Improve your Credit in 2018
We’re all working hard at our new years resolutions this time of year and most of us share a few areas for improvement in common: health and finances.
If you resolved to improve your budgeting skills and credit score, then here are some tips to help you improve your finances and bump up your credit score in 2018.
Get a Credit card
Credit cards are one way you can improve your credit relatively easily. Making payments consistently and on time (at least the interest portion) can take you from poor credit to decent credit in a period of a year. If you don’t have credit, or have poor credit, obtaining a credit card can be a bit of a challenge. According to Global BC, the average Canadian owes $8,500 in consumer debt. Most credit card companies want you to have good credit BEFORE they give you any credit, which is why our next option might work better.
Leasing is another way to improve your credit. View our leases to find out what option suits you best. Making payments online will help to improve your score. Obtaining a lease is a relatively easy process, regardless of your current credit situation. You are essentially renting the item, with an option to buy it at the end of your term. Many people are surprised to find they can lease almost anything these days, for personal use or for their business. If you’re wondering whether leasing or financing is the right choice for you, there’s a simple formula:
It’s Depreciating – Lease it!
Vehicles, most heavy duty equipment, tractors, bobcats, boats, computers and machinery depreciate in value. These items are not worth as much at the end of the term as when you initially acquired them. If you choose to finance these items, will be paying the same amount for the item, even when it depreciates. We’ve all seen how much equipment can change from one year to the next.
Leasing vehicles and equipment, makes a lot more sense. Here are a few perks of leasing for you to consider (Click the + to expand):
[su_spoiler title=”Interest is tax deductible”]In some cases, even the payment is tax deductible! Speak with a lease broker to confirm what kind of lease you are getting and whether or not you can write off the payment.[/su_spoiler]
[su_spoiler title=”Lower monthly payments than financing in most cases”]
When you finance, you own the item right off the bat. The company you financed from wants to recover as much of the cost of the item as soon as possible so payments tend to be higher. Leasing the item means you are renting the item, with the option of purchase at the end of the term, there is much more flexibility on the payment amount in this scenario.[/su_spoiler]
[su_spoiler title=”Keep technology current with ease”]
Say for instance you own a business with multiple fleet vehicles. Vehicles are one of the fastest depreciating items out there! It doesn’t make sense to dump thousands of dollars into owning vehicles when 2 years from now they are going to be worth half of their original value. It makes much more sense to lease the vehicles at a reasonable monthly payment for a shorter term, then at the end of the term, trade up to the newest model again.[/su_spoiler]
[su_spoiler title=”Hold on to more cash”]
Many people hold the opinion that paying for your purchases in cash actually makes more sense, why would you want to accrue debt if you have the cash on hand? Let’s pretend you have $100,000 in the bank and you want to purchase a semi truck that costs $90,000. If you pay cash for the truck, you’ve just left yourself with $10,000 to cover the rest of your business expenses. What happens if you get sick and can’t work for a month or some other expense comes up? You’ve got nothing to cover the cost. Not to mention that the return on your investment at this point is minimal.
If you had leased your truck, you maybe had to come up with $10,000 down payment, leaving you with $90,000 in the bank (which you could be earning interest on), plus you’re making a reasonable monthly payment with tax deductible interest AND you get to start using the truck to get income coming in right away! [/su_spoiler]
How do I get a lease?
Whether you are looking to lease something for personal use – such as a car, truck, boat, or RV – or for your business – such as an excavator, bobcat, trailer, semi truck, etc – the lease brokers at Connect Lease can help.
Step 1: You find the equipment/vehicle you are looking to acquire.
Step 2: Fill out our brief application.
Step 3: We get you a lease.
We will find you the lowest possible interest rate and work with you to put together a monthly payment plan that works for you. Give Connect Lease a call today!
Toll Free: 1-877-860-4140
It’s Appreciating – Finance it or purchase it!
Houses, property, buildings, stocks/bonds, trademarks – these are examples of appreciating assets (most of the time). If it appreciates in value, it is best to own the item. When you take out a mortgage on your home, you are financing it, which is the smart decision to make. Very seldom do homes depreciate in value.
This post has been updated 2/18/2018
Categorised in: Blog
This post was written by larry