NailTheNumbers.com

HOW TO: KEEP SCORE WITH YOUR CREDIT

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Playbook No3Released: Sept 21, 2015

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ALL GOOD? READ ON>>>

THE PLAYBOOK PROS

Taunya Woods Richardson | Campaign Creator and Chair, Let’s Talk Money @TTaunya // nailthenumbers.com // @NailtheNumbers

Taunya’s reputation as the Startup’s Money Maven is built on her ability to dive into the uncomfortable topic of finance with tremendous transparency, empathy and humour. She is a thought leader, solution architect and financial literacy champion, with the rare ability to both motivate entrepreneurs and equip them with actionable change strategies to better control their finances and outcomes.

25 Years Experience ▫ Social Entrepreneur ▫ Investor ▫ Fund Manager

“TOO MANY PEOPLE SPEND MONEY THEY HAVEN'T EARNED, TO BUY THINGS THEY DON'T WANT, TO IMPRESS PEOPLE THAT THEY DON'T LIKE.” ― WILL ROGERS

Protect your good credit at all costs, it may be all you have to banks on if your venture falls through.

Taunya Woods Richardson // @TTaunya

Campaign Creator and Chair, Let’s Talk Money @NailtheNumbers LET’S GET STARTED>>>

STATE OF THE NATIONFACT: The

household savings rate in Canada was 3.8% at the end of 2012, near its all time low. It was almost 20% in

1980s.

FACT: 90% of Canadians have more debt than they did five years ago.

FACT: The average Canadian had $27,845 in non-mortgage debt at

the end of 2012.

FACT: Only 47%

of Canadians

budget.

CHECKING IN

How often do you check your credit score? 795 voters told us…

Never 43.8%

Once a Year 33.8%

More than twice a year 12.6%

Every six months 9.8%

THE 5 C’S OF CREDITCharacter // Your reputation with money.Capacity // Measures your ability to repay a loan by comparing your income against your debts. Capital // How much you’re investing. Collateral // Any property or large assets you may have helps to secure the loan. Conditions // Such as interest rates and the amount of principal required will influence the lender's desire to finance you, along with any external conditions.

WHAT IS A CREDIT REPORT? Your credit report is a

summary of your credit history.

Evaluate whether you are a good credit risk and what interest rate to set.

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

Equifax www.Equifax.ca

TransUnion www.TransUnion.ca

CREDIT SCORES A rating of your financial health at a specific time.

The higher your score, the lower the risk.

349 to 619 Poor

620 to 649 Fair

650 to 749 Good

750 to 849 Excellent

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

“Aim for good, not excellent."

@TTaunya

WHO’S CHECKING YOU OUT?

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

In general, negative information more than

seven years old from the date of last activity (ten years for bankruptcies) must be removed from

your file.

Creditors and Potential Creditors

Mortgage Lenders

Landlords

Employers

Suppliers

Utilities

Insurance Companies

Merchant Accounts

Government Agencies

THE MIX Payment history is 35% Debt level is 30% Length of credit history 15% Inquiries are 10% Mix of credit is 10%

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

SNEAK A PEEK *Check it out

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

QUIZ: Q1Getting a copy of your credit report is:

A. A good way to check for identity theft.B. The only way to know if your report is

accurate.C. Free of charge, if you request the

report to be sent to you by mail.D. All of the above.

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

ANSWER: DChecking your credit

report is not only a good way to check for identity theft; it is also the only

way to be sure that your report is accurate.

QUIZ: Q2If you have applied for several credit cards or other forms of credit within a short period of time, this could have a negative impact on your credit score.

True of False?

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

ANSWER: TRUEAccording to one credit

reporting agency, research shows that consumers who are seeking new credit

accounts are more at risk than consumers who

aren’t trying to obtain credit.

QUIZ: Q3Which of the following does not affect your credit score?A. Your payment history – whether you have never

missed a debt payment.B. Any collection or bankruptcy that has been

recorded against you.C. Your history of repaying informal loans from

family or friends. D. Any outstanding debts you have. E. Your account history – how long you have had

credit, and the types of credit you have.

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

ANSWER: CInformal loans do

not affect your credit report,

unless they result in a court

judgment or a lawsuit against

you, in which case the resulting

judgment may appear on your credit report.

RECOGNIZE THE DANGER SIGNALS You use your credit cards as a necessity instead of a convenience. You use credit or cash advances for your daily living expenses. You miss payments or due dates.You’re near the credit limit on most of your cards. You borrow from one card to pay another.You transfer balances every few months just before the introduction offer expires.

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

TAKE CONTROL OF YOUR DEBT Use savings to pay off balances.Pay down your highest interest rate debts firstSwitch to less expensive credit cards.Call creditors to negotiate for lower rates Start automatic/online bill payment to stay on schedule.Leave your credit card at home.Avoid “buy now, pay later” offers. Get a consolidation loan to make one low-interest payment.

©2014-2015 The Kolo Project, Inc. | Let’s Talk Money Campaign

NAIL IT!

Toolbox

TIPS + TOOLSDebt Calculator www.creditcanada.com

Credit Card Selector Tool and Payment Calculatorwww.fcac.gc.ca

Credit Card and Loan Repayment Calculator www.GetSmarterAboutMoney.ca

Choosing the Right Credit Card for You www.fcac.gc.ca

Equifax // www.Equifax.ca

TransUnion www.transunion.ca

DO make wise decisions about purchasing items you need versus those you simply want.

DO let your creditor know in advance if you won’t be able to make your monthly payment on time.

DO stay within 30% of your credit limit. DO negotiate a lower interest rate. DON’T use your credit card to make everyday purchases.

DON’T get into the habit of making minimum-only

payments. DON’T use your credit card to buy things you can’t

afford. DON’T close out a credit card without knowing how your

credit will be impacted.

NOW WHAT…Do you have questions? Want to connect with the Pros, visit us at SpreeCast for a list of upcoming Playbook Drills, including HOW TO SKETCH OUT YOUR STARTUP COSTS AND CASH FLO PROJECTIONS.

Looking to get it done and make it happen? Book a Bootcamp. Action-packed and highly-interactive, you’ll work hard and sweating buckets, but you’ll take great pride in the end result. CHECK OUT UPCOMING BO

OTCAMPS

CHECK OUT UPCOMING DRILLS

Keep me posted @TTaunya or taunya@letstalkmoney(dot)biz