Credit - Credit Rating Education Done In Time!

The statement is false because while the Canadian Government has established plans like the Canada Pension Plan and Old Age Security, these plans may not provide sufficient retirement income for all retirees to live an ideal lifestyle. Many retirees may need to supplement their retirement income through personal savings, investments, or other sources in order to maintain their desired lifestyle during retirement.

Phishing is a process in which a fraudulent website or communication pretends to be a legitimate entity in order to deceive users into providing their private information. This can include personal details such as passwords, credit card numbers, or social security numbers. The intention is to use this information for malicious purposes, such as identity theft or financial fraud.

Deleting your Facebook, Twitter, and MySpace account is not a recommended method to reduce the chances of identity theft. While it may reduce the amount of personal information available online, it does not eliminate the risk entirely. Identity theft can still occur through other means, such as data breaches or phishing attacks. It is important to take additional measures, such as protecting your computer with antivirus and firewall software, shredding junk mail, being cautious of websites that ask for personal information, and only giving your personal information to trusted sources.

Your credit score generally determines the interest rate of your lease or finance on the vehicle. Many deals also avoid dealing with borrowers who had been bankrupted.

The three most important factors that will influence your credit score are your payment history, whether you have declared bankruptcy, and the amount of your outstanding credit balances. These factors are crucial in determining your creditworthiness and financial responsibility. Your payment history reflects how consistently and timely you make your payments, while bankruptcy indicates a significant financial setback. The amount of your outstanding credit balances shows your level of debt and how well you manage it. These factors are used by credit bureaus to assess your creditworthiness and determine the risk of lending to you.

A good budget should not necessarily be very tight. While having a tight budget can help control spending and promote efficiency, it is not the only factor that determines a good budget. A good budget should be balanced, realistic, and tailored to individual financial goals and circumstances. It should allow for necessary expenses, savings, and some flexibility for unexpected situations. Therefore, the statement that a good budget should be very tight is false.

If the balance of your credit card is $10,000 and the bank charges you with a 17% interest rate, the minimum payment would be 4% of the outstanding balance, which is $400. By only paying the minimum payment every month, the remaining balance would accrue interest. The interest charged each month would be 17% of the remaining balance. Therefore, the interest charged in total can be calculated by summing up the interest charged each month until the balance is paid off. In this case, the total interest charged would be $5,407.

Student loans repayments start after the grace period stated on your loan documents which is generally six to seven months after your study end date

This statement is false because while keeping spending within the credit limit and paying bills on time are important factors in maintaining a good credit score, they are not the only factors. Other factors such as the length of credit history, types of credit used, and credit utilization ratio also play a role in determining credit scores. Therefore, simply following these two practices may not guarantee that credit scores will be fine.

The Tax-Free Savings Account (TFSA) was introduced in Canada in 2009. From 2009 to 2012, the annual contribution limit was $5,000. Since John started contributing in August 2009, he would have contributed for a total of 5 months in 2009 (August to December). Therefore, his total contribution for 2009 would be $500 (5 months x $100). In January 2010, the contribution limit for 2010 would be added, which is $5,000. So, his total allowable contribution at the beginning of January 2010 would be $9,500 ($500 + $5,000 + $4,000).

Chequing accounts have higher transaction limits that allow you to make purchases and withdrawals without paying extra fees. This would be most suitable for students who do not yet have a credit card and generally pays with cash and debit.