Three ways to improve your credit rating

Do you have a low credit rating? You may have had a few hard knocks, but you can improve your credit standing with a bit of patience and discipline. It won’t change overnight, but it’s important to take control of things right now; your efforts will be well worth it if you want to have a more secure financial future. Here are three tips to get you pointed in the right direction.

1. Pay your bills on time

Get into the habit of paying your bills before the due date. Even if you can only manage the minimum amount due on your credit card this month, make sure you pay it on time. You’re much better off paying the minimum on time than the full balance

How

If you have a stable budget and hardly any debt, this is the right time to start some kind of deliberate savings plan. Don’t wait a minute longer; the sooner you start, the sooner you’ll see your savings grow.

You don’t need to have a lot of money to begin saving. You can get going by opening a tax free savings account and depositing any amount you’d like to start with. You can deposit up to $5,500 annually in a TFSA; any investment income it generates is tax free. Even cash withdrawals won’t be taxed. The TFSA is a great tool to meet and late.

2. Don’t max out your cards

Don’t push the set limits on your credit cards. Experts believe that you should keep your credit utilization ratio (what you use versus how much you have to use) below 30 percent. This rule applies to each individual card, and to the cumulative debt of all your cards.

3. Limit your applications for credit

Each time you apply for a loan — a line of credit, personal loan, car loan, or credit card — your application appears on your credit rating. Multiple requests can negatively affect your score, as creditors won- der if all your credit queries are hiding a serious financial problem. even exceed your financial goals.

Are you wondering if you should go to one of those companies that promise to improve your credit rating? Be careful; Industry Canada’s Office of Consumer Affairs says that only your creditors themselves have the power to change the information that is recorded in your credit report. One thing you can do is order a copy of your credit report before you apply for a loan to ensure there are no errors. To do that, all you have to do is contact one of the Canadian credit bureaus, either Equifax (www. equifax.ca) or TransUnion (www.transunion.ca).

Another great way to start saving is to open a registered retirement savings plan. There are many eligible investments, and the interest rates are better than with regular savings accounts. Your contributions are tax deductible, and your gains are tax free until you withdraw them. Investing in an RRSP is recommended by financial experts as one of the most effective financial strategies for retirement planning.

A representative of a financial institution can help you determine your investor profile. This involves deciding how to spread your precious money among high- and lowrisk savings and investment tools. Once you have a better idea of your profile, you can follow an action plan that is tailored to your personal circumstances. On top of a TFSA and RRSPs, you may decide to buy some government savings bonds, guaranteed investment certificates issued by banks, mutual funds, stocks, and other financial products designed to give you worthwhile returns.

As part of a recent study on general education levels of teenagers around the world, the Organisation for Economic Cooperation and Development tested 29,000 15-yearolds on their financial literacy. The OECD asked teens from 18 different countries to answer a series of questions that would evaluate their grasp of basic money management skills, including understanding a bank statement, figuring out the long-term cost of a loan, and understanding how insurance works. The results showed that when it comes to money matters, young North Americans fall mid-range compared to their peers from other countries. This is particularly troubling in light of the fact that young people are going into debt sooner and in greater numbers in order to pay for further education. About one student in seven who participated in the test was unable to make even simple decisions concerning expenditures.

A few tips for parents

Here are four ways to improve your children’s knowledge of personal finances.

• Explain the difference between gross and net salaries, as well as paycheque deductions.

• Teach them to develop a healthy relationship with money through open and honest conversations about personal finances.

• Encourage them to start managing their own money when they’re mature enough.

• Suggest they manage the budget of an upcoming activity or a fictitious project. You could ask them to budget the next trip to the grocery store, a family vacation, or expenses related to a first apartment.

How to clean your car’s undercarriage

Your car’s undercarriage accumulates dirt, debris and road salt. It also periodically gets wet from rain, mud and snow, leading to rust. Spring is a great time to give the undercarriage a good cleaning. Here’s how to do it.

1. Lift the vehicle. Lifting your car with a jack makes accessing every part of the undercarriage easier. Skip this step if you have a lifted truck.

2. Remove the tires. This is an optional step, but it allows you to move more freely around the vehicle and get into all the nooks and crannies.

3. Rinse the undercarriage. Wash the undercarriage section by section using a pressure washer or garden hose with a spray attachment. Start from the front, moving toward the back. Hold the spray at - tachment or pressure washer wand at a 45-degree angle for the best cleaning action.

4. Clean stubborn areas with a degreaser. To get rid of persistent dirt and debris, spray degreaser on the undercarriage and let it sit for 20 mi¬nutes. Scrub with a brush and then rinse the surface.

5. Dry the undercarriage. Rust can develop if moisture is left behind on the metal. Dry every part of the undercarriage with old towels.

6. Apply a protectant. This helps protect the metal of the undercarriage against damage. It‘ll also keep it cleaner for longer.

If you don’t feel confident washing your car’s undercarriage, look for a local car wash that offers the service.

Spring tune-up essentials

After a long, cold winter, spring is in the air. This means it’s time to give your car a little TLC before cruising in the sunshine. Ensuring everything is in tip-top shape before you hit the road can help you avoid costly breakdowns. Here are eight essential spring tune-up tasks.

1. Battery. Most batteries last five to seven years. However, cold winters are notoriously hard on batteries. With warm weather on the horizon, ask your mechanic to check the condition of yours.

2. Windshield wipers. Ice, snow and freezing temperatures can take a toll on your wiper blades. Therefore, when the weather warms up, it’s a good idea to check your blades for signs of wear and replace them if necessary.

3. Tires. If you installed winter tires on your vehi¬cle, now’s the time to have them swapped out for summer ones. The rubber treading on winter tires wears out faster in warm conditions. If your car is equipped with all-season tires, inspect them for tread wear, cracking or other signs of damage and replace them if necessary.

4. Hoses and belts. Harsh winter weather can affect the life of your car’s hoses and belts. It’s best to have them inspected by a trusted mechanic for cracks, leaks, fraying and stretching to ensure they’re ready to go the distance this spring.

5. Filters. Ask your mechanic to look at your vehicle’s engine and cabin filters and replace them if needed. A dirty cabin filter can cause your air conditioning system to malfunction, and a dirty engine filter can put undue stress on your engine.

6. Brakes. Don’t wait for something to go wrong before getting your brakes checked. Have the pads and rotors professionally inspected to keep them in good working condition.

7. Lights. When you take your car in for a spring tune-up, have the mechanic check the turn signal bulbs, brake lights, headlights, marker lights and daytime running lights.

8. Fluids. Several fluids must be changed when you go through your spring tuneup routine. For example, the engine oil, power steering fluid, brake and transmission fluids, coolant and windshield washer fluid should all be checked and topped up as necessary.

When you’re ready to get a spring tune-up for your vehicle, contact a local mechanic to get the job done right and keep you safe on the road.