Boost Your Credit Score

Author Elane Odell Posted on October 13, 2023June 7, 2024Categories financial

DO YOU WANT TO BUY A HOME, GET A STUDENT LOAN, FINANCE A NEW VEHICLE, REMODEL THE BASEMENT, OR MAYBE USE A CREDIT CARD TO CHARGE BUSINESS EXPENSES? HAVING A HEALTHY CREDIT SCORE IS IMPORTANT TO BORROWING MONEY.  

Applying for a loan or credit card to finance a purchase is essentially asking a lender to trust that you’re going to pay them back according to the terms you agree upon. Landlords, insurers, and employers often use credit information to filter out applicants they may deem too risky. While it may not seem fair in some cases, lenders often see your credit score as a sign that the rest of your life is well managed and that you “take care of your business.”

At Canopy, we know you are more than your credit score. We are passionate about giving chances to people who have been turned away from other Financial institutions because of factors like poor credit.

However, we believe that empowering members to learn about finances will help them continue to grow. Being educated on the ins and outs of credit scores is a crucial step towards financial wellness.

Who decides my credit score?

In the United States, there are three credit reporting agencies. Experian, Equifax, and TransUnion. Each reports and calculates your score differently. 

What’s a good credit score?

Credit scores range from 300-850. This is the breakdown:

Excellent: 780-850

Good: 660-779

Fair: 600-659

Unfavorable: 500-599

Deficient: 300-499

Why does having good credit matter?

There are many Benefits to having good credit. Many areas of life from lending to employment benefit from good credit. Having good credit improves access and lower cost for:

  • Borrowing needs
  • Housing – whether renting or buying
  • Transportation   
  • insurance: auto insurance premiums can sometimes increase more for having poor credit than having an at fault accident on your driving record. 
  • Communication services

What makes up a credit score?

Your credit score is calculated by the credit reporting agencies with five factors. Each factor is weighed differently to make up the total score, with some factors like payment history mattering much more than credit mix.

TransUnion breaks down these five factors this way:

  • Payment history: 40% — the most important factor is to pay your bills on time. Don’t be late. Don’t miss payments. Setting up automatic payments can help with making sure you are always on time.
  • Credit utilization: 23% — credit utilization is based on the overall amount of money you’ve spent on your credit cards or accounts that have credit limits. In order to look “less risky” to lenders, don’t use more than 30% of your total available credit across all your accounts. Doing so may indicate that you’re dependent on borrowing or simply overspending based on your income and ability to pay back. Pay down balances as much as possible each month. To keep within under 30% utilization, pay off cards multiple times a month or spread payments out on a variety of cards.
    • Example: Alex has three credit cards. The first card has a limit of $1,000, the second a limit of $2,000 and the third a limit of $5,000. Together, her available credit is $8,000. To make sure she stays under a 30% utilization for her $8,000, Alex pays off her cards if she gets close to or above $2,400 in combined purchases across her cards.
  • Length of credit history: 21% — the longer your credit history, the more data is available to show creditors that you’re a good risk and you’ve proven it over time. Keep any credit cards you have active by making a purchase on each one every few months. Inactive accounts might be closed by the lender, which can reduce your average credit age and lower your credit score.
  • Credit mix: 11% — maybe you’re paying a mortgage, have paid off an auto loan, and pay off your credit card balance each month. The ability to manage a variety of types of credit adds points to your score.
  • Recent credit inquiries: 5% — creditors checking your credit before making a lending decision, can hurt your scores. It’s usually temporary but can cause your score to fall a few points. Wait at least 6 months between hard credit inquires. Soft credit pulls (like checking your credit score on a free website) does not effect your credit score as it is more of a guess rather than a precise number.

To learn more on how to Boost your Credit Score, please check out Canopy CU

California Builder Magazine’s Insight: The Latest Innovations and Trends

Author Elane Odell Posted on October 13, 2023June 7, 2024Categories people, politics, recreation, religion

The construction industry in California, frequently highlighted in the *California Builder Magazine*, is undergoing a perplexing transformation, marked by burstiness and innovation. The use of sustainable materials and building practices is a notable trend. Builders have veered towards eco-friendly options like recycled steel, bamboo, and reclaimed wood. Moreover, there exists an ardent focus on incorporating energy-efficient technologies into fresh construction projects; solar panels, smart home automation systems, and efficient insulation are just a few examples. This paradigm shift not only champions environmental preservation but also aids builders in long-term cost reduction.

In addition to this sustainability wave, the construction process itself has been revolutionized by technological breakthroughs within California’s boundaries. As the industry embraces Building Information Modeling, a significant shift can be seen. BIM facilitates enhanced communication channels whilst fostering collaboration amongst architects, engineers, and builders alike – all seamlessly intertwined with vivid visualization throughout each phase of construction. Eradication of errors and improved project coordination result in increased efficiency.

Furthermore, another intriguing aspect pertains to the burgeoning adoption of drones for surveying purposes as well as monitoring active construction sites across Californian landscapes – a phenomenon gaining exponential popularity among builders. These unmanned aerial wonders provide accurate information that greatly improves safety measures while simultaneously boosting productivity on job sites. This results in improved project outcomes and streamlined processes.

Key Challenges Faced by Builders in California and How to Overcome Them

California is a land of construction obstacles that can be confusing. Amongst these hurdles lies the towering barrier of exorbitant costs tied to both materials and labor. With an ever-growing demand for construction projects coupled with a scarcity of skilled workers, builders are left with no choice but to succumb to elevated wages and inflated material prices. In order to solve this puzzle, builders need to explore alternative options for sourcing materials, such as importing them from countries or states with lower costs. Furthermore, investing in technological advancements and automation can serve as a means to streamline processes, diminishing the necessity for excessive manpower while concurrently reducing labor costs and augmenting efficiency.

California’s rigid regulatory environment is another challenge that California’s builders face. The state imposes stringent building codes and regulations so as to guarantee safety and environmental sustainability. Although these regulations undoubtedly bear significance, they often engender delays and escalate expenses for those involved in construction endeavors. To navigate through this labyrinthine conundrum, it behooves builders to remain abreast of the latest building codes and regulations whilst also ensuring that their team encompasses experts well-versed in compliance matters. Cultivating robust relationships with local authorities alongside proactively seeking their guidance can likewise aid builders in streamlining the approval process while minimizing potential setbacks along their arduous journey towards completion