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  • Writer's pictureTrusha Desai

Credit: Does It Work for us?

Accounting, GST, taxes, bookkeeping

Isn’t auto-fill an awesome tool? We don’t need to enter our credit card number or address. As soon as we start with our first name, everything is entered, kerplunk!

When do we look up our credit rating? When we apply for a car or personal or business loan, a line of credit, a mortgage, or credit card. Or (woe betide!) when the bank calls us with an ominous message that our credit card is hopelessly overdrawn and there are charges that we cannot identify … yes, Happy Holidays!

When the lending division of our bank gets personal, very personal, and looks minutely at our tax returns for the last two years, profit and loss statements and bank statements. When we wish that we could hide under the chair ~ not be the chair, if that’s what we are.

Therefore, before marching up to the bank for an inquiry into a not-so-murky past, make sure that we actually need that investigation. For any credit check will bring those points down: something we may not always be told the first time around, unless we ask. Those numbers, like our haemoglobin count or IQ should be higher than the norm for us to pull in an unsecured credit card. If they are low, we might need to take a pinch of good old-fashioned sodium chloride (sea salt will work) or ensure that our dizziness is not caused by mere hypotension.

Once we have acquired the goods, make sure that we maintain the credit rating by making minimum if not full payments on time. If we get into the swing of switching balances from one credit to another, our finances may not be where they should be at. If we pay minimum balance on a large outstanding balance that may bring our points down: for our debt ratio is high. If there is a possibility of a default, for whatever reason, re-negotiate terms of payment with the lender.

Little niggly details that must be checked out before the holiday season is over: so that we can ring in a successful and financially fortuitous 2016. To get the financial house in order, do give me a call (before you down that pesky martini).

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