What Is A Good Credit Score?

Understanding Credit Score Range

First Published Date: March 13, 2016

Your credit score is a three digit number that reflects the well being of your credit worthiness or how efficiently you are managing money or debts. Various credit reporting agencies such as Equifax and TransUnion provide this information and Fair Isaac Corp. produces the most commonly used credit scoring algorithm known as FICO, although various other credit scoring models exist.

The credit score ranges are very similar for most of the credit scoring models and they can run from the upper 200 to upper 900 range. I will use the FICO score to illustrate what a good credit score is in this article, as FICO is the most widely used credit scoring model.

What is considered a good score or a bad score varies according to the lender and what type of loan is being sought because lenders have their own set standards to approve or deny you credit.

Here is a very general guideline for FICO score range (300 – 850):

350 – 629 = Bad

630- 689 = Fair

690 – 719 = Good

720 + = Excellent

The highest FICO score possible is 850 and not many are able to achieve that. However, anything above 720 in general is considered an excellent credit score and those who achieve it most likely will get approved for whatever they apply.

Although having a score above 800 is kind of like having an elite status in score, lenders usually treat those within the range from 750 to 850 the same way. In other words, if your score is 750 you will most likely get the same rate as someone at 820.

Canada Savings Bond

The Amazing Canada Savings Bond And You

Published Date: July 22, 2010

When you want to build up a good, safe investment for yourself, or you want to save money for a retirement without losing sleep, you should look at the Canada Savings Bond. The Canada Savings Bond is an investment instrument created by the government of Canada and it sells between October and April of every year. Issued through the Bank of Canada, it offers a competitive rate of interest and there is a guaranteed minimum interest rate on it.

Created in 1946 as Victory War Bonds, it was a safe way to invest and to save for Canadians who did not want to use mutual funds. The Victory War Bonds were just one of four different types of bonds that were issued including the Canada – Dominion War Savings Certificate, the Canada Fourth Victory Loan and the Dominion of Canada Victory Loan.

These Canada Savings Bonds became very popular and a great way to invest and they would often be bought for younger children as a gift that they could redeem years down the road. However, lately, bond sales have begun to fall because of the low interest rate environment causing yields to be lower, which means more people are going to stocks and mutual funds in order to get more money for what they are spending. During the 1980s, rates were as high as 18 percent, which yielded big savings, but these days the interest rate has fallen by so much that Canada Savings Bonds held by Canadians were no more than 10 percent of people. In totally, Canada Savings Bonds are worth $19.2 billion in terms of bonds held by Canadians.

There are many types of Canada Savings Bonds that you can buy. These include:

·      Canada Savings Bonds are purchased with regular and compounding interest varieties and you can cash them at any time. They come in denominations of $100, $300, $1,000 and $10,000 with the interest guaranteed for a year and then fluctuating for the remaining nine years until the Savings Bond reaches its maturity date.

·      Canada Premium Bonds are purchased with the same choices in interest as Canada Savings Bonds but they can only be cashed on the anniversary of the issue date, or within 30 days after. Other than that, they are pretty much the same as Canada Savings bonds except the interest rates differ slightly. These bonds are sold with interest rates up to the third each, with each year after having higher interest and the interest rate fluctuates for the remaining seven years depending on the condition of the market until the maturity date is reached.

·      Canada Investment Bonds were available for a time between 2003 and 2004 and are were not redeemable until they matured, and each one had three-year maturities.

There are also several plans that are offered through the Canada Savings Bond, which include:

1.    The Canada RSP, which is a no-fee retirement savings plan that, uses compound interest Canada Premium and Canada Savings Bonds.

2.    The Canada RIF, which is a no-fee retirement income fund that holds Canada Premium and Canada Savings Bonds.

3.    The Payroll Deduction, which is when employees choose how much they can have deducted off their paycheques in order to put into a Canada Savings Bond under the Canada RSP.

In regards to the rates that are used in the Canada Savings Bonds, with the exception of when the rate is fixed at the start of the bond term, the rate is always dictated by the market conditions. An example of this was seen in 2009 when there was a very low rate in the market, which meant that those who purchased the Canada Savings Bonds in that year having very low rates. Low rates mean that your bond is not going to increase in value by much, which is why the Canada Savings Bond market is not doing as well in terms of the number of Canadians buying the bonds.

If you want to withdrawal from your Canada Savings Bond, you can typically do so at any point from most of the big banks within Canada. If you withdraw within three months of issue, you typically will only get the face value of the bond back. What is meant by this is if you have a $10,000 Canada Savings Bond, then you will get $10,000 back. After the first three months, you get the face value plus any interest you have received on the bond. With the Canada Premium Bonds, you can redeem them one year and 30 days after issue, which is important to keep in mind.

You are going to be fully taxed since the Canada Savings Bond is seen as income at your current tax rate. This is why it is a very good idea to take your Canada Savings Bond and hold it in an account that is tax-deferred, like your Registered Retirement Savings Plan.

The Canada Savings Bonds are a very safe way to invest and a good way to build up money that you can use for your retirement. If the Canada Savings Bond grows at the 18 percent per year as was seen in the 1980s, then a $10,000 Canada Savings Bond over that ten years will go from $10,000 to $52,338 by the time the ten years is over. Even at a low of four percent per year, your $10,000 would grow to $14,802.

A safe investment that can also serve as a good gift for someone, the Canada Savings Bond is what you should consider if you are new to investing, or you do not want to invest in the riskier investments of mutual funds and stocks. This way you keep your money growing, albeit at a slower ate, while at the same time increasing your savings using nothing but the interest rate that exists at the time. Look into the Canada Savings Bond and see your savings grow without you having to do anything.

WestJet RBC World Elite MasterCard New Companion Benefits May Not Be Beneficial

WestJet RBC World Elite Card New Benefits

First Published Date: March 20, 2016

The review I wrote about the WestJet RBC World Elite MasterCard last year is one of the most popular credit card reviews on A Dawn Journal. So once I saw that WestJet updated this card with more benefits, I thought it would be perfect to write another piece on this.

In the past, the WestJet RBC World Elite MasterCard annual companion bonus voucher was good for an annual companion flight for $99 (plus applicable taxes, fees and charges) to fly anywhere in Canada or the United States, excluding Hawaii and Puerto Rico.

However, WestJet announced on March 1, 2016 that the companion voucher would have full access to anywhere WestJet flies, including Mexico, the Caribbean, Hawaii and Europe. The price breakdown for the companion voucher is now:

– Canada and the Continental US for $99 (+ taxes, fees and charges)

– Hawaii, Mexico, Central America and the Caribbean for $299 (+ taxes, fees and charges)

– Europe for $399 (+ taxes, fees and charges)

Whether the companion fare will save you money or not (after paying the $99 annual fee) depends on where you go and how much other airline fares are going for at the moment. Here are 3 samples I compiled on economy class based on possible lowest fares (including sale) that I checked today (March 13, 2016) travelling on April 17 to April 22:

Toronto to Las Vegas for two using companion voucher: $774

Toronto to Las Vegas for two on another airline using skyscanner.com : $1000

Toronto to Honolulu, Hawaii for two using companion voucher: $1417

Toronto to Honolulu, Hawaii for two on another airline using skyscanner.com : $1288

Toronto to Mexico City for two using companion voucher: $1800

Toronto to Mexico City for two on another airline using skyscanner.com : $927

As you can see, based on the above three samples and several other samples I tried, including travelling to Europe, you may find that travelling on other airlines costs less than WestJet, even using a discounted companion voucher. However, because the companion voucher works on any fare class on WestJet, you may find it useful if you are buying the more expensive Flex or Plus Fare class.

Whether you should continue keeping WestJet RBC World Elite MasterCard or not depends on whether the companion voucher saves you money or not. Another friendly reminder (I also mentioned this in my first review) is that this card provides neither Trip Cancellation Insurance nor concierge service.

Real Estate In Cyprus

Buying Property In Cyprus

First Published Date : March 25, 2016

Have you ever thought of living in Europe? Well, chances are you may have thought about it, but have you though about living in Cyprus? While many have not thought about moving to Cyprus, you really should. It is a beautiful and warm country where you can get homes for a very cheap price. So, what do you need to know about Cyprus?

Cyprus is an island in the Eastern Mediterranean, which is located south of Turkey and west of Lebanon. It is the third largest island in the Mediterranean Sea and it is a very popular place for tourists. It has a high-income and advanced economy and it routinely ranks very high in the Human Development Index. It is also a member of the European Union, as of May 2004.

The Republic of Cyprus covers the entire island and parts of the water but the republic is actually split into two parts. Roughly 59 per cent of the island is under the Republic of Cyprus, while the rest is called the Turkish Republic of Northern Cyprus, but this is only recognized by Turkey.

Cyprus has a very warm climate with mild winters and hot summers. Snow can fall in the mountains, but generally Cyprus has the warmest climate in the Mediterranean of all countries in the European Union. Many may feel that Cyprus is a country that is not developed but this is not the case as it is highly developed and highly safe. It is a very safe country with very little crime and houses and cars are often unlocked.

Thanks to the warm climate, there is a steady stream of people coming into the country who are seeking to live and work on the island, especially since the country became part of the European Union.

The tourism industry is very strong and that means there is a huge demand for seasonal workers in the area and many of those seasonal workers choose to live in the country all year round.

So, if you are thinking of living and maybe working in Cyprus, what do you need to know?

When you are thinking of moving to Cyprus, you can rest easy in that it is very easy to buy property within the country because it is a member of the European Union. The first thing you need to do is to find a real estate agent in the country who can help you find the property you are looking for. Once you have the property you are looking for, you need to finance the purchase. If a lender is required to do the purchase, you will typically have to come up with a 20 per cent deposit, while the bank will pay the rest of the loan for you. However, you can only get this if you have lived in Cyprus for at least the last five years. If you are a non-permanent resident, then you will have to have a 40 per cent deposit and the bank will cover the remaining 60 per cent for you. For investment and commercial properties, it is a 50/50 split.

Depending on the requirements of the lender, the time to pay back the loan is going to vary. The term can be as low as 10 years, and as high as 30 years.

If you are wondering about the places to live within Cyprus, here is a brief rundown of the regions to buy real estate in Cyprus:

1.    Famagusta District: This district contains the most important port in the country, also named Famagusta. There is a population of 37,738 people in the district and the district is currently under control of Turkey with the Cyprus government acting in exile. It is a very beautiful area with a coastal nature park and high points along the sea that individuals can go hiking to.

2.    Kryenia District: This is the smallest of the districts and the only one completely controlled by Turkey. The main town is Kyrenia.

3.    Larnaca District: This district is partly occupied by Turkey and its main city is Larnaca. The district has the most important airport in the country and it has a mosque that is very important to Muslims.

4.    Limassol District: The main town of this district is also named Limassol and part of the district is under the sovereignty of the United Kingdom.

5.    Nicosia District: The main town in this district is the capital city of Nicosia. Turkey occupies the northern part of the city and the district features some amazing scenery and nearly everything you need from a major urban centre.

6.    Paphos District: This district is in the western part of the country, occupied completely by Cyprus with four main cities being Paphos, Yeroskipou, Peyia and Polis Chrysochous. The district occupies 15 per cent of the island and has a population of 76,100. There are many beaches, tiny isles, capes, coves and hilly areas that are extremely beautiful.

Cyprus is a very beautiful island and country that is stable, safe, with a strong economy and beautiful scenery. It is warm, it has plenty to do and see and you are close to Europe if you want to go over for a visit. Since it is a member of the European Union, it is very easy to travel to and from the island to Europe. Many are now thinking of buying property within the country because it is such a beautiful place to be and the property is so cheap. As a foreigner, you do have to have more of a down payment when buying property within Cyprus, but you need to remember that if you decide to live in Cyprus for a long period of time, then in only a few years you can have a home with less of a down payment. Living in this country will ensure you will enjoy the winters and the summers, and feel you have made the right choice to live there.

What Is A Hybrid Travel Rewards Credit Card?

Proprietary and Hybrid Travel Credit Cards

First Published Date: March 27, 2016

Travel rewards credit cards can help you travel faster and possibly also earn you free or partially free trips due to the generous returns they offer on daily spending. In general there are usually two ways these credit cards accumulate travel rewards points. These are proprietary rewards points and hotel or airline rewards points. However, there is another type of credit card that offers the best of both by providing more options called a hybrid travel credit card. Today I will talk about this new breed of increasingly popular credit cards called hybrid cards.

Proprietary rewards creit cards are tied to credit card companies’ own rewards points. For each dollar you spend, you usually collect one or two rewards points that offer usually a 1-cent value per point. For example, if you spend $100, you will get 100 points (if one point is being offered for each dollar) or $1 (100 cents). These accumulated points can be used against your credit card travel purchases and that’s how these proprietary points work. So what you see is what you get when it comes to proprietary points. For example, your return on your credit card purchases will be based on how many points the cards offer and you cannot exceed that rate of return. If you get 1 point per dollar, your return is 1 percent. If you get 4 points per dollar, your return will be 4 percent (if 1 point is valued at 1 cent).

The Airline or Hotel credit cards offer hotel or airline points, instead of proprietary points. The beauty of these points is that since there is no fixed amount attached, the rate of return can be an astounding 5-7 percent, if you are knowledgeable about the hotel or airline rewards programs and know how to redeem to maximize return.

Now, what if you want neither proprietary points nor airline/hotel points, but want it all? That’s where the hybrid credit cards come in. Hybrid travel credit cards give you the option and flexibility to redeem points as proprietary points or you can transfer them to other hotel or airline rewards points. So hybrid cards work for both consumers who want straightforward proprietary points with fixed return or for those who are knowledgeable about the ins and outs of hotel/airline rewards programs and want to maximize returns by converting points to hotel/airline rewards programs.

Two popular hybrid cards in Canada are American Express Gold Rewards Card and RBC Visa Infinite Avion Card. As consumers are looking for more options, expect more entrances of hybrid travel credit cards on the market in the future.