Your Credit Score Dropped. Why?

credit score dropped

It happens to many of us at one point or another; you order your credit report and are stunned to see that your credit score dropped and is notably lower than what you were expecting it to be. So, what happened? And more importantly, what can you do to fix it?  Here are some of the most common reasons:

A Hard Inquiry Occurred

hard inquiry

If you’ve recently applied for additional credit or someone pulled your credit file (a lender at a financial institution or a potential landlord, for example), your credit score likely dipped because they created something called a hard inquiry.

Unlike a soft inquiry (which most often occurs when you check your own credit score), a hard inquiry involves a third party requesting a copy of your file and temporarily lowers your credit score. It’s important to note that not all inquiries from third parties result in hard inquiries; an employer checking your credit report during the hiring process will not negatively affect your credit score, for example.

This is why it’s important not to apply for credit from too many places in too short a period of time.  The dip in your score can be disconcerting to see but it shouldn’t actually be a large enough decrease to negatively affect your ability to be approved for credit or other loans.

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Should You Use Credit Monitoring Services?

credit monitoring

Are you concerned about fraud or identity theft? Does the thought of discovering that someone has impersonated you and stolen anywhere between hundreds and thousands of dollars in your name give you anxiety? Then credit monitoring might be an option worth pursuing.

What is Credit Monitoring?

credit monitoring

Credit monitoring is pretty much what it sounds like – you enlist one of the various financial companies out there to keep an eye on your credit for you and to loop you in the second there’s a concern or a change to your credit accounts.

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What is Debt Consolidation?

debt consolidation

Do you find yourself 1) drowning in debt 2) uncertain about what payments are actually due when? If you feel like you’re in over your head and could use some serious financial simplification, then debt consolidation might be the right option for you.

So, what is debt consolidation? In the simplest terms, it means taking out a new loan and using it to pay off all of your older debts so you’re left with one loan (into which all the previous debt has been combined).

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Saving Money During the Holidays

saving money during the holidays

Shopping for Christmas presents and other holiday related items can be pretty stressful. We want to do what we can to help you minimize your anxiety this December so we’ve compiled the highlights of some of our favourite posts about saving money during the holidays.

Before The Holidays:

Plan Ahead

Start thinking about the people on your to-buy list as early as September or October. Pay attention to the offhand or throw-away comments they make and make note of the things they express interest in. The sooner you can start getting things here and there/spreading out your shopping, the easier December will be on your wallet.

Establish a Budget in Advance and Stick to It

Ask yourself, ‘How much can I reasonably spend without going into debt or putting myself into a precarious financial situation?’. Whatever that amount is, stick to it. There is rarely a gift that’s worth jeopardizing your own financial stability over.

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Saving for your Car Down Payment

car down payment

Are you looking to buy a car and trying your best to save up some money? We’ve got some tips to help you save for your car down payment.

Cut Down on Extras

Saving money when you’re already watching your budget is never an easy task but there are a few things you can do to help save up a reasonable amount for your car down payment. The first thing you can do is cut down on extras and indulgences. This doesn’t mean you have to deprive yourself of your morning coffee or the occasional take out. The key is to try and reduce how much you’re spending on non-essential items (only temporarily) until you’ve put aside a comfortable sum of money.

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