Day: October 12, 2023

Boost Your Credit ScoreBoost Your Credit Score

October 12, 2023October 12, 2023| BenitoBoost Your Credit Score| 0 Comment| 12:00 am

DO YOU WANT TO BUY A HOME, GET A STUDENT LOAN, FINANCE A NEW VEHICLE, REMODEL THE BASEMENT, OR MAYBE USE A CREDIT CARD TO CHARGE BUSINESS EXPENSES? HAVING A HEALTHY CREDIT SCORE IS IMPORTANT TO BORROWING MONEY.  

Applying for a loan or credit card to finance a purchase is essentially asking a lender to trust that you’re going to pay them back according to the terms you agree upon. Landlords, insurers, and employers often use credit information to filter out applicants they may deem too risky. While it may not seem fair in some cases, lenders often see your credit score as a sign that the rest of your life is well managed and that you “take care of your business.”

At Canopy, we know you are more than your credit score. We are passionate about giving chances to people who have been turned away from other financial institutions because of factors like poor credit.

However, we believe that empowering members to learn about finances will help them continue to grow. Being educated on the ins and outs of credit scores is a crucial step towards financial wellness.

Who decides my credit score?

In the United States, there are three credit reporting agencies. Experian, Equifax, and TransUnion. Each reports and calculates your score differently. 

What’s a good credit score?

Credit scores range from 300-850. This is the breakdown:

Excellent: 780-850

Good: 660-779

Fair: 600-659

Unfavorable: 500-599

Deficient: 300-499

Why does having good credit matter?

There are many benefits to having good credit. Many areas of life from lending to Employment benefit from good credit. Having good credit improves access and lower cost for:

  • Borrowing needs
  • Housing – whether renting or buying
  • Transportation   
  • Insurance: auto insurance premiums can sometimes increase more for having poor credit than having an at fault accident on your driving record. 
  • Communication Services

What makes up a credit score?

Your credit score is calculated by the credit reporting agencies with five factors. Each factor is weighed differently to make up the total score, with some factors like payment history mattering much more than credit mix.

TransUnion breaks down these five factors this way:

  • Payment history: 40% — the most important factor is to pay your bills on time. Don’t be late. Don’t miss payments. Setting up automatic payments can help with making sure you are always on time.
  • Credit utilization: 23% — credit utilization is based on the overall amount of money you’ve spent on your credit cards or accounts that have credit limits. In order to look “less risky” to lenders, don’t use more than 30% of your total available credit across all your accounts. Doing so may indicate that you’re dependent on borrowing or simply overspending based on your income and ability to pay back. Pay down balances as much as possible each month. To keep within under 30% utilization, pay off cards multiple times a month or spread payments out on a variety of cards.
    • Example: Alex has three credit cards. The first card has a limit of $1,000, the second a limit of $2,000 and the third a limit of $5,000. Together, her available credit is $8,000. To make sure she stays under a 30% utilization for her $8,000, Alex pays off her cards if she gets close to or above $2,400 in combined purchases across her cards.
  • Length of credit history: 21% — the longer your credit history, the more data is available to show creditors that you’re a good risk and you’ve proven it over time. Keep any credit cards you have active by making a purchase on each one every few months. Inactive accounts might be closed by the lender, which can reduce your average credit age and lower your credit score.
  • Credit mix: 11% — maybe you’re paying a mortgage, have paid off an auto loan, and pay off your credit card balance each month. The ability to manage a variety of types of credit adds points to your score.
  • Recent credit inquiries: 5% — creditors checking your credit before making a lending decision, can hurt your scores. It’s usually temporary but can cause your score to fall a few points. Wait at least 6 months between hard credit inquires. Soft credit pulls (like checking your credit score on a free website) does not effect your credit score as it is more of a guess rather than a precise number.

To learn more on how to Boost your Credit Score, please check out Credit Score Boost

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5 Methods to Raise Money for Your Service5 Methods to Raise Money for Your Service

October 12, 2023October 12, 2023| Benito5 Methods to Raise Money for Your Service| 0 Comment| 12:00 am

1. Taking your business public. Although security laws in the U.S. have made it simpler for businesses to go public, and offer stock as a method to raise needed funds, this is still probably the most dangerous option. It is normally not a suggested option for very new or extremely small companies. Because of the number of legal issues included, talking to a well-informed Lawyer beforehand is essential. There is likewise a great deal of stress associated with running a public company, and a significant loss of autonomy and control. Before making this option, be definitely sure that this is the best course of action for your company.

Remarkably, in a current survey, almost 30% of entrepreneurs stated that they raised all or part of the capital they required through household members. If this is your choice, make sure that you have your lawyer draw up a routine business contract. Tell them about how much money they can make, not about how much you require their help.

This is the most common way for business owners to raise needed organization capital. You desire to look at the long-lasting consequences of utilizing your savings, life insurance coverage or credit cards, especially in the occasion that your business endeavor stops working, or does not bring in the projected return on investment (ROI). If you do end up funding your task utilizing credit cards, make sure that you shop around initially, and discover the card that will provide you the best rate and gives you the most “bang” for your buck.

Prior to even looking for venture capital, look at your company from an outsider’s point of view. (Contrary to popular belief, your company does not have actually to be involved in high tech to bring in venture capital). Your next action ought to be to look at your “circle of impact” and see if you understand someone who can provide you an individual introduction to somebody at the venture capital company.

5. Surprisingly, one of the most typical ways (especially for brand-new business) to raise equity capital, is by inviting your potential or current staff members the chance to become financiers. Once again, prior to going this path, talk to your organization attorney, and put policies into location that plan for potential problems. Or an employee goes and gives up as a competitor with you after discovering all of the business tricks?

Here is a lawyer that may help with business and related concern:

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No matter which option you make in trying to find equity capital, by planning ahead, doing your research and following the suggestions of your attorney, you’ll increase the probability of raising the cash you need and making the relationship in between you and your investors a rewarding one.

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