebounded as a result.”
September’s sales included 269 in the condominium property class, and 1,102 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases, and timeshares. The residential property class includes all other residential properties.
“Units listed in both residential and condominium property classes continue to decline,” indicates Silva. “From 2,076 listed in September 2015 to 1,822 listed in September 2016 for residential properties, and from 637 listed in September 2015 to 588 listed in September 2016 for condominium sales. With fewer listings coming on to the market, combined with recent higher unit sales, overall inventory is declining. The basic economics of supply and demand at play will continue to have an impact on the Ottawa resale market.”
The average sale price of a residential-class property sold in September in the Ottawa area was $383,793 a decrease of 0.1 per cent over September 2015. The average sale price for a condominium-class property was $252,136, a decrease of two per cent over September 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
“The hottest segments in our market for September continue to be two-storey and bungalow residential homes in the $300,000 to $400,000 price range, followed by one-level and two-storey condos in the $200,000 to $300,000 and the $100,000 to $200,000 price range” says Silva. “In addition to residential and condominium sales, OREB Members have assisted clients with renting almost 2,500 properties since the beginning of the year.”
Selling your home on your own? Do not reveal these to Buyers!
Selling your home on your own? Do not reveal these to Buyers! Selling a home privately can be challenging but it can also be rewarding. One thing is guaranteed: if you do not work with a real estate agent you will have to answer a lot of questions directly from buyers and buyer's real estate agents.
Regardless of whether an interested buyer visits your home alone or with an agent, you don’t want to reveal information that could put you in a compromising situation when offer time rolls around.
Here are five things you shouldn’t discuss if you want to ensure a smooth sale that works to your advantage:
1. Your Motivation for selling
Motivation is often the key in negotiations. Revealing too much information as to why you’re selling your home may give buyers the impression that you’re desperate to leave your property behind. On the other hand it could also give eager buyers the impression that you are not really motivated to sell. How best to respond? When asked why you’re selling, keep your response vague and short. A neutral answer such as 'down sizing' may be a good idea.
2. Things you planned but never did
Always wanted to renovate the kitchen but never got around to it? That’s not the type of information you want to share with home buyers. Revealing a list of upgrades and repairs, that you wanted to do but never got around to, gives the impression that the home isn’t move-in ready and that there are many issues with the home that could require costly renovations.
3. The number of showings you’ve had
It’s likely potential buyers will ask you how many people have visited your home. This is their way of determining how many interested buyers have come through your doors. While it may be tempting to provide them with a high number, don’t. Since the amount of people who have visited your home doesn’t directly influence whether or not a potential buyer will make an offer, you’re better off remaining vague and saying you’ve had “a few visits.”
4. Number of interested buyers
Revealing that there are a slew of interested buyers may deter someone from making an offer simply because they feel the competition is too high. On the other hand, saying that there has been no interest in your property could create doubt and cause a potential buyer them to believe that there is something wrong with the home. Unless you’ve received a formal offer, you’re not obliged to discuss how many buyers have shown interest in your home.
5. Verbal negotiations
As a seller you could be liable for verbally negotiating and sharing information. Should a potential buyer ask you if you are willing to negotiate, be very cautious with your response. Only communicate your intentions (and follow through) in writing. An offer must be in writing to form an agreement.
Selling your home on your own? Do not reveal these to Buyers! If you have any questions or comments contact Kelly Wilson.
Canadian Home Prices August 2016
Canadian home prices August 2016 are up according to the Teranet-National Bank Housing Index.
HOME PRICES UP 1.5% IN AUGUST
In August, the Teranet–National Bank National Composite House Price Index™ was up 1.5% from the previous month, the third-largest August rise since the Index series began in 1999. However, the advance was not very broad-based; prices were up in seven of the 11 metropolitan markets surveyed.
Best performing markets
Monthly gains exceeded that of the countrywide index in the four markets that have been driving it in recent months: Toronto (2.8%), Victoria (2.2%), Hamilton (2.0%) and Vancouver (1.7%). Prices were also up in Ottawa-Gatineau (0.8%), Halifax (0.7%) and Edmonton (0.4%).
Slower markets
Prices were down from the month before in Winnipeg (−0.1%), Calgary (−0.2%), Montreal (−0.8%) and Quebec City (−1.9%).
Vancouver and Toronto
For Vancouver it was the 20th straight month without a decline, though it was the first in seven months with a rise of less than 2%. For Toronto it was the seventh consecutive gain, with a marked acceleration in the last three months to an average 3.1% monthly. The Toronto index topped 200 for the first time in August, signalling that prices there have more than doubled since June 2005.
Winnipeg passed that milestone last June, Vancouver in September 2015. Prices in Hamilton have risen in each of the last six months, prices in Victoria and Ottawa-Gatineau in each of the last five months. In the latter market, prices topped the previous record set in August 2014. August price declines ended runs of seven monthly gains in Winnipeg and five monthly gains in Montreal.
Canadian regions
In August, the composite index was up 11.4% from a year earlier, for a seventh consecutive month of acceleration and the largest 12-month increase since July 2010. This rise was led by Vancouver (25.8% - the largest increase on record), Victoria (17.5%), Toronto (14.6%) and Hamilton (13.0%). The 12-month increases were much smaller in Winnipeg (3.1%), Halifax (1.1%), Ottawa-Gatineau (1.0%) and Montreal (0.6%). Prices were down from a year earlier in Edmonton (−0.3%), Quebec City (−3.2%) and Calgary (−4.5%).
6 credit card mistakes you should avoid
Maintain a healthy score by avoiding these common credit pitfalls.
Whether you’re looking to rent an apartment or start a cellphone contract, your credit score matters. Lenders and third parties look to your score to indicate if you’re a risky borrower, and it can determine whether you’re able to get application approval for that Nashville, TN, apartment — or whether you’ll be living in Mom and Dad’s basement for another year.
Clearly, your credit score is an important component of your financial health — and your credit card habits and history are major contributors to this score. But the average credit score is a lukewarm 667, according to a recent Experian study. If you’re looking to improve your credit score — or simply maintain the score you have — make sure to avoid these six credit card pitfalls
1. Racking up a high credit card balance
Even if you’re paying off your credit card bills in full each month, you may still be hurting your score by how much you’re spending. Your debt-to-credit utilization ratio — how much debt you’ve accumulated on your credit cards divided by the credit limit on the sum of your accounts — comprises 30% of your credit score. If you want a good credit score, you need to keep your credit utilization ratio relatively low. A good rule of thumb: “Shoot to keep your balance to no more than 10% of your credit limits,” says independent credit expert John Ulzheimer.
2. Developing a habit of making late payments
Payment history comprises a whopping 35% of your score. Translation: Even missing just one credit card payment can substantially hurt you. Fortunately, there are some steps you can take to prevent this. One option is to set up automatic bill pay by linking your credit card to a checking account. Alternatively, you can set up text message or email alerts to remind you when a payment is due. Still paying by snail mail? “Allow plenty of time for the bill to get there,” says Bill Hardekopf, CEO at LowCards.com. “Problems with mail delivery are not an acceptable excuse to an issuer for your late payment.”
3. Not checking your credit report
Every 12 months, you’re entitled to a free copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Because errors can appear on your report for reasons outside your control — such as someone sharing the same name as you and the bureaus mixing up your accounts — you need to vet each report. In fact, one in four Americans has spotted errors on their credit reports, according to a 2013 Federal Trade Commission survey. Because it can take time to get errors removed, you’ll want to be proactive and contact the credit bureau immediately if you notice an issue. Take note: Your credit report includes only your credit history — not your numerical credit score. (You can use myFICO.com’s free score estimator to get a rough idea of your score.)
4. Opening too many credit cards at one time
Every time you apply for a credit card, you trigger a “hard inquiry” on your credit report, which dings your credit score by up to five points. Although a slight ding may not seem like a big deal, opening multiple cards back to back could significantly damage your score. Also, each time you open a new credit card, you shorten the average age of your credit accounts; this can hurt your length of credit history, which constitutes 15% of your score.
5. Closing old credit card accounts
If you close an account, it reduces the average age of your accounts and lowers your available credit limit — a double blow to your score. Make sure you charge a purchase to each credit card at least once per quarter; if you don’t, the credit card company could perceive the account as inactive and potentially close it without giving you advance notice, says Beverly Harzog, a consumer credit expert and author of The Debt Escape Plan.
6. Carrying a balance
OK, this tip doesn’t boost your credit score, but it will save you money, so we feel compelled to mention it. Carrying a balance from month to month could mean you’re effectively wiping out any points or cash back you earn — even on a rewards card. “[Carrying a balance] doesn’t seem like a big deal when the debt is small, but compound interest on the balance can make your debt go from small to huge before you know what’s happening,” says Harzog.
The moral: Pay off your credit card balances in full and on time each month. “Credit cards are a tool to help build credit,” says Harzog. “They should not be used as a substitute for a personal loan.”
Call or email Kelly Wilson for any questions you have about finances.
- See more at: http://www.trulia.com/blog/improve-your-credit-score-avoid-credit-card-mistakes/?ecampaign=con_cnews_digest&eurl=www.trulia.com%2Fblog%2Fimprove-your-credit-score-avoid-credit-card-mistakes%2F#sthash.rpb9ZuGZ.dpuf