Life on Credit

The art of borrowing money

Top 5 Student Credit Cards for Young Canadians

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Young Canadians usually have a more limited exposure to credit, which makes it more difficult to get approved for unsecured loans and specialty credit cards. The good news is that issuers offer student cards that are specially designed for young people enrolled in college.

Options Available to Young People

Young Canadians have several options to look into, including department store, secured, prepaid, and student credit cards. Secured cards require that customers first make a deposit and then use the money to pay bills and make payments. This is one option if you want to build credit. A department store card is another option that gives you access to exclusive promos and deals but the rate is often higher compared to standard cards. A prepaid card is a third option that works much like a standard debit card and payments are not reported. A student credit card is also an alternative, and there are perks such as cash back incentives, no annual fee, and discounts on school-related items and purchases.

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What Are the Benefits of Student Credit Cards

Student credit cards offer a number of benefits, among which additional protection in the form of zero fraud liability, miles, cashback points and other incentives, and lower credit limits. Many issuers also offer convenient tools to save users valuable time, help them stay current on their payments, and avoid penalty interest and negative impact on their credit score. Such tools are, for example, automatic bill payment, spend analyzer, and others.

How to Apply

It is easy to apply for a student card if you meet the requirements. Many issuers offer online applications and ask customers to provide employment, personal, and financial details such as your social insurance number, mother’s maiden name, whether you are a landed immigrant or Canadian citizen, and whether you are a domestic or foreign student. You may be asked to provide information such as your expected graduation date, program start date, whether you apply on your own or together with a co-signer, etc.

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Fees to Watch for

Like other credit cards, student cards come with fees such as penalty interest, annual fee, cash advance fees, foreign currency conversion fees, and others. If you find good deals with no annual fee, this is a great way to save on charges. There are other fees to check for with your issuer, including late payment and over-the-limit fees, replacement, lost, or emergency issue card charges, and additional cardholder fees. The latter is usually $0 on no annual fee, low fee, and low rate credit cards. Fees and charges vary from one bank to another and can be different for business and individual cards. Some issuers charge fees for urgent card delivery as well as balance transfer fees, overdraft fees, surcharges, and so on. Make sure you check with your provider to ensure there are no hidden charges and penalties.

Top 5 Student Credit Cards

Many credit unions, banks, and online services offer student cards, including CIBC, Laurentian Bank, Desjardins, and others. If you are a regular customer and have a savings or checking account or an outstanding balance, it pays to check with your bank first.

#1. No-Fee Scotiabank Value® Visa Card SB

Scotiabank features a handy student card with card protection and introductory rate of only 3.99 percent. The introductory rate is for both cash advances and balance transfers, and makes it a good choice if you need to consolidate high-interest credit card balances. The card also offers car rental discounts, itemized transactions, and free supplementary cards. All in one this is a great student credit card choice.
• Annual fee: none
• Interest rate: 16.99 percent
• Credit limit: $500 (min)apply

#2. Tangerine Money-Back Credit CardMoney-Back Credit Card

The Tangerine Money-Back Credit Card is a great choice for students, as it doesn’t have annual fee, and is actually one of the top cashback credit cards in Canada. The card offers 2% money back in many categories, and 1% on everything else. However for a limited time you can get 4% cashback in the 2% categories for the first 3 months. The card has no limit on the amount of cashback rewards you can earn.
• Annual fee: none
• Interest rate: 19.95 percent
apply

#3. Desjardins VISA® FOR STUDENTS ONLY Credit Carddesjardins-students

Also a great choice to start building credit, VISA for Students Only comes with handy features such as free-of-charge access to credit reports, travel insurance covering the first 3 days of each trip, mobile device insurance, and more. Cardholders benefit from additional perks such as flexible financing, no annual fee on additional cards, payment reminders, and the option to manage their account from their tablet, mobile device, or computer. There are additional features such as generous Hertz discounts, mobile payments, and no transaction fees.
• Interest rate: 12.9 percent
• Annual fee: $30

• Interest rate: 19.9 percent
• No annual fee

#4. Laurentian Bank Student VISA® Black Cardvisa_laurentian

Laurentian Bank also features a student VISA card with perks such as exclusive discounts, free additional cards, and more. In addition to virtual mail statements, customers also benefit from convenient payments at bank branches, online, by phone, and by mail. This product is a great choice to build credit if you are studying aboard and are a full-time student. You can use it to make payments in emergency situations or pay daily and small expenses. If you usually maintain a balance, you may want to look into other options.
• Interest rate on purchases: 19.99 percent
• Monthly fee: none

#5. CIBC Aventura® Visa* Student Cardcibc-student

CIBC Aventura is another student card that offers the option to collect rewards points and features benefits such as accident coverage, travel medical insurance, mobile and online banking, authorized spending limits, and a lot more. Customers are free to use the online banking system to request additional cards, increase their limit, and make payments. The first purchase earns 5,000 rewards points. Cardholders also earn 2x bonus points on travel purchases at the CIBC Rewards Centre and 1 bonus point on regular purchases.
• Interest rate on purchases: 19. 99 percent
• Annual fee: $39
• Up to 3 free additional cards

#6. MBNA Rewards MasterCard® credit card for Studentsmbna-student

This student credit card is yet another option if you are new to credit and offers immediate cash access, online account access, and unlimited rewards. Each dollar spent brings 1 rewards point. You can redeem points for charitable donations, money back, gift cards, travel purchases, and brand-name merchandise. To apply online, college students are asked to provide information such as date of birth, SIN (optional), monthly payment and housing status, employment status (unemployed, self-employed, retired, homemaker, employed, etc), and other financial and personal information.
• Interest rate: 19.99 percent
• Grace period: 21 days
• No annual fee

Conclusion

As you can see, big banks and other major issuers offer plenty of choice to help you build a solid credit history and stay current on utility and other payments. A student credit card is a handy tool if you make payments by the end of the grace period. Just make sure you check for transaction fees such as cash equivalents, over-the-counter cash, and ATM fees, account fees, and other charges. Ask about the default rate in case you are late on your payments because penalty charges can be considerably higher. If you have a credit card with high interest charges, there are student cards with a balance transfer option to benefit from a lower interest rate. Ask about the promotional rate as well and the amount you can request if you choose to make a balance transfer.

How Not to Overspend and Set a Realistic Christmas Budget

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It is so easy to overspend during this time of the year now that everyone is excited about Christmas and spending quality time with family and loved ones. This said, you may want to create a realistic budget to meet your daily expenses, pay bills, buy presents, and have fun with your family and friends.

How to Make a Holiday Budget

The first thing to do is to set financial limits and make a list of your spending goals and categories. List your regular monthly expenses such as groceries, rent or mortgage, utilities, outstanding balances, and so on. Then list your income, including wages, salaries, and additional income you may have. This will help you to find out whether you have surplus income to spend on presents or you have to rely on cash in your savings account. If you don’t have enough cash for a rainy day and no surplus income left, there are low-cost borrowing solutions to look into. Back to spending categories, you can make a list of Christmas expenses such as post-Christmas sales, holiday clothing, travel, Christmas tree and décor, entertainment, and holiday meals.

Holiday Gifts

You may include expenses such as kitchen and baking gifts, service gifts and tips, and holiday photos. Other items you can list include Christmas cards, shipping and postage, gift wraps, stocking stuffers, and of course, gifts. Shop around and calculate how much you need in total. If you want to have a more detailed list and plan, think of everyone you will meet and give a gift – grandparents, siblings, cousins, spouse, kids, uncles and aunts, etc. Other people on your list may include coworkers, bosses, partners, church staff, neighbors, and service providers. List all names on a list and divide them into categories, for example, “no gift”, “gift made”, and “gift to make”. This will give you a good idea about the number of people you can afford to give a present. Focus on the “gift to make” category and assign the amounts you plan to spend. Then assign amounts for the “gift made” category (the amounts you have already spent). Calculate how much you have in total. If the total amount is less than your budget for holiday gifts, then you can move names from the “no gift” category to “gift to make”. This is a great way to ensure that you are able to give presents to more people. If you want to, you can also make a gift list and list each gift in addition to gift amount. Alternatively, you can use the envelope system for holiday-related spending.

Think of the types of gifts that are suitable for colleagues, neighbors, and friends. May be Christmas treats, cookies, or anything else? This depends on your budget. Once you do this, have a list of all expenses, and a good idea of how much you need, you may want to start tracking your ongoing expenditures. After you paid for gifts or anything else, make sure you record all expenses to keep track of your spending. This will give you a good idea of the cost of the holiday season.IMG_0100

Other Considerations

To make things run smooth, it pays to prioritize expenses, especially during the holiday season when you have additional expenses. Priority expenses include things like your rent or mortgage, outstanding balances, and utilities. It is important to pay these first, along with council tax, payroll and income tax, spousal and child support, etc. Other expenses to meet include student and personal loans, medical bills, and credit card debt. It all depends on your financial situation, whether you have debt and how much you owe, and other considerations. Finally, there is one golden rule to follow, whether during the holiday season or any other time – live within your means and don’t overspend.

On a Tight Budget

If you are on a tight budget, there are great ideas for free gifts – you have one valuable resource to use, and this is your creativity. If you have enough time, you can think of gifts such as personalized CDs, repurposed old frames, homemade cookies, etc. You can create a scrapbook, album, or photo collage or you can knit or crotchet a sweater, table cloth or anything else. There are plenty of gift ideas such as homemade bread, good reads and books on your shelf, an encouragement jar, and so on. Whatever comes to your mind, really, is best because you know your loved ones well. And if you are short of time and have a tight budget, look for Christmas sales and discounts, promos, and online sales. Online retailers save on rent, salaries, and other expenses and offer exclusive discounts and hot deals.

Debt Consolidation: An Interview with Jeffrey Schwartz

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Samantha, LifeOnCredit.ca
Credit is a way of life here in Canada. The Canadian Banker’s Association (CBA) says a whopping 89 per cent of adult Canadians have at least one credit card, and the majority (60 per cent) pays their entire balance every month.

But what about the Canadians who carry credit card debt? What if that balance continues to grow, and the interest charges get bigger and bigger? There are a lot of debt management tools out there if you are wondering how to get out of debt. One option for relief is debt consolidation, and to get more information on this, I interviewed Jeffrey Schwartz. Schwartz is the executive director of Consolidated Credit Counseling Services of Canada, a non-profit charity that helps people get out of debt.

Samantha: What kinds of people seek credit counselling for help?
Jeffrey: We help Canadians of all ages and all income levels. Debt does not discriminate; everybody is financially vulnerable and can find themselves in trouble thanks to common issues like unemployment, illness, divorce, or simple overspending.

Samantha: What levels of debt do you typically deal with?
Jeffrey: Different levels of debt require different debt solutions. Typically if someone owes around $5,000 or less, we are often able to advise them on some changes they can make to their budget and lifestyle that can usually get them out of debt with a little hard work and determination. When you’re getting above $10,000 in debt, that’s when you may need a helping hand – often it can be too difficult to manage on your own, and we can provide some tools to get it under control. If you owe $40,000 or $50,000 or $60,000, chances are, the interest payments alone are crushing.LOC44

Samantha: I know people who have gotten into the trap of making minimum payments and trying to pay down huge debts on their own – just how hard is it?
Jeffrey: It’s a lot like being on a treadmill. You can exhaust yourself all you want, but you won’t get anywhere. Our website has a credit card interest calculator, and it’s a great tool to illustrate just how much interest you can expect to pay, and how long it will take, if you only make the minimum payments. For example, if you have a couple of credit cards with a total debt of $30,000, at 19% APR, it will take you nearly 40 years to pay that back. But that’s not the worst part. You’ll pay almost $47,000 in interest – more than your actual balance! Four decades and $77,000 dollars – it sounds like a punishment, not a repayment plan!

Samantha: Yikes. So it seems that it is the interest rates that really hurt people.
Jeffrey: Yes, when people are using high-interest credit cards and Payday loans, so much of their payments are going toward their creditors, and not enough is paying down the actual balance. That’s where we come in. Through our Debt Management Program (DMP), we are able to negotiate with your creditors to get your interest rates reduced to very low levels – often zero. You’ll still pay everything back, but without the heavy shackles of interest. Using the program in this way will allow you to pay back this debt, in full, within three to five years. To make it even easier, we consolidate all of your unsecured debts into one simple monthly payment.

Samantha: So what’s the difference between the DMP and say, a consumer proposal or bankruptcy?
Jeffrey: The big difference is with the DMP, you pay back the entire balance. With a consumer proposal and bankruptcy, you do not pay back your entire debt load, and your credit report will reflect that.

Samantha: Are there ever any cases in which a bankruptcy is the right move?
Jeffrey: It’s a worst-case scenario, but it’s helpful for people with massive debt loads and little means to pay it back. At that point, with too few assets and too little income, bankruptcy may be the best solution. The DMP is an excellent option for people who have experienced a hiccup in their financial lives but have the means to pay it back. They just need a helping hand. That’s where we come in – we can be that helping hand to lead you through your trouble. If you feel like you’re drowning in debt, we can throw you a life ring.

Canadian Dollar – Post-Election Strategies for Making Money Trading USD/CAD Currency Pair

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Experts warn that the Canadian dollar will remain weak over the coming months, with oil prices going down and revenues falling. Canada is one of the world’s largest oil producers, and lower oil prices certainly pressure the currency down. Another reason why the dollar is sinking further is the business unfriendly policies adopted by the liberal government. Truly, the government is committed to investing in waste water treatment, building bridges, repairing roads, and infrastructural improvements that will benefit engineering companies and the construction industry as a whole. At the same time, the government’s decision to run a deficit means a weak dollar, and experts warn that more debt also means larger interest payments and a weaker currency.trading

Making Money Trading USD/CAD

How to make money from Forex trading is a question that many investors ask post election and given the weakened external demand. The first thing to do is to learn more about Forex rates, current stock market trends, and how perceptions of government policies affect rates. If investors see the liberal party as spend-progressive, then they will be confident that the market is doing well. But this is just part of the puzzle. When it comes to currency trading, many believe that the loonie has further to weaken and fall due to falling gold prices and revenues of giants such as Kinross, Goldcorp, and Barrick. The economy of China, one of Canada’s trading partners, is also slowing down. As a commodity currency, the loonie has been affected by a combination of factors, among which risk sentiment, commodity prices going down, and China’s economy.

Investing in Assets and Currency Hedge Funds

Some Forex experts recommend buying into USD/CAD as long as most investors continue to sell. At the same time, a falling Canadian dollar, combined with low oil prices means that US assets increase in value if priced in CAD. The opposite is also true – US assets are worth less when the loonie is rising. Investors who are worried about the fact that the Canadian dollar will increase in value may want to look into currency hedge funds like iShares S&P 500 Index ETF CAD-Hedged. Others choose not to hedge and limit their US exposure to no more than 10 percent. Still others choose to invest in healthcare, technology, and consumer-oriented companies in the US and hedge their currency exposure. The goal is to reduce potential risk when investing abroad. Currency hedge funds promise significant payoffs and to this end, they follow market trends through computer algorithms. In some cases, currency hedge funds take bearish or bullish positions and report gains at a time when companies trading emerging-market assets report losses. In any case, the ultimate goal is to realize consistent returns. To this, currency hedge funds that focus on CAD to USD usually use advanced strategies and algorithms to follow the movements of currencies with significant trading volumes.

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USD/CAD Trading and Other Instruments to Make Profits

Crude oil is an important factor that affects the Canadian dollar. The reason is that oil prices are denominated in USD. The fact is that there is a strong USD – CAD negative correlation and the same goes about the price of oil. This means that when oil prices go down, USD/CAD goes down and USD weakens. The opposite is also true – USD/CAD rises when oil prices go down and USD strengthens. If you think that oil is going to rally more than USD/CAD will go down, then you may want to purchase both. By the same logic, sell both if you think that USD/CAD is going to decline compared to oil. Another idea is to invest in options on the futures and spot markets. This is a low-risk type of investment.

When there is no clear up or down trend, one option is to rely on hit and run trading in the hope of making small profits. In this case, you may want to pay close attention to trends and look for a small pull back and a bullish trend. When you spot a reversal pattern, then it is time to buy. Such strategies could be useful when the situation on the Forex market is unclear. When there is uncertainty about the direction in which the market will go, some experts recommend using Nadex spreads and the Iron Condor strategy to trade options. Nadex spreads can be used in a flat or downwards market while an upwards market requires credit spreads. Note that when you use Nadex spreads, there are time limits as well as a ceiling or floor level. Investors who use the Iron Condor technique buy the lower spread and sell the upper in the hope of making significant profits.

6 Steps to Reduce your Credit Card Debt by Thanksgiving

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There are many benefits to dealing away with debt within a short period, the most important being less stress and more money to spend on leisure, groceries, and home improvement.

1. Create a Budget

It is a good idea to create a budget to find out where your hard-earned money is going. The first thing to do is to list your combined income, including wages and salaries, bonuses, commissions, rent, and other sources of additional income you may have. Then make a list of your ongoing expenses such as mortgage payments or rent, groceries, cleaning detergents and cosmetics, daycare, clothing, and utilities (gas, phone, internet, water, etc.). Compare your expenses and income to find out if you spend more than you can afford.

2. Cut Back on Some of Your Expenses

Now that you have a budget, it is time to discuss different ways to cut on some expenses and use the money to repay any outstanding balances. If you spend too much on dining, for example, think of preparing homemade meals for your family. There are other ways to save on monthly or ongoing expenses, and one is to save money on transportation. You can do this in different ways – sell your vehicle, use public transportation (e.g. subway, bus, train), car pool to work, etc. In addition, you can save on debt in at least several ways by consolidating student or consumer loans, refinancing, and transferring high interest balances. There are automatic debt repayment plans as well.thanksgiving

3. Look for Additional Sources of Income

If you are unemployed or underemployed or have a seasonal job, then you may want to look for additional sources of income. One option is to look for part-time employment or a second job to increase your income. There are other ways to make money in the form of passive income. One is to open a high interest savings account to earn a higher yield. Another option is to invest in other low-risk products such as certificates of deposit or government securities. This is provided that you have some free cash on your hands.

4. Increase Your Payments

This is one way to save on interest charges and repay outstanding balances over a shorter period for a debt-free future. Always try to pay more than the minimum, especially on high-interest credit cards. If you have a low-interest card, you may want to use it to make payments. Note that if you only pay the minimum on a high-interest account, charges accumulate over time, and you are more likely to be late on your payments. Late and missed payments can have a negative impact on your score and future ability to borrow.

5. Reduce your interest rate

There are several ways to reduce the interest rate, and the most obvious one is to shop around for cards with low interest rates. In fact, some financial institutions actually offer such cards and advertise very low rates of about 6 – 8 percent. This is the standard rate provided that you make on-time payments. Penalty rates are usually significantly higher and apply to late and missed payments. Another option is to apply for a balance transfer card. If you have high-interest cards, then you pay a lot in charges, especially if you only pay the minimum each month. If you use a card with a high interest rate, then you should always try to cover the full amount. Otherwise it is better to use a low-interest product or transfer your existing balances to a card with a promotional period and a low rate. There are good balance transfer cards with long promo periods of 12 – 18 months and zero or a very low rate over the intro period. A third option is to contact your issuer and try to negotiate a lower rate. If you are a regular customer with a steady payment history and healthy credit score, they may actually agree to do this to keep you in.

6. Use Cash or Debit

This is a good idea, especially if you have multiple card accounts and a lot of debt to sort out. Either use your debit card to make payments online and in-store or carry cash with you. You may want to take small amounts with you to avoid the temptation to make frivolous purchases and overspend.

Conclusion

As you can see, there are many ways to reduce your debt load by Thanksgiving, from developing a budget and finding additional sources of income to trying to reduce the interest rate and using cash. If you have multiple debts, including consumer loans, mortgages, and credit cards, you may want to develop a repayment plan to get rid of debt faster.

Peoples Trust Credit Cards

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A FDIC-insured company, Peoples Trust serves large private and institutional investors and individual customers. Peoples Trust is a Vancouver-based trust company that offers a selection of financial solutions and services, including prepaid and secured cards, mortgage servicing and origination, high-interest accounts, and mortgage backed securities. The full array of financial solutions also includes residential, construction, commercial, and multi-family mortgages and deposit services – e-savings, TFSAs, RRSPs, GICs, etc. The company specializes in mortgage syndication and offers loan advances, construction loans, and mortgages with terms of 5 to 25 years. Fixed rate loans of $50 million or higher are offered as well as flexible underwriting solutions. Both floating rate and fixed rate loans are offered. The company also offers mortgage administration, including renewal and discharge processing, assumption, property tax collection, and payment processing. Customers also benefit from services such as legal instructions and mortgage initiation, default and arrears management, CMHC reporting, property inspections, and annual statement monitoring. Peoples Trust is also affiliated with Edmonton and Calgary Apartment Associations, B.C. Care Providers Association, Canada Deposit Insurance Corporation, and others.

Peoples Trust Credit Card

peoplestrust_card
This secured credit card allows customers with fair and tarnished scores to build or rebuild credit. The card can be used to pay for services and products and to make car rental and hotel reservations. Cash advances are also offered to help customers pay urgent expenses. This product is designed for newcomers to Canada, discharged bankrupts, and borrowers with no or limited credit history and bad credit issues. The deposit made is equal to the credit line offered. The minimum deposit is $500, and the good news is that cardholders earn interest. It is easy to apply online. Customers provide information such as occupation, years at current employment, yearly income, current employer, etc.

• Cash advance interest rate: 24.5 percent
• Purchase rate: 12.99 percent
• Penalty rate: 24.5 percent
• Annual fee: $69.60
• Supplementary cards: $35.40
• Grace period: 25 days
apply

About Peoples Trust Credit

Peoples Trust was founded in 1985, and is now part of the group of Triple Five companies. The company is headquartered in Vancouver and maintains offices in Toronto, Calgary, and Vancouver. Peoples Trust specializes in long- and short-term investment solutions and offers online banking facilities. It is also involved in different community initiatives to support organizations and volunteer programs. Employees are offered a comprehensive benefits package, including dependent life insurance, employee assistance program, extended health care, provincial health benefits, and more. Staff is committed to offering superb quality client services and innovative financial solutions. A privately owned company, Peoples Trust offers professional, personalized services and administrative support and advice on CMHC insured and conventional mortgage loans.

Scotiabank Credit Cards at a Glance

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The Bank of Nova Scotia offers specialty and standard credit cards with add-ons and incentives such as concierge service, complimentary hotel room and ticket upgrades, bonus rewards points, low annual and service fees, and many more. The bank offers business and personal cards and additional cards as well as secured and unsecured versions, depending on the customers’ debt to income ratio, income level, and credit score. There are low rate, no annual fee, student, travel, cashback, and other types of cards on offer with plenty of added features, including optional and complimentary services. Clients can choose from American Express and Visa offers with different credit limits, security features, travel and shopping benefits, and a lot more. There are special offers for creditworthy customers as well.

Scotiabank Secured Credit Cards

No-Fee Scotiabank Value® VISA Credit Cardsb

This card is definitely a great deal for people with bad credit and comes with a special intro rate, VISA checkout, no annual fees, and no balance transfer fees. The bank also offers special discounts, safety features such as credit card protection, and the opportunity to repay high-interest outstanding balances. Card checks are also available to help pay utilities, groceries, medical bills, and so on.

• No annual fee
• APR: 16.99 percent
• Intro rate: 3.99 percentapply

Scotiabank No Fee Credit Cards

No-Fee ScotiaGold® VISA cardSB_gold

A yet another no-fee Scotiabank offer, this card is the perfect choice for frequent travelers because of the added everyday and travel benefits. In addition to exclusive car rental discounts, the card comes with rental car collision coverage, commission-free travelers checks, and other add-ons. Credit card protection is an optional safety feature, and cardholders benefit from add-ons such as instant cash advances, chip technology, and more.

• Purchase APR: 19.99 percent
• Credit limit: $5,000
• Annual fee: none
• Grace period: 21 daysapply

SCENE® VISA* CardSB_scene

SCENE VISA also goes with no annual fee and rewards points for purchases at select retailers and for everyday purchases. The first purchase made on the card earns 4,000 rewards points, and there are added benefits such as exclusive rental discounts, mobile wallet features. Clients are free to exchange points for free movies, entertainment, and more. A free movie is worth just 1,000 points, and customers get 10 percent off snacks.

• Annual fee: none
• APR: 19.99 percent
• Credit limit: min $500apply

Scotiabank Low Rate Credit Cards

Scotiabank Value VISA* cardSB_value

This is a great card for major savings on balance transfers, and holders benefits from no transfer fees and a special rate of 0.99 percent valid for six months. Added incentives include discounts on AVIS rentals, supplementary cards, VISA checkout for smartphones, laptops, and other devices, and the option to pay down balances over a shorter period.

• APR: 11.99 percent
• Free supplementary cards
• Annual fee: $29
• Grace period: min 21 daysapply

Scotiabank Cashback Credit Cards

Scotia Momentum® VISA Infinite* cardSB_monentum_infinite

Scotia Momentum goes with a fee waiver during the first year, cashback on regular and drugstore purchases, gas, and grocery store purchases. Cardholders earn 4 percent back on groceries and gas and 2 percent on recurring bill payments. Purchases at drug stores also earn at 2 percent. One percent is offered on all other purchases. Insurance and standard benefits apply, including flight delay and trip interruption coverage.

• APR: 19.99 percent
• Credit limit: at least $5,000
• Annual fee: $99apply

Scotia Momentum® Cash back VISA* cardSB_momentun_no_fee

A great cashback offer by Scotiabank, this card features a special intro rate offered on transfers and advances as well as card checks, up to 2 percent cash back on eligible drug store, gas, and other purchases, and other incentives. The intro rate during the first 6 months is just 1.99 percent. Worldwide acceptance and Scotia card protection are added benefits. The bank also features a handy calculator to help calculate cashback.

• APR: 19.99 percent
• Credit limit: min $500
• Annual fee: $39apply

Scotia Momentum® No-Fee VISA* CardSB_momentun_no_fee

A no-fee VISA card with great features, Scotia Momentum comes with a special rate of 7.99 percent and 0.5 to 1 percent cash back. Cash back is offered on eligible grocery, everyday, gas, and other purchases. Recurring bill payments earn 1 percent, including subscriptions, home and car insurance coverage, utilities, cable and phone. Cashback applies to purchases at service stations, pharmacies and drug stores, supermarkets, grocery stores, and other participating merchants.

• APR: 19.99 percent
• Min credit limit: $500
• No annual fee
• Grace period: 21 daysapply

Scotiabank Student Credit Cards

L’earn VISA* cardSB_learn

This card comes with money rewards and helps students build a healthy credit score. Students earn up to 1 percent in cashback and benefit from added features such as instant cash advances, 20 percent off rental discounts, and card checks. Holders are free to order additional cards or optional balance protection.

• No annual fee
• APR: 19.99 percentapply

Scotiabank Rewards Credit Cards

ScotiaGold Passport® VISA* cardSB_gold_passport

This card is also a good choice for frequent travelers and goes with comprehensive travel insurance, 1 point for each $1 in eligible purchases, 5 percent cashback, and other incentives. Add-ons include rental car collision, trip cancellation, and travel emergency insurance. Cardholders benefit from major savings on travelers checks and emergency medical insurance.

• APR: 19.99 percent
• Annual fee: $65apply

ScotiaHockey® NHL® VISA* cardSB_nhl

Scotiabank offers a specialty rewards card that goes with discounts on in-store purchases, rewards points, and other incentives. Discounts are offered on car rentals and NHL merchandise. The first purchase on the card earns 5,000 rewards points.

• Earn rate: 1 point per $1 in purchases
• APR: 19.99 percent
• Annual fee: $29apply

Scotiabank Rewards® VISA* CardSB_rewards

This product is a great choice for customers looking for a credit card with rewards and no annual fee. The card goes with points to be redeemed for cruise deals, holiday packages, hotel accommodation, airfare, and more.

• APR: 19.99 percent
• No annual fee

apply

Scotiabank Travel Rewards Cards

Scotiabank Gold American Express CardSB_amex_gold

This travel rewards card offers 1 point on every two dollars in eligible purchases and features travel benefits and a flexible redemption schedule. Easy access and the option to book travel online are add-ons in addition to discounts on airfare, vacations and cruise packages, and car rentals. Points can be redeemed for gift items, investments, and more.

• APR: 19.99 percent
• No annual feeapply

Scotiabank American Express CardSB_amex

Scotiabank offers customers the opportunity to earn 20,000 in complimentary points and features a flexible rewards program that allows cardholders to earn 4 points on purchases made at entertainment venues, restaurants, grocery stores, and gas stations.

• Purchase APR: 19.99 percent
• Annual fee: $99apply

Scotiabank Credit Card Application

It is easy to apply online or at the local branch, provided that you haven’t declared bankruptcy recently (during the last 7 years), are a Canadian citizen, and fill in an application you’re your personal, income, financial, and other information. Applicants are asked to provide details such as deposit and savings accounts, time at job, place of employment, residential address, stock and investments.

Online Banking

Scotiabank also offers online banking facilities with beneficial features such as e-transfers, info alerts, Western Union money transfers. Customers are free to make money transfers, pay bills, check their account and balance history, and make pre-authorized payments. There is an option to open a trade account online and benefit from attractive pricing and commissions.

If You Have $10,000 Would You Put Them in a TFSA

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A tax-free savings account is a flexible and convenient savings solution that helps Canadians to earn tax-free income. This product can be used together with other investment vehicles such as registered education and registered retirement savings plans.

The Basics

There are multiple benefits to opening a TFSA, one being that consumers’ savings grow in a tax-free way while withdrawals and investment income are also tax-free. The fact that TFSAs allow flexible withdrawals is a further benefit for individuals. Another benefit is that there are no lifetime contribution limits to worry about provided that you are eligible. Finally, contributions to your TFSA account will have no effect on other government-provided benefits such as the Goods and Services Tax credit, Old Age Security, and others. With lifelong eligibility, this investment solution can be used at any age, whether you are a young professional or close to retirement.

What if You Are in the Middle Tax Bracket

Canadians with a high income level benefit from the new threshold or contribution limit ($10,000). Those who contribute the maximum will save about $3,800 in taxes over a 10-year period. With savings of about $5,000, those who fall in the middle tax bracket are making contributions of about 1/5 of their pre-tax income. At the same time, finance and tax experts point to the fact that the new contribution limit offers more flexibility, whether you are in the middle income bracket or have a more limited income. Even an income of $50,000 or lower makes the tax-free savings account a better alternative to the RRSP because TFSAs help save on taxes. Canadians who are about to retire may want to look into this option as well provided that they trim other investment solutions such as RRSPs and RRIFs.

In fact, the new limit is designed to benefit middle class couples. A couple in their early 40s, for example, is expected to accumulate savings of over $1 million over their lifetime, plus estate worth over $650,000. This is provided that both partners have an annual income of about $80,000 and aim to retire at the age of 58. Finance expects base estimates on a 3.5-percent real estate growth and 2.2-percent inflation. In general, a tax-free savings account is a good solution for young couples and professional in their early 30s if they are saving toward retirement or big-ticket items and other major purchases. Upper-class individuals will obviously benefit from the new limit, but the new measure is also designed for public service employees and teachers with defined benefit pensions and contributions they rely on. Young adults, on the other hand, may choose not to use RRSPs to save toward retirement altogether because of the tax issues associated with RRIF and RRSP withdrawals.

Is This Good News for Retirees?

Statements by the federal government indicate that retirees will be the major beneficiaries of the new contribution limit. To this, seniors may want to move cash from their RRSP or registered retirement income fund to a tax-free savings account. There are multiple benefits to doing this, one being that higher contributions reduce income tax. While many Canadians believe that it is not advisable to make RRIF withdrawals before the age of 71, this is not the case, especially for consumers with a registered retirement income fund. The fact is that individuals may benefit from early withdrawals by reducing their tax bill. In addition, there are estate planning benefits.

Some people are concerned that additional income will trim the benefits because they will be left with more taxes to pay. The good news is that this would be so only during the first couple of years once they retire. Then their taxable income becomes lower. The reason is that less cash in a registered retirement income fund means less money to which the minimum withdrawal applies. And while retirees pay more in taxes during the first couple of years, experts point out that there are several mitigating factors to take into account. One is that account holders pay at a 31-percent marginal tax rate which is lower compared to contributions from previous years. Thus Canadians benefit from the fact that they pay less in taxes on withdrawals.

Conclusion

There are plenty of benefits to opening a TFSA now that the contribution limit is set higher. All Canadians who are at least 18 years of age are allowed to contribute up to the limit and thus accumulate significant balances. These balances are not only conserved in a tax-free way but grow with time. Finance experts also point to the significant estate planning benefits offered by TFSAs. If one of the spouses was a RRIF holder and passed away, then the other spouse would suffer a major tax hit if they made RRIF withdrawals. With tax-free savings accounts, holders face less risk even if they make withdrawals early in retirement. And if you have $10,000, it is worth opening a TFSA and contributing up to the limit because this is a sheltered account. Some finance experts even advice customers to contribute to their grandchildren’s and children’s TFSAs in case they’ve already maxed out their own accounts. This is perfectly legal to do and yet another way to maximize your savings.

Too Many Bills to Pay? What Bills to Pay and What to Put Off

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Bills are piling up and you are short of cash to meet all expenses. You receive letters from financial institutions and utility companies as well as threatening calls. This is a warning sign that it is high time to put your finances in order and start to prioritize. There are expenses you cannot cut off completely such as insurance, groceries, and shelter and bills you can delay paying or you can look for cheaper alternatives.

Most Important – Basics

Obviously, you cannot go without basic necessities such as food, shelter, and utilities and there are bills you cannot delay paying.

Groceries

We buy groceries on a weekly and even daily basis and while there are ways to save on groceries, you cannot live without food. A balanced and diversified menu is essential for your health. Whenever you can, use grocery store coupons.LOC36

Shelter

Shelter means security for your children, family, and belongings. Whether paying rent or mortgage, you need a certain sum of money on a monthly basis. Otherwise you risk losing your home or your landlord will take action against you.

Transportation

Transportation is also an important consideration. We use public transport or drive to work, for grocery shopping, emergencies, and so on. There are unexpected expenses such as car repairs as well.

Utilities

Utilities are basic expenses for gas, power, water. This is the minimum to keep your home heated, clean, and safe. There are ways to save on utilities such as buying energy efficient light bulbs.LOC34

Insurance

Home, health, and auto insurance are necessary expenses. Home insurance covers your property and belongings while health insurance pays for hospital accommodation, treatment at the ER, medical expenses, and more.

Less Important

While you cannot deprive your children of shelter and food, there are expenses and services that are less important for the health, safety, and wellbeing of your family. Less important expenses are those that bring comfort and enjoyment but you can cancel subscriptions such as gym memberships and magazine subscriptions if need be. The same goes for internet, cable TV, and cell phone plans.

Phone

Obviously, it is important to have a phone in case of emergency. What you can do is cancel your cell phone plan and keep the landline.

Gym Membership

Unless you go to the gym for health-related reasons, look for ways to reduce membership costs. One way to do this is to cancel your membership and shop for deals during the slow season. Another way to save money on membership is to go at the end of the month and check for deals and promos.LOC35

Cable TV

There are ways to reduce your cable TV bill and free up cash to pay for necessities and emergencies. You can lower your bill by paring down your subscription plan. Another option is to cancel your plan and comparison shop to find a low-priced plan. Downsize and bargain.

Internet

To lower your internet bill, contact your provider and ask for lower-priced packages. Check what competing providers have on offer for new customers and ask your neighbors, colleagues, and friends about the types of deals they are getting. One way to negotiate a discount with your current provider is to tell them that you are not satisfied with the level of service.

Credit Card Bills

Credit card and loan balances contribute to piling debt. If money runs tight, it is time to look at your income and prioritize bills. Your income should cover basic necessities and debt payments at the very least. If you have multiple debts, you may want to prioritize and pay high interest balances first. If you have cash advances or payday loans that go with extremely high rates, think of ways to repay these debts first.

Decisions, Decisions

The most important step is to decide what to keep and what you can do without until you repay your debts, find a well-paid employment, and get back on your feet. Compiling a list of your expenses helps create a realistic budget. This is a good way to find out where your money is going. List your basic expenses first to see how much you are left with for other expenses. Then you can make a decision on what you can do without, whether it is cable TV, gym, or magazine subscriptions.LOC33

What to Do Next

The first step is to decide what bills to put off and how to scale down your expenses. The next steps are to pay outstanding balances and find a second job, additional source of income, or a high-paid position. If you have high-interest cards, shop around for a balance transfer card with a long introductory period and zero interest rate. You may want to open a savings, money-market, or checking account and use it as an emergency fund to cover the basics and pay off existing debts.

Conclusion

There are ways to create a realistic budget and stick to it to be able to meet all expenses, both basics and expenses such as cable TV and gym memberships. It is important to prioritize necessities, activities, and expenses to avoid excessive debt and live within your means. Talk to all family members and discuss different ways in which everyone can help lower your household bills. This is also a great way to teach your children a lesson to learn how to be financially responsible.

So You Have Bad Credit but Need to Get a Car Loan?

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autocreditexpressThere are finance companies and other establishments that offer bad credit car loans to consumers with damaged credit, and the prospects are often better for such applicants compared to borrowers with no history. In times when the economy is improving, more lenders are willing to accommodate customers with different credit profiles, and new players quickly expand and gain a market share. What is more, lenders have different criteria, and your credit profile is not the only factor they take into account. Your score is a more important factor when you apply for a larger loan, for example, a mortgage because financial establishments take more risk. Even if you are considered a moderate- or high-risk borrower, some finance companies will be willing to offer a near-prime car loan.

Car Loans in Canada

Bad credit car loans are available from finance companies, credit unions, and banks and major banks such as the Royal Bank of Canada, Toronto-Dominion, and others. Consumers are offered old and new auto loans with variable and fixed rates and flexible amortization and repayment schedules. Some banks advertise secured options with lower interest rates. Finance companies also offer funding and advertise quick processing and approval. While banks take longer to review and process applications, finance companies advertize quick approval within 1 or 2 business days. There is an option to apply together with a cosigner, but many lenders are unwilling to approve applicants with a history of bankruptcies. Many finance companies in Canada also run a credit check.

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Loan Types – Options and Differences

Secured Bad Credit Car Loans

Lenders usually offer lower interest rates compared to unsecured financing because the vehicle itself guarantees repayment. The rate can be as low as 4 percent but this depends on your credit profile. Financial institutions usually offer funding in the amount of $20,000 – $30,000, and the interest rate is usually fixed over the repayment term. Secured car loans for people with questionable credit are offered with:

• 95 – 100 percent approval rate
• No down payment required
• Or lower down payment compared to unsecured options
• Varying amounts based on the collateral

Unsecured Bad Credit Car Loans

This option is more expensive because of the lack of collateral and the higher risk involved for lenders.

• Less risky for applicants
• Higher down payment
• More difficult to find
• Interest rate of 7 – 10 percent or higher

Compared to secured options, finance companies offer smaller amounts. Even if the borrower defaults, the vehicle has not been pledged as collateral and cannot be repossessed. Besides, lenders take even more risk by offering loans to borrowers with damaged credit, and the terms are less competitive.

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What Happens if You Have Bad Credit

Finding auto financing with competitive terms can be a challenge if you have poor or no credit. Some banks are willing to accept applications from borrowers with а borderline score provided that they have stable income and good debt to income ratio. If your score is low, you may want to look into non-traditional lenders because they have more lenient requirements. They will factor in the condition of the vehicle, the length of the term, amount required, down payment offered, etc. Auto loans for people with poor credit are available online as an alternative to the frustration of dealing with banks and dealerships. Some lenders offer auto financing to consumers with a history of repossessions, consumer proposals, maxed out cards, written off accounts, collections, and late or missed payments. This is one alternative for consumers with bad credit and major issues who plan to purchase a vehicle. Another option is to try and improve your credit profile and apply with your local union or bank.

What Are Bad Credit Car Loans

Basically, this is a subprime or near-prime vehicle loan with a higher interest rate compared to standard solutions. The term varies from lender to lender and is usually between 36 and 72 months. Some finance companies offer terms of up to 8 years. A longer term, however, means paying more in interest charges. The monthly payment is based on the term, APR, and other factors. When applying for a bad credit car loan in Canada, consumers must be employed to qualify.

There are two types of financing offered, new and used car loans, and the latter usually go with higher rates. Both options are available through some finance companies, regardless of your credit profile. Some non-traditional lenders even offer financing to customers with past bankruptcies but this is rather unusual.

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Find a Poor Credit Car Loan in Canada

There are several options to look into, your local bank, your insurance company, bad credit lending services, and peer to peer lenders. If you are an existing customer, your local bank is your first stop because it is more likely that their loan officers treat you favorably. The same goes for your insurance company. A non-traditional lender is yet another option but make sure that you deal with an established and reputable finance company. To improve your chances of getting approved, you may want to bring some documents with you, including personal references, photo ID or driver’s license, and utility bills such as electricity, water, gas, or other bills. Make sure you bring recent pay stubs as well. If bad credit lenders are not an option for you, you can check with peer to peer lending services. What you do is create a profile on an online platform of your choice and post a listing that indicates the purpose and loan amount. There are investors that are willing to offer auto financing to consumers with a less than perfect score. The interest rate varies but if you are lucky, you can get a loan with a rate of about 7 percent. Finally, one option to improve your chances is to offer a significant down payment. You may ask your family for a loan or draw on your line of credit.