Category: Finance

Your credit status is more or less the same as your health. Unless you keep on monitoring and evaluating how you are doing, you may find yourself in the red zone. In the UK, Experian, one of the major credit reference agencies (CRAs) has mapped out using data the average credit scores for 391 areas. When you key in your age and then select your region, you’ll get to know what the average score is for that specific area.

5 Steps You Should Take to Repair Credit

Depending on the CRA you use to assess your scores, you will find yourself in any one of the following 5 categories- Excellent, Good, Fair, Poor, Very Poor. If you lie in the ‘Poor’ or ‘Very Poor’ categories, you need as a matter of urgency, to repair your credit. If you fall in the ‘Fair’ group, your score is average meaning you have some work to do to push yourself up the pyramid.

As long as your score is less than 999 on Experian, 710 on TransUnion and 700 on Equifax, there is something you need to do. With a good credit score, you stand a high chance of getting approved for almost every credit you apply for, and you’ll also get competitive rates. In this article, you will learn 5 steps you can implement right away to repair and boost your credit score.

Check Your Credit Score

It is not practical for you to begin repairing your credit unless you first know where you stand. Running credit checks with Experian, TransUnion, and Equifax will give you an accurate view of where to start.

Apart from getting to know your score, use the credit report to check the accuracy of the information entered by the CRA. For instance, there could be accounts fraudulently opened under your name or inaccurate personal information.

You can dispute any erroneous information in your credit report by filing for a Notice of Correction with the concerned CRA highlighting the specific information you are contesting.

Pay Up your Bills on Time

Late or missed payments can put na massive dent in your credit score. On the Experian scoring model, payment history has a weighting of 35%. This means more than a third of your score depends on how well you keep up with your bills including credit card payments.

If you have a problem keeping up with your bills schedule, try automating your payments so that bills are cleared as they fall due without your intervention. In case all your bills fall on the same date, consider rescheduling them so that you can get a reprieve in between.

Be upfront with your creditors. If there is an option for alternative payment plans that can lower the monthly amounts payable, explore them. For instance, if you are experiencing financial hardship, credit card companies can reduce your instalments until you get up on your feet.

Repay your Debt

After payment history, the second-largest component in terms of impact on your score is your credit utilisation rate. The amount you owe in credit card debt divided by the credit limit you have available gives you your credit utilisation ratio.

While it is understandably difficult paying up your debt, you are much better off paying it piece by piece until you get it paid in full. For instance, instead of making only the minimum payments on your credit card facility, consider whittling the card balances down to zero.

You can also consolidate your loans to help you manage them better. Get a loan that can help you pay off all other debts so that you can only remain with a single obligation to service. You can take a competitively priced non guarantor loan to help you clear your credit card balance.

The beauty with strategy is that these loans do not appear on your credit report hence won’t affecting your score. On the other hand, when you pay up your credit card debt, you will receive a boost in your score.

Avoid Making Multiple Loan Applications Successively

When repairing your credit, the last thing you would want is multiple hard enquiries on your credit file within a short span. This means lenders are checking your credit status to help them evaluate if you are fit for their products.

As one hard enquiry after another hits your credit report, lenders will increasingly see you as a credit risk trying to save your skin by borrowing from multiple sources. The impact this has on your credit score can be huge.

As an alternative to borrowing from different sources, try shopping for one credit facility say an auto loan and then consider offers from different lenders. The scoring model treats this differently from opening a lot of credit cards in one go.

Consider Getting Help Repairing Your Credit

Other than working yourself lame trying to rebuild your credit all by yourself, you may want to try other strategies to quickly move you up the scoring ladder. Here are some of the ways you may want to look at.

You can become an authorised user in an account that is always paid up and in good financial shape. Ensure the primary user has an excellent record that you can piggyback on to rebuild your credit score.

When applying for credit, consider getting a cosigner with good credit standing. The joint consideration by the lender may increase your chances of getting approved and boosting your score.

The third strategy you can use is that of opening a secured account. In this account, the lender requires that you put in an amount of money against which they advance credit. You can not be issued with credit card debt that exceeds the amount you have in the account. This ensures you are always secured, making you a responsible borrower.

Conclusion

While a bad credit score isn’t something to be proud of, it shouldn’t weigh you down either. With a solid stepwise credit repair plan, you can improve your credit score and take it as high as you want to. Starting by knowing where you are at and facing the situation as it is, will firm your steps and point you in the right direction.

What You Need To Know About Letters Of Administration

Dying is not only the process of one person leaving this earth. What they leave behind has to be administered by the ones living, so the legacy of the deceased is safe after their death. The “Letters of Administration” are there for the same cause. Their presence ensures that if a person has died without leaving a will, their property is handed over to the right person. Any person is given the “Letters of Administration” will be allowed to manage the deceased person’s estate. Keep reading to find more about Letters of Administration.

Who Can Apply

A person’s spouse or their closest living relative can apply for the Letters of Administration. However, as the law is lenient regarding who can inherit and manage the deceased person’s “Estate,” almost anyone can apply for the Letters of Administration. But a court will always favor the spouse or living relative of the deceased person. Court also verifies that the person they entrust with the estate is a law-abiding citizen. However, as per the law, no foreigner can apply for the Letters of Administration. You can also find more about letters of administration at State Trustees.

Difference From Probate

Probate is only made when a deceased person named someone in their Will. Probate is an application that the executor files. However, the Letters of Administration are only requested by people when the deceased person has named no one in their Will. The Letters of Administration would give the complete authority to the receiver in the same way if they were named in the Will.

The Meaning Of Intestate

Intestate is the word used to indicate the person who died without writing a Will. This word is also used for those who had written a Will before leaving this world, but their Will doesn’t dictate who will inherit their property. Another use of this word is for a person who died after signing a Will, but their Will doesn’t declare the authority for a specific piece of their property.

If A Will Is Discovered Later

There are various circumstances a Will doesn’t show in front of the court at first. The court decides on granting the estate to a person with the Letters of Administration. But a Will may be found out later, and the court may be notified of it. In such a case, the court will be entitled to revoke its decision to grant the Letters of Administration. They will reallocate the property to the person who the deceased person named in their Will. The person who was given the Letters of Administration will be revoked from access to the property.

The Application Process

Applying for the Letters of Administration is difficult, but conditions can differ from person to person. The first step is thoroughly checking for a Will left by the deceased person. The court can verify that a no Will was found during the search. The next step is publishing a Notice of Intention on the website of the Supreme Court. You can then complete your application and file it to the court after 14 days have passed since you published the Notice of Intention.

Economics

Otaviano Canuto on Commodity Price Cycles

Otaviano Canuto, Policy Center for the New South

Commodity prices go through extended periods during which prices are well above or below their long-term price trend. The upswing phase in super cycles results from a lag between unexpected, persistent, and upward trends in commodity demand, matched with a typically slow-moving supply. Eventually, as adequate supply becomes available and demand growth slows, the cycle enters a downswing phase.

The latest super-cycle of commodity prices, starting in the mid-90s, reaching a peak by the time of the global financial crisis, and getting to the bottom by 2015, can be seen as associated to the developments of globalization that we have already dealt with in this series. More recently, some analysts have spoken that we might be on the verge of a new cycle, super-cycle or not.

Budgeting

The Benefits to Renting Commercial Real Estate

It’s not a big surprise that the real estate market is hot right now, especially in key business areas like California. This applies to both residential and commercial real estate. As we’ve seen, rental trades adjust with the times, but until the bubble bursts, you should consider your options for commercial real estate in your area available for rent.

The Benefits to Renting Commercial Real Estate

There are many shared working spaces that can be home to your business for a while until you grow enough to be able to purchase your own commercial real estate property. Here are a few reasons as to why it could be the best option for you and your business until that time comes.

Flexibility

The world is uncertain, so it’s really important to be flexible, which is one of the major pros of leasing a commercial property. Renting office space allows you to be flexible without having to make any major commitments. If you need more space, you can seek it out, but if you need to scale back it’s easy to do that as well. If most of your staff is now working remotely, you can still have a space for them to go if they want to have a quiet place to work. Renting commercial office space can be flexible in a financial capacity as well, allowing you to pay based on space and duration.

Financially friendly

Buying office real estate can be quite expensive these days, so in real estate, “boring” is good, as is stability. The option to rent office space allows you to still have a location in a prime spot without footing a major bill for it. Renting also minimizes your financial burden, since you don’t have to pay for the other costs associated with running an office. You can then use the money you’ve saved from these costs to invest in growing other parts of your business, or creating a savings goal for eventually purchasing an office space.

Professionalism

Having a physical location for your business is huge in terms of your reliability and professional appearance. At first, you might think renting will reflect poorly on your business, but it’s a strategic plan that can help ensure a brighter future. No matter the arrangement, having office space looks more professional than meeting clients or employees in loud public places for meetings. Having a fully functioning office is the best way for your employees to focus and to show your clients and customers that you are serious about what you do, both now and in the future.

The world of real estate is difficult to navigate, and while it can be an extremely difficult task to find space that fits your exact needs, there are companies like Jeff Tabor Group that make it simple to find the right place for you and your employees. With prime, spacious locations and affordable options, there are many different opportunities for you to build your business for a successful future.

Top 8 Factors to Consider When Selecting Financial Advisors

Need a hand with setting financial goals? If so, if you’re really not alone, especially since there are almost $90 trillion of international assets under management right now. Not sure how to find an expert with financial advising experience? To tell you the truth, finding the right professional to help you handle your finances requires knowing your options. Take a look at a few factors to consider when selecting financial advisors below!

1. The Suitability Standard

If you’re looking for a financial advisor who will put your needs first, consider this. Financial advisory firms that meet the suitability standard address and disclose any “conflict of interest” they may have when representing you. On the bright side, most financial advisory firms will put this down in writing for future reference.

Besides this, it’s also essential to think about whether or not your firm is an RIA, or Registered Investment Advisor. That’s because they are held to a higher standard as well!

2. Upfront and Clear Fees

Let’s be honest. No one wants to work with a financial advisor who isn’t clear about their fees. That being said, figuring out the total cost of getting your portfolio together can be a difficult and confusing task.

On the other hand, finding a financial advisor you can trust means that they will be more than happy to break down all of their fees for you.

This can include everything from:

Hourly financial planning fees
Fees for managing your portfolio
Other hidden fees

Once you’ve made sure that all of your financial fees are as transparent as possible, you should be good to go.

3. Accurate Performance Reports

Now that we’ve got that covered, it’s also essential that your financial advisor of choice provides accurate performance reports. That’s because user-friendly transaction and holdings reports are the keys to managing your portfolio successfully.

To get started, you must decide whether you like to receive your reports on a:

Monthly basis
Quarterly basis
Semi-annual basis

We highly recommend that the more you review your financial portfolio, the better!

4. A Simple Investment Process

When you’ve found the right financial advisor for you, the next step is to ask them what their process for investments is. For instance, they may let you know which investment vehicles are products that will work in your favour.

In addition to this, your financial advisor should also let you know whether not you need to make any changes to your existing investment portfolio. Besides this, they may also ask you about your primary contact information.

In exchange, we encourage you to ask your financial advisor about their professional credentials and experience as well.

5. An Independent Custodian

Additionally, you should ask your financial advisor if they use independent custodians like:

Charles Schwab
Fidelity
TD Ameritrade

In case you didn’t know, independent custodians are great for providing additional asset reviews and records aside from your financial advisor. They’re also helpful in protecting your account from any fraudulent activity!

6. Honest Offerings and Services

You should also clearly understand the level of service that your financial advisor will offer. For instance, email and ask them if financial planning is included in their initial package. Also, find out what kind of financial planning software they use and whether or not you will have access to it. Believe it or not, this can potentially make or break your deal as well.

To get the ball rolling, here are a few more questions that you should ask your financial advisor:

Do they schedule weekly, monthly, quarterly meetings?
How long will it take to hear back from them?
Do they provide investment offerings for beginners?

Once you learn more about the financial services that you are looking for, picking the best financial advisor for you should be a piece of cake.

7. Events and Education

Another important thing to consider is whether your financial advisor provides any educational events. This is particularly helpful if you’re interested in learning and understanding your overall financial portfolio.

To get started, be sure to ask your financial advisory firm if they will take the time to answer any questions you may have during your regularly scheduled meetings. Also, you can ask them if they will continue to educate you on your financial portfolio as time goes on. Finally, covering complex topics such as asset management is vital to your success as well.

8. Life Transitions

Last but not least, do your best to choose a financial advisor who puts your life transitions as their top priority. This can include common event such as:

Getting married
Having children
Getting divorced
Losing loved ones

Ask your financial advisor if they have any experience dealing with customers who are going through difficult life changes.

If so, what did they do to help them? As long as you feel comfortable opening up to your advisor, you should be in a good position to put your finances in their hands!

Why Hire a Financial Advisor?

Sometimes, going through a major life event is enough to make you want to rethink your personal finances. Typically, this type of event will include some sort of major gain or loss of money.

So that’s why it’s important to seek a financial advisor if you are:

Close to retirement age
Receiving an inheritance
Getting married soon
Going through a divorce
Lost a partner
Helping your parents with their finances
Unsure of how investing works
Looking for a “second opinion”

Now that we’ve got that covered, choose your advisor wisely!

Selecting Financial Advisors Is Simple

Having a hard time finding the perfect financial advisor for you?

Here’s the thing: When it comes to selecting financial advisors, the process shouldn’t be complicated. Fortunately for you, we are here to help.

From comparing advisor fees to reading references and reviews, we’ve got everything you need to succeed. If you’re finally ready to talk to your advisor, don’t forget to read our handy guide first!

Looking for my financial and banking help?

If yes, don’t hesitate to read more of our blog right away.

Bonds

Région Ile-de-France is the first European Sub-Sovereign to issue an ESG benchmark bond with a negative yield on the financial markets

In order to fund its annual investment programme, in particular its regional recovery plan (€6.8bn between 2020 and 2022), Région Ile-de-France issued a new €500mn public bond on 12 April 2021.

Région Ile-de-France becomes the first European Sub-Sovereign issuer to print an ESG benchmark bond with a negative yield (-0.12%).

Investors demonstrated a massive support for this transaction, despite a negative yield, highlighting their confidence into the Région Ile-de-France’s credit. Indeed, the issuance attracted up to €3.5bn of interests, i.e. 7 times the amount announced, with a total of 114 orders. As a reminder, the previous record for the Région was €1.3bn in 2018 (in comparison, the raised amount was also €500mn). This record is now exceeded by +€2.2bn.

The Région keeps on diversifying its investor base with 16 jurisdictions participating in this new transaction. France, Germany, Italy and Switzerland accounted for more than 60 % of the interests. The bonds were allocated to buy and hold investors committed to sustainable financing.

This strong success confirms the Région Ile-de-France’s position as a European leader in sustainable financing. Since 2019, the Région is committed to issuing 100% of its funding programme in sustainable format, representing 80 % of its outstanding debt versus 35 % in 2015.

This is the first transaction of the Région issued under its updated framework for Green, Social and Sustainable bond issuance, aligning with the European taxonomy. In its Second Party Opinion, Vigeo ranked the use of proceeds, the selection and evaluation process, as well as the management of funds as “best market practices”.

Région Ile-de-France is also the first European Sub-Sovereign issuer to have engaged in the alignment of its framework to the upcoming European standards, contributing to the success of the transaction.

Despite the Covid-19 related economic crisis, the Région’s financial ratios will stay on a more favorable track in 2021 compared to 2015. The current margin rate would stand at 32.1% in 2021 (vs. 20.5% in 2015). The self-financing capacity doubled compared to 2015.

At the end of 2021, the outstanding debt will be in line with the 2015 level. As a reminder, between 2004 and 2015, it increased by an average annual rate of + 10 %. At the end of 2021, the debt payback ratio should amount to c. 4.5 years, way below its late 2015 level (7.5 years).

Thanks to a tight operational expenditure control since 2016 (- €2bn in multi annual expenditures), the Région Ile-de-France was able to face the Covid-19 crisis with a solid financial position.

The Région has received the best rating possible at this time in France, in line with the Republic of France (Fitch “AA” and Moody’s “Aa2”). Fitch affirmed its rating on Friday 9 April, highlighting that: “Ile-de-France has tight control of expenditure, as reflected by a continuous decline in operating expenditure in the last years” […] “Ile-de-France’s liabilities carry little risk” […] “[its] debt payback ratio remained sound in 2020” […] “despite the impact of the pandemic” […] “In 2020, net adjusted debt declined for the third year in a row”

In March 2021, Région Ile-de-France received the Capital Finance International – CFI.co – « Best sustainability bond issuer – France » award.

7 Invaluable Benefits of a Financial Planner

If you are serious about managing your money and accumulating wealth, the benefits of a financial planner can take all the stress and burden away from doing it yourself.

Sure, you could feel competent at investing and money management, but do you really have the time to go in-depth?

Yet, opting to work with a financial planner won’t suit everyone. There are pros and cons when using a financial planner or adviser, but we do think the benefits we’re going to discuss are well worth considering.

So let’s check out seven benefits of a financial planner.

1. Full-Time Professionalism

The first and obvious benefit of choosing to work with a financial planner is that they are full-time professionals, making investment decisions day in day out.

They will have a wealth of knowledge and plenty of tips about where to invest money. Plus, they can prove to you with past clients the sort of returns they achieve.

With all their training and know-how, it would be hard to compete with what they are capable of in terms of investing and managing your money wisely year on year.

Keep in mind, however, just because someone is a qualified and experienced financial adviser, it still doesn’t give you any solid guarantees that you won’t lose money. Going with a financial adviser is always a risk.

But typically, a financial planner will run you through different investment options with varying calculations of risk attached to them. Ultimately, you will be the decision-maker in the process. Your financial planner just handles the more technical aspects of your investments, as well as offering tips and advice.

2. Tax Advice

When anyone invests their money and makes capital gains on their wealth, tax is always an issue. In some cases, taxes can destroy the point of investing as they can simply erode away your gains to a pittance.

A financial planner should be experienced enough to know how to navigate the tax realm in your favor. They will tend to let you know various options you can choose to help reduce your tax burden, and they’ll be up-to-date on new regulations and changes in the law.

3. Objectivity

One key benefit of a financial planner is that they are likely to be a lot more objective than yourself when investing your money.

This benefit is strongly linked to the professionalism of a financial planner. They are just doing their job investing your money – they don’t have emotional attachments as you may have.

When emotions get in the way of investing, you’re treading on a pathway to ruin. Objectivity is essential to make wise investment decisions, and a financial planner will give you that.

They can either consult with you about investment decisions they’d like to take for you and explain them clearly.

4. Partnership

A financial planner doesn’t just get the keys to your car to drive off alone into the sunset. They will be available to discuss things with you and keep you updated on what’s going on with your hard-earned cash.

A financial planner is someone you can collaborate with, they’ll listen to you, and they’ll try their best to understand your wants and needs.

As well, the communication aspect of your partnership can be extremely beneficial. By speaking out ideas and strategies allowed, they can become more obviously viable, or conversely, something to avoid.

Plus, there are plenty of tips out there that will help you monitor your financial adviser.

5. Proactivity

This benefit is linked in a sense to the points of objectivity and professionalism.

A financial planner will be poised and ready to anticipate almost every eventuality that could happen in the markets and with your money. They don’t let their emotions get the better of them, which is easier for them since they are trained professionals.

They will also seek out new investment ideas that you might be aware of and get you tied up in some lucrative opportunities ahead of the curve.

Furthermore, they can implement any ideas that you may have with speed, which you might not be capable of doing yourself.

6. Organization

For many of us with busy schedules and limited time, managing the flow, saving, and investment of our money can become overwhelming.

It may be that you’re losing money that can be easily kept if your finances and payments are restructured in a more organized and logical manner.

Having control over your finances can relieve a lot of stress, and it could even be the case that you save more money by actually paying for the services of a financial planner.

It’s funny how they don’t properly teach us the ins and outs of taking care of money and investing at school. Now you have the opportunity to see your financial planner, not only as a money manager but a teacher of investing and finance too.

7. Relaxation and Free Time

Wouldn’t it be amazing to have all your financial worries set aside and dealt with by someone you can trust?

Most of us have enough on our plates already with work, family, and other commitments. Choosing a financial planner’s expertise will surely give you the peace of mind you deserve and some much-needed relaxation.

The Benefits of a Financial Planner

We’ve just mentioned only seven benefits of a financial planner. There are loads more benefits to take advantage of if you decide to take the leap and regain control of your finances.

It will be like starting off on a new journey into the unknown at first, but once you get your bearings and develop a rapport with your financial planner, we think you’ll be surprised at the positive changes that will occur.

Please check out our blog for more financial advice and wisdom.

8 Tips for Improving Your Credit Score Rating

Your credit score can have a major impact on what you can and can’t achieve in your life. In these modern times, your credit score rating can determine whether or not you get a car loan, a mortgage, an apartment, or even a job.

If you’ve got a less than perfect credit score, you don’t have to fret. While rebuilding your credit won’t happen overnight, you can take steps that will help increase your score over time.

Are you wondering what you can do to boost your score so it stops limiting you?

Let’s take a look at eight tips for improving your credit score rating.

1. Reduce Your Credit Utilization Ratio

There are a number of different factors that determine what your credit score is. 30% of your score reflects your credit utilization ratio. This ratio signifies the total amount of credit you have access to and how much of that credit you are using.

Basically, if your total credit limit is $10,000 and you have charged $2000 to your credit cards, you have a 20% credit utilization ratio.

In general, it is recommended to not use more than 30% of your credit card limit. Some experts even suggest keeping your utilization ratio under 10%.

Are you trying to learn more about credit in general? Check out the different types of credit here.

2. Fix Any Credit Report Errors

Occasionally, credit report errors can occur that can hurt your credit score. This means that even if you are doing everything right, you should review your credit report periodically.

If you do find any errors on your credit report, you will need to contact the credit bureau and file a dispute.

3. Request an Increase to Your Credit Limit

It is a good idea to periodically request a credit limit increase. Different credit card companies will have methods for this process, but it is usually a quick and easy thing. In fact, most companies will allow you to request an increase online.

The reason that this can help to improve your credit score rating is that it lowers your utilization rate.

There are a couple of things that you will want to keep in mind when you do this, though. For one, don’t request an increase on a new credit card, as many companies won’t give increased credit limits for new cards.

Secondly, you want to make sure your request does not require a hard inquiry on your credit report. Relatively small increases can typically be approved automatically. If the company asks for more information, declined the request, as they will likely do a hard inquiry which can negatively impact your credit score.

4. Make Your Payments on Time

The most influential factor that determines your credit score is your payment history. This means that it should be your highest priority to make your payments on time.

One of the best ways to ensure that you are never missing payments is by setting up automatic bill payments. This way, the money is withdrawn from your bank account on a specific day every month to ensure that you never have late payments.

5. Be an Authorized User on Someone Else’s Credit Card

Do you have a family member that has a higher credit score and you? If so, they can add you as an authorized user to their credit card. This can help to boost your credit score if they have made on-time payments, have a low credit utilization ratio, and the account history is long.

6. Use “Dormant” Credit Cards Every Once in a While

Over time, as you build your credit history, you will be able to qualify for cards that have better interest rates and better rewards. However, it is not usually a good idea to close your first credit card. Instead, make occasional purchases with that in order to keep it active.

If you completely stop using a credit card, the bank might close the card or reduce the credit limit. If you receive a credit line decrease than your credit utilization ratio will also go down.

It can also hurt your score to close an old credit card account. The only reason you might want to close an old credit card that you no longer you as if it has an annual fee. Even so, though, you might be able to downgrade the card to want without an annual fee without closing the account.

7. Diversify Your Accounts

It can be beneficial to your credit score to have a number of different credit accounts. Of course, you should only borrow money when it is necessary. However, it can demonstrate to lenders that you can manage credit responsibly when you have a variety of credit accounts.

This might mean having a home mortgage, a credit card, and a car loan.

8. Negotiate With Creditors With Whom You Have Outstanding Debts

Paying off debt will help to lower your credit utilization ratio. However, if you have been missing payments than your credit score can be negatively affected. You can often negotiate with credit card companies to have the negative hit removed from your credit report in exchange for paying off your debt in full.

If you go this route, remember to get the agreement in writing.

These Steps Can Help Increase Your Credit Score Rating

Boosting your credit score rating takes time, organization, and commitment. That being said, you can help to increase your number over time in a way that can offer serious benefits to many aspects of your life.

Are you looking for more resources to help you navigate the complicated world of finances? If so, check out the rest of our blog for more informative articles!

Self-Employment Tax Tips: 6 Important Things to Know