What can you buy when you don't have credit?

Let's have a real conversation about financial responsibility, money and paying your bills.  We need Credit.  We all need and use credit and debit cards.  Flaherty has tightened Lending Policies for mortgages and keeps talking about household disposable income that changes with interest rate increases and other household expenses like Heat and Hydro. [Toronto, Canada in winter without heat and hydro is not an option]

What can you buy without Credit?

Now There are two variables;

• Increase Income
• Reduce Expenses

You can work an extra shift, get a part time job, or get a better paying job to supplement your income. You can rent a room or take in a boarder. You can pare down your lifestyle to where you are able to handle your monthly expenses and save for major purchases or vacations. Do without a Cell Phone, Cable or Internet.

Borrowing more money, or jamming your credit cards to the limit is not an alternative.   Please refer to ANY BANK card holder agreement and you will discover that paying the minimum balance will take 20 years to repay that $3,000 that was so easy to run up;  the preferred interest rate and extra fees you pay to get points don't matter when even one payment is late and THEY increase your interest rate to 28.85%

Do you need Major department store cards  like SEARS, Canadian Tire and the Bay?

Best Habit?  Pay off your entire credit card bill every month.

So you would like to buy a house but your credit score is low or you have a few blemishes. You can ignore it and just be angry,  You can phone a trustee in Bankruptcy and file or you can try these new soft proposals to your creditors.  [same as bankruptcy]

Credit Repair 

We can provide solutions to your money problems. Some of the issues we have dealt with are helping you create household budgets, consolidations and refinancing, smoothing out Credit Bureau errors and working with you over a period of 6 to 18 months to improve your credit score.

There are many reasons why you need mortgage or credit assistance; we've heard most of them, so don't hesitate, give us a call 416-410-1150  or send me an email.

Veronica Thompson, a Mortgage Agent with Mortgage Alliance Accumetrix (License #12036)