Unimor Capital Corporation

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  • Protecting & Preventing Yourself Against Identity Theft

    Protecting & Preventing Yourself Against Identity Theft

    In an era where technology has become an integral part of our daily lives, it’s increasingly important to understand the risks and measures associated with identity fraud. Ontario, being Canada’s most populous province, is no exception. It is essential for its residents to be equipped with knowledge and tools to protect their identity.

    Identity fraud refers to the deliberate use of another person’s identifying information, usually for financial gain, through deception. This may involve credit card fraud, online scams, or even mortgage fraud. In 2021, the Canadian Anti-Fraud Centre reported over 50,000 instances of identity theft and fraud, with victims losing more than $107 million. And those are just the reported cases. Now more than ever, your identity is under attack as people look to seek out information for those unlawful purposes and it is important to protect yourself against those trying to get your information.

    How can you protect yourself?
    First, it is important to know that you are protected before something happens. It is important to look at your property insurance policy, as many insurance providers have included and offer additional coverages protecting you and your family in the event of identity theft. While some companies offer this additional coverage free, others have it optional for a minor cost which can be added to any homeowner or property policy, including a tenants policy. Typically, insurance providers will offer two variations of the coverage to specified limits of $25,000 and $50,000. While in the event of using this coverage would result in a ratable claim, depending on the severity of the claim, may be beneficial to you and your family.

    When you are protecting yourself, it is important to be vigilant and act cautiously. One of the most common ways of identity theft comes from the technique of phishing. This technique uses correspondence which looks official but is not. It comes in various forms from emails and text messages to phone calls and websites. These sites and communications are designed to look and sound similar to those of reputable sources, but will often times ask for personal information in which the real sites do not. In some cases, the phishing attempts will try to get the user to act swiftly and not think, anyone can be prone to these attempts.

    Below are several ways you can proactively protect yourself:

    1. Never provide your SIN, especially online or over the phone. Do not utilize it as a personal form of ID. Typically it will be only required during in-person scenarios. In the event someone is asking for it take precautions to ensure it is needed and it is a trusted source.

    2. Be cautious online and over the phone. Often if someone or something is rushing you, there is cause to be concerned and potential that you are being targeted for phishing. In the event that you feel you are, you can always end the call, or site navigation and contact the company or organization directly to confirm if it is valid.

    3. Keep your address current with all your mail in terms of bills, government agencies and any mail for that matter. Keeping your address current allows you to ensure that you are protecting yourself and that vital information from getting in the hands of the wrong people. You can take it a step further when protecting your address, when discarding mail you can cover up your address with ink, to ensure adequate protection. Shred sensitive documents and information when possible. Shredding is the safest way to protect sensitive information.

    4. Check and keep regular tabs on your credit cards as well as bank accounts. Credit cards are one of the most common forms of identity theft. With how quickly it is to make purchases, they can spend hundreds to thousands of dollars minutes. It is important to monitor your cards and ensure there are not any fraudulent charges and purchases. The quicker you report lost or stolen cards the better. With the popularity of mobile banking, you should easily be able to monitor purchases as well as freeze cards in the event they are lost or stolen.

    5. Take the precautions when you are online and signing up for various accounts. When it comes to passwords, it is important to not reuse passwords, while also utilizing multi-factor authentication when possible. When creating security questions, it is important to choose something which you will remember but also something that strangers would not be able to guess easily. This would include common questions like your mother’s maiden name, your pet names and other information in which you also may post online. It is also beneficial to continually update and change your passwords in-order to prevent your sensitive information being exposed and also prevents your passwords being subject to a data breach.

    6. Think digital, consider using a digital wallet as opposed to a physical wallet when possible. With how connected we are and how much we utilize our phones, making this switch will be an effective use of your time but also provides additional security measures in place. There is also the added benefit of not misplacing or losing your wallet and purse. Losing your wallet or bag, along with general transactions through a fraudulent or tapped terminal are common ways for identity theft. Typically, when utilizing a digital wallet, transactions are often tokenized and encrypted, making them safer.

    7. When possible, avoid using public Wi-Fi and when connected to public Wi-Fi, do not make any sensitive transactions such as mobile banking, logging into accounts or shopping. Typically, public domains are unsecure, and hackers can potentially see what it is you are doing and skim sensitive information from your session. This skimmed or stolen information can be utilized for fraudulent charges, opening false accounts and other forms of identity theft.

    8. While public domains are one thing, data breaches are another. While there is benefit to internet browsers, cellphones, computers, and other password storage locations, it is important to monitor those and ensure that your information has not been subject to data breaches. A data breach is when hackers target a database or organization with a specific attack to pry information from their online database. Sometimes you will get the alert on your iPhones or tablets that your information might have been subject to a data breach, and it is recommended that you take action to protect yourself. Going hand and hand, regularly changing your password, using strong passwords, utilizing a digital wallet and avoid conducting secure transactions on public domains are some ways in which you can prevent yourself from becoming a victim of a data breach.

    9. One of the other forms of data breaches and common forms of identity theft comes from malware. This comes from visiting an infected or untrusted website, downloading files with infected files embedded in the original download, or even simply opening an email attachment. Malware typically can install malicious software on your devices such as a keylogger, which monitors, tracks, and logs every stroke of the keys on your device. Being cautious on the links and websites you click as well as utilizing a password manager can help to prevent falling victim to malware.

    In conclusion, practicing caution and being aware of both your actions and surroundings are some of the easiest and simplest ways to take measures into your own hands and ensure that you do not fall victim to identity theft. In the event that you fall victim to identity theft, it is important that you contact your banking institution as well as local police and the RCMP’s Phonebusters by email at info@phonebusters.com or call 1-888-495-8501.

    Falling victim to identity theft happens, whether it was your fault or not, it is important to remain calm and not to be hard on yourself. Situations can be fixed over time, and it can also serve as a learning experience. As mentioned, banks, credit card companies and even your property insurance have put systems in place to help protect you from and prevent catastrophic losses.

  • How to Get a Mortgage with Poor Credit

    How to Get a Mortgage with Poor Credit

    Faced with high inflation and rising interest rates, more Canadians are finding it difficult to qualify for a mortgage. The problem can seem even worse if you struggle with poor credit. The good news is that even if your credit history is less than stellar, you may not have to put off buying a home, although you will likely pay more for your mortgage.

    Do You Know Your Credit Score?
    One of the biggest mistakes people make before getting a mortgage is not knowing their credit score before applying. Recent reports have revealed that more than 50% of Canadians have never checked their credit scores. If you’re only finding out that you have bad credit when you apply for a mortgage, it may be too late to do something about it.

    What is a Good Credit Score?
    While lenders can set their own minimum credit score guidelines, the following generally applies:

    • 800 or above: Excellent
    • 720 to 799: Very Good
    • 650 to 719: Good
    • 600 to 649: Fair or average
    • Under 600: Poor

    To obtain a mortgage with a Prime lender (banks and credit unions), you will likely require a credit score of 600 or higher. In fact, any mortgage with less than 20% down must also be approved by Canada’s mortgage default insurance providers, i.e., CMHC, who require at least one borrower to have a minimum credit score of 600 or higher. If your score is below 600, you will most likely need to deal with an alternative or private lender, come up with a 20% down payment, and be subject to a higher mortgage interest rate.

    How to Get a Mortgage with Poor Credit
    If you struggle with a bad credit score, there are still ways to qualify for a mortgage loan:

    Increase Your Down Payment Amount
    If you have bad credit, you can improve your chances of being approved for a mortgage by coming up with a larger down payment. While it’s possible to obtain a mortgage in Canada with as little as 5% down, if your credit score falls below 600, you won’t qualify for mortgage default insurance, and a 20% down payment will be required. A larger down payment has other benefits as well. By avoiding the hefty CMHC premiums, you will save thousands of dollars during the life of your mortgage.

    How to Find More Money for Down Payment

    • Gift from a family member. You can receive a part, or all, of your down payment as a gift from a family member. The lender will require them to sign a gift letter to confirm that the funds aren’t borrowed and that there is no expectation of repayment.
    • Withdraw RRSP funds under the Home Buyers Plan (HBP). If you are purchasing your first home, the government of Canada has a program that allows you to withdraw funds from your RRSP to use towards your down payment. The current withdrawal limit is $35,000. You will have to repay the amount you withdraw into your RRSP, but you have 15 years to do so, beginning in the second year after the year in which you removed the funds.
    • Delay your mortgage application. If you have tapped out all potential down payment sources and are still short, you may have to delay your mortgage application while you save more money. Can you hold off for six months or a year? Consider a side hustle to increase your income and your savings rate.

    Improve Your Debt Servicing Ratios
    In addition to having an adequate down payment and credit score, mortgage lenders must determine if you can afford to make the monthly mortgage payments. To do this, they use two calculations, Gross Debt Servicing (GDS) and Total Debt Servicing (TDS).

    Your total debt servicing (TDS) measures your total monthly obligations as a percentage of your gross monthly income. This includes your mortgage payment (PIT) and any other loans or credit card payments you might have. Your TDS ratio should not be more than 40%, although lenders may accept TDS as high as 44%.

    You can increase your approval chances by lowering your TDS. There are a few ways you can do this:

    Increase Your Income
    I alluded to this earlier but consider ways to increase your income. The easiest is to make more money at the job you already have, by asking for a raise, or getting promoted. If that’s not an option, think about a second job, keeping in mind that a mortgage lender will require you to be off probation before they can use your income for debt servicing purposes. Side hustle income is also great, but it likely can’t be used to qualify for a mortgage.

    Pay Down Existing Debt
    To improve your mortgage affordability, think about ways to free up cash flow by reducing your debt load. Among the worst culprits are huge vehicle loan payments, which have surged to record levels in recent years.

    Avoid Taking on Additional Credit
    You’ve heard the saying, “An ounce of prevention is worth a pound of cure.” It’s easier to say NO to more debt than dealing with the debt you already have (like that massive pickup truck loan.) If you’re in the market for a mortgage, it may be best to avoid taking on other debt. If you do, ensure it will not impact your chances of being approved for the mortgage.

    Go Through a Private Mortgage Lender
    If your credit is so bad that no A or B lender is willing to approve your mortgage application, talk to your mortgage broker about going through a private lender. Private lenders aren’t just ‘bad credit mortgage lenders.’ While they do a lot of bad credit mortgages, they also lend to borrowers who may have decent credit but whose application falls ‘outside the box’ of a bank or credit union.

    Your broker will bring up the private lender alternative before you do. Understand that private lenders charge much higher interest rates than A lenders, but the idea is to deal with them for a year or two and then move the mortgage to a prime lender.

    Obtain a Co-Signer
    If your credit score prevents you from getting a mortgage, another option is to obtain a co-signer. A co-signer must have very strong credit, a solid net worth, and enough income to support the mortgage on their own should the primary applicant fail to make the payments.

    The downside to obtaining a co-signer is that it ties you to that person financially, potentially for several years, in the case of a mortgage. It can also be challenging for the co-signer themselves, as they must include your mortgage PIT whenever they apply for credit, even though they are not making the mortgage payments. For these reasons and more, I don’t recommend using a co-signer, except in rare instances. But it is an option.

    Improve Your Credit Score
    Ultimately, if your credit score is standing in the way of getting approved for a mortgage from any lender, your only other option is to address your low credit score. And while it won’t happen overnight, there are several steps you can take to improve your score.

    How to Improve Your Credit Score
    If you are struggling due to poor credit, there is hope. Here are seven steps you can take to improve your credit score.

    1. Pay off any unpaid collection items. If you have unpaid collections showing up on your credit report, you need to settle them as quickly as possible. These are debts in such high arrears that the lender has sent them to a collection agency to pursue repayment. Generally speaking, no bank or credit union will lend money to someone with unpaid collections showing on their bureau. If you have multiple collection items, I recommend that you start by paying the lowest balance owed first.
    2. Pay your bills on time. If you have bad credit, continuing to make late payments will only worsen matters. Take steps to ensure timely payments going forward. Remember that most companies report late payments as soon as they are 30 days in arrears.
    3. Avoid making excessive credit inquiries. Each time you apply for credit, it counts as an inquiry on your credit report, and your credit score could drop as much as five or ten points, albeit temporarily. If your account shows multiple inquiries over a short period, say six to twelve months, potential lenders may view it as evidence of credit-seeking behaviour, and cause for concern.
    4. Keep Your Credit Utilization to a Minimum. Credit bureaus, like Equifax and Transunion, keep track of your credit utilization: the percentage of available credit you’re using. For example, if you have a credit card with a $10,000 limit and you carry a balance of $5,000, your utilization is 50%. When your credit utilization exceeds 30%, it’s a sign that you might struggle to manage your credit. Credit utilization is a determining factor for your credit score, so try to pay off balances in full, or at the very least, keep them under 30%.
    5. Don’t close longstanding credit accounts. One of the things that strengthen your credit score is the length of time a credit product has been reported to the bureau. When you close a longstanding credit card or line of credit, it may shorten your history and lower your score. And while it’s often beneficial to reduce the number of credit cards you hold, think twice before closing a longstanding account. If you feel like it’s the best choice, wait until after your mortgage application has been approved and finalized.
    6. Check your credit score regularly. What gets measured gets managed, but it could also be stated that what gets measured gets improved. If you check your credit report regularly, you can take corrective action if you notice any downward trends. You can also proactively correct errors and check your account for fraud.

    How Do I Find a Lender Who Will Approve My Mortgage?
    If you’re looking for a mortgage and are concerned about your credit score, your best bet is to consult a mortgage broker. Mortgage brokers have access to dozens of lenders, not just the big banks. They can shop your application to alternative and private mortgage lenders, in addition to the banks and credit unions, giving you the best chance for approval.

     

  • How to Set Up Your Holiday Spending Budget

    How to Set Up Your Holiday Spending Budget

    Did you know Canadians spent $25 billion last holiday season? And retailers expect shoppers to spend even more this year, despite the pandemic. That’s a lot of photo cards, candy canes, CD’s, and sparkly ornaments. But unless you plan on skipping Christmas this year, you’ll find yourself a part of that $25 billion machine. To enjoy the gift-giving season without any guilt-ridden overspending, set up your Christmas budget now—and then stick to it like sap on a fir tree.

    First things first: It’s time to do some digging into your Christmas budget. That means you need to ask yourself the following questions to see where you stand now so you can know how much to spend on presents later.

    How much do you have saved? Before you know what you can spend, see what you’ve got to work with. Hopefully, you started saving early. If not, we’ll talk about how to get extra money, so you don’t end up just doling out coal this year.

    What budget lines can you tweak? Even if you started saving early, you might still need more cash to cover all the Christmas costs. Look through your normal budget and figure out what budget lines can get trimmed down to free up gift money for your Christmas budget.

    Don’t know where to start? Here are a few nonessential budget lines you can probably cut back: restaurants, clothing, personal spending, entertainment, and gourmet coffee.

    How can you boost your income? If you’re able, boost your income for a couple weeks as a way to up your spending power. You could sell some things, take on extra hours at work, or start a side hustle. Get creative: Babysit so parents can go Christmas shopping alone, shovel driveways and sidewalks, offer gift-wrapping services… you get the idea!

    What Christmas traditions can you skip? You can save money this year by cutting some expenses—and that includes traditions that don’t really matter (like the annual office ornament swap). Be open and honest with your budget and your loved ones.

    Do you have a shopping list? If not, make one! You need to list out every person you’ll need to buy for and start brainstorming present ideas.

    How can you save on gifts? Shop sales. Use coupons. DIY and make homemade gifts. Skip random gift exchanges. These are just some of the ways you can save serious cash this Christmas on presents.


    How to Set Up Your Christmas Spending Budget

    1. Plan how much you’ll spend this year.
      Last year, the average Canadian was expected to spend $1,593 on holiday spending. And remember, retailers expect even more this year! First of all, you should never feel pressured to spend that much. You should spend what you’re comfortable with based on what you make, what you’ve saved, and what you can move around in your budget to get the job done. So, crunch some numbers and see how much you’ve got to play around with this year.
    1. Add the names of everyone who need a present.
      Once you’ve set up your budget, make a list of each person you have to buy for. Now, go ahead and assign spending limits to each person.
    1. Track your spending as you go.
      Want to know how you don’t overspend? You track. You track hard. You track often. Keep up with all that spending as you go.
    1. Move amounts around when needed.
      Oh no. You overspent on Mom by $5. What will you do? It has to come from somewhere. You can lower Dad’s line (sorry, Dad!) by $5 and use it to up Mom’s line. Move that money around until your budget balances again.
    1. Budget early for next Christmas.
      Here’s a quick shout-out to planning early—do it! Put a sinking fund in your budget as soon as January to start stashing away cash for next year’s Christmas. If you do it little by little, month by month, coming up with Christmas money won’t hit you like the reindeer that ran over grandma in that song that’s now stuck in your head!
  • Before Spending Your Emergency Fund, Ask Yourself These Questions

    Before Spending Your Emergency Fund, Ask Yourself These Questions

    We get so used to thinking of our emergency fund as cash we shouldn’t touch.  It can feel wrong to actually spend that money.  But the financial situation that’s cropped up as a result of the COVID-19 pandemic makes now a perfectly legit time to tap into your reserves.  Honestly.

    Your individual circumstance, however, may leave you questioning whether it’s really okay to be spending your emergency fund.  Maybe you have a spouse who is still working or enough money in the bank to stretch a few weeks longer.

    Here are four questions to ask before spending your emergency cash:

    Is this expense a need?
    This is a pretty obvious question but one that’s vital to consider.  When you use your emergency fund to replace lost income, you can’t spend like you used to.  Ask yourself: Is this expense necessary for my survival?  If not, it’s not worth draining your rainy-day fund for.  That may mean pausing your cable service or taking a break from tithing so you can eat, stay healthy and keep a roof over your head.

    Are there resources to help with this expense?
    In response to this financial crisis, various organizations and companies are providing assistance to those in need.  Banks are waiving overdraft fees and adjusting payment plans on loans.  Many credit card and mortgage companies are letting customers defer payments.  Food banks are trying to distribute more food.  Utility companies are vowing not to shut off service for those who can’t pay.  Any assistance you’re able to get will help stretch the money in your emergency fund.

    Do I have cash outside of my emergency fund?
    Before you start spending your emergency fund, look at other money you can use first.  If you have money saved up for a summer vacation or holiday gifts, use that cash.  If you have more money than usual left in your checking account because social distancing eliminated your entertainment spending, spend that.  Hold off on using your emergency fund until you’ve exhausted other viable options.  Avoid pulling money from your retirement accounts.

    Can I get what I need for less money?
    Your emergency fund will only stretch so far.  Be smart about what you spend by looking for cheaper alternatives.  Buy store-brand products instead of name-brand to save money on groceries or shop at a store that offers lower prices.  Even if those aren’t your normal habits, think of them as a temporary belt-tightening.  Reduce your utility usage to help lower your bills.

  • Simple Ways to Avoid Credit Card Fraud

    Simple Ways to Avoid Credit Card Fraud

    In today’s information age, your credit card information is at risk for theft. Fortunately, you can try to avoid credit card fraud by keeping your credit card information extra safe. Always be on guard for scammers who may try to trick you into giving up your credit card details. Below are 9 simple ways to avoid credit card fraud:

    1. Keep your credit cards safe.

    One of the simplest ways to avoid credit card fraud is by keeping your credit cards safe from thieves. Place your credit cards in a purse or wallet close to your body where it can’t easily be snatched away. If you’re shopping in a high traffic area, carry a smaller purse because it’s harder to steal or sneak into. For both men and women, carry only the one or two credit and debit cards you’ll be using that day. Leave all your other credit cards at home. Thieves can take pictures of your credit card with a camera or cell phone, so don’t leave your credit card exposed any longer than necessary. After you make a purchase put your credit card away immediately. Confirm you have your credit card back in your possession before you leave the store or restaurant.

    1. Shred anything with your credit card number on it.

    Don’t toss your credit card billing statements directly into the trash – they typically have your full credit card number printed on time. Shred them to keep dumpster divers from getting their hands on your credit card number. The same thing applies to old credit cards that have expired or been canceled.

    You can go a step further and put the shredded pieces in different trash bags for the extra eager thieves who might put shredded pages back together.

    1. Don’t sign blank credit card receipts.

    Always verify the amount on your credit card receipt before signing it. If you get a credit card receipt that has blank spaces in it, write $0 in those spaces or draw through them before putting your signature on the card. Otherwise, the cashier could write in an amount and send the purchase to your credit card issuer.

    1. Avoid giving out your credit card information.

    Only give your credit card number or other sensitive information on calls you initiate. Not only that, when you call your credit card issuer’s customer service, use the number on the back of your credit card. Don’t return calls to a phone number left on your answering machine or sent to you in an email or text message. It’s hard to be sure a scammer hasn’t left a fake number for you to call.

    Don’t give your credit card number to anyone who calls you requesting the number. Credit card thieves have been known to pose as credit card issuers and other businesses to trick you into giving out your credit card number.

    1. Be safe with your credit card online.

    Don’t click on email links from anyone that looks like your bank, credit card company, or other business who uses your personal information, even if the email looks legitimate. These links are often phishing scams and the scammers want to trick you into entering your login information on their fake website. Instead, go directly to that business’s website to login to your account. Make sure you’re cautious when you’re using your credit card online. Only enter your credit card number on secure websites that you can be 100% sure are legitimate. To be sure a website is secure, look for https:// in the address bar and lock in the lower right corner of your internet browser. Taking these extra steps will help you avoid credit card fraud.

    1. Report lost or stolen credit cards immediately.

    The sooner you report a missing credit card the sooner your credit card issuer can cancel your credit card and prevent fraudulent charges. Reporting your lost or stolen credit card as soon as possible lowers the likelihood that you’ll have to pay for any fraudulent charges made on your credit card. Write down your credit card companies’ customer service number now so you’ll have them if your credit cards are ever missing.

    1. Review your billing statements each month.

    Unauthorized charges on your credit card are the first sign of credit card fraud. If you notice a charge you didn’t make, no matter how small, report the charge to your credit card issuer immediately. Your credit card issuer will tell you whether you should close your account and get a new account number to avoid credit card fraud.

    1. Make strong passwords and keep them safe.

    Your credit card number may be stored in several places online. For example, you may save your credit card on Amazon, so you can make one-click purchases. Make sure you use strong passwords – a combination of upper- and lower-case characters, numbers, and even characters – and avoid writing or sharing your password.

    1. Check gas stations and ATMs for credit card skimmers.

    Credit card thieves sometimes place credit card skimming devices onto the credit card readers at gas pumps or ATMs. These skimmers capture and store your credit card information and credit card thieves come back later to get the device. Skimmers are placed on the regular credit card swipe, so if anything looks off about the place you’re swiping your credit card, go to another gas station or ATM.

     

  • How to Protect Yourself Against Identity Theft

    How to Protect Yourself Against Identity Theft

    Research indicates that identity theft is on the rise despite continued efforts to keep data secure and crack down on offenders. Big business and government can’t stop the problem alone. It requires the diligence and effort of every citizen to remain vigilant. Learn how to protect yourself against identity theft with these simple steps:

    Double-Check
    If you receive an unsolicited phone call, email or other correspondence, do not provide personal information. Instead, ask for a phone number and name so you can call them back, then verify that the information is the same as that provided on your billing statement or contact information. Sophisticated scammers are able to mimic email, websites and even toll-free call-back numbers so that they can entice unsuspecting consumers to provide information.

    Manage Passwords
    Always use encryption when doing online banking or shopping where you are providing private information. Also, take time to change account passwords frequently. Remember, never share your user names or passwords with others and create unique ones for each individual online account.

    Alerts!
    Use email alerts to notify you of unexpected withdrawals or large account transactions on banking or credit cards. This will help you to stay alert to potential fraudulent activity on your account.

    Wireless Warnings
    Although wireless hot spots in cafes and restaurants are convenient, they are a security nightmare. Avoid banking or conducting sensitive business via a wireless network. Instead, wait until you are in a more secure location or use additional encryption if necessary.

  • 7 Ways to Avoid Credit Card Fraud

    7 Ways to Avoid Credit Card Fraud

    Credit cards are convenient — until someone else gains access to your account. Credit card fraud is on the rise, and is becoming a real concern that can affect any Canadian. In fact, in 2012, the RCMP reported that 541,580 accounts nationwide had been compromised in some way. Here’s how you can protect yourself from credit card fraud.

    1. Ask for receipts for all of your purchases – If you notice charges that you didn’t make, report them to your card issuer right away.

    2. Keep your card in sight at all times – keep your card in sight at all times in order to prevent “skimming” — which happens when a thief passes your credit card through a card reader that records your information from the magnetic strip.

    3. Be extremely cautious over the phone – Unless you’ve initiated the phone call, don’t give out your personal information over the phone.

    4. Protect your credit cards when travelling – Carry your cards with you at all times, or make sure they are in a secure location such as your room’s safe.

    5. Be careful online – Make sure you enter personal information only on secure and reputable websites. Clear your logins and passwords, and be on alert for phishing scams.

    6. Use credit cards with enhanced security features – If your credit and debit cards don’t already use chip and PIN technology, you might be putting yourself at risk.

    7. Shred old documents – Make sure that you store all of your financial records in a secure place inside your home, and shred any document with your name on it before you toss it in the recycling bin. If you suspect you’ve been a victim of credit card fraud, follow these four steps:

    • Contact your credit card issuer to report any suspicious activity.
    • Contact your credit bureau to have a fraud alert placed on your credit report.
    • Contact your local police.
    • Report credit card fraud to the Canadian Anti-Fraud Centre.

    According to the RCMP, credit card fraud cost Canadian merchants $365 million in 2012 alone, and more often than not, those costs are passed down to the consumer. Make sure you’re doing your part to protect yourself and your money.

  • 10 Ways to Save Money on Your Credit Cards

    10 Ways to Save Money on Your Credit Cards

    Selecting the wrong credit card is a common mistake many people make. There are so many products out there that you have to first identify your needs in order to pick the one that works best for you. Next is reducing the costs associated with using that little piece of plastic.

    Here are 10 tips to help you do just that:

    1.  Pay your balance in full: Every month, every time. It’s the only way to guarantee you won’t spend a cent in interest.

    2.  Know the interest rate on your credit card: 28% of Canadians don’t know the rate they are paying, according to a 2007 survey of 4,000 Canadians by Credit Canada. Make it your business to find out.

    3.  Ask your bank about low-rate credit cards: If you can’t pay your balance in full every month, switch to a low-rate card. All it takes is a simple phone call to your bank. These no-frills cards charge 10-12% interest, sometimes even less.

    4.  Ditch the retail credit cards: Some chain store cards charge upwards of 30% interest, the very top rates on the credit card heap.

    5.  Don’t make cash advances on your credit card: The interest rate kicks in from the day you withdraw the money – there is no interest-free period. And some credit cards charge a higher interest rate for making these advances.

    6.  Make sure the reward program offers real rewards: If you aren’t paying your balance in full every month, your rewards are being cancelled out by the interest you are paying.

    7.  Negotiate the annual fee: Ask your bank to waive this fee. If you’re a longstanding customer with a good credit rating, you just might get lucky.

    8.  Know exactly when the bill is due: If you miss your credit card payment by even one day, you’ll have to pay full interest for that month. And you don’t need to wait until you get your statement to pay the bill – you can do that anytime.

    9.  Reduce the number of credit cards you have: If you aren’t paying off your balance each month on all your cards, minimize the damage and carry only one card.

    10.  Lower your limit: Some people just can’t handle having access to $10,000 or more on their credit card. If you’re one of them, call your bank and simply ask to lower your limit to prevent yourself from overspending.