If you’re looking for tricks to maintaining good credit during hard financial times, author Richard Moxley has some tips for you.
Moxley joined Global Calgary Wednesday to discuss topics ranging from how credit affects insurance premiums to why paying off a loan might not be the best idea.
He said while keeping balances at 50 per cent or lower should be the goal to avoid hurting your score, if you finish and close the account, it might be worse than having that debt.
“Paying a loan improves credit, but closing an account or paying off a loan will lower your credit,” Moxley said.
Should you have to make some tough choices on which bills to pay, there are some that should come first.
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According to Moxley, things like your utilities, student loans, Canada Revenue Agency payments, mortgages and cellphones don’t affect or are far slower to affect your credit score than other bills.
While economic times may be tough, it’s important to keep your credit score up so it doesn’t impact future plans.
Moxley said that besides the obvious perk of receiving better interest rates on financing, your credit score can reach as far as affecting your insurance premiums and even the job hunt.
“It’s big in the financing industry, but many larger corporations are using it during the application process, as a indication of someone’s integrity,” Moxley said.
Watch Moxley’s interview above for tips on how to make your credit work for you.