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Boost Your Credit Score

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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 Credit Score Boost

Modular Home Construction vs. Stick Built Construction: A Comparative Analysis

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Introduction

The construction industry has witnessed a significant evolution over the years,with innovation and technology reshaping the way homes are built. Two prominent methods that have gained attention are modular home construction and stick-built construction. While both approaches aim to create durable and comfortable living spaces,they have distinct characteristics that appeal to different preferences and needs. In this article,we will delve into the details of modular home construction and stick-built construction,comparing their features,advantages,and disadvantages.

Modular Home Construction: Precision and Efficiency

Modular home construction involves building a house in sections or modules in a controlled factory environment,after which these modules are transported to the construction site and assembled to create the final structure. This method offers several advantages:

1. Precision and Quality Control: Factory construction ensures precise measurements and adherence to strict quality standards. The controlled environment minimizes the risk of weather-related damage and allows for consistent workmanship.

2. Speed and Efficiency: Modular homes are constructed concurrently with site preparation,which reduces the overall construction timeline. The assembly process is swift,as modules are manufactured while site work is in progress,leading to faster occupancy.

3. Cost Predictability: Due to precise manufacturing processes and reduced on-site labor,modular construction often offers cost predictability. Fewer variables,such as weather disruptions,can impact the project timeline and budget.

4. Eco-Friendly Practices: The factory environment allows for efficient use of materials and reduces waste. Additionally,modular homes can be designed to be energy-efficient,incorporating sustainable technologies and materials.

However,modular construction also presents some drawbacks:

1. Design Limitations: Modular homes may have limitations in terms of design flexibility compared to stick-built homes. The standardized modules can restrict architectural creativity.

2. Transportation Challenges: The transportation of large modules from the factory to the construction site can pose logistical challenges,particularly in areas with limited access or tight spaces.

Stick Built Construction: Flexibility and Customization

Stick-built construction,also known as traditional or onsite construction,involves assembling a house piece by piece directly on the construction site. This method has its own set of advantages:

1. Design Flexibility: Stick-built construction allows for greater architectural freedom and customization. Builders can adapt designs to meet specific aesthetic and functional requirements.

2. Quality Control: While weather can pose challenges,onsite construction enables real-time adjustments and inspections. Skilled craftsmen can address issues as they arise,potentially enhancing the overall quality of the build.

3. Local Workforce Engagement: Stick-built construction relies heavily on local labor,contributing to job creation and community engagement.

4. Suitable for Complex Sites: Onsite construction is more adaptable to challenging terrains,irregularly shaped lots,and sites with limited access. This flexibility is not always achievable with modular construction.

However,stick-built construction also has its downsides:

1. Longer Construction Time: Onsite construction is more susceptible to weather delays,which can prolong the completion timeline. Weather disruptions can impact both project schedule and costs.

2. Cost Variability: Stick-built projects may experience cost overruns due to unexpected delays and changes during the construction process.

3. Inefficiencies and Waste: Onsite construction generates more waste compared to modular construction,and the potential for errors during construction is higher,leading to rework and material wastage.

Conclusion

In the debate between modular new home construction and stick-built construction,both methods have their merits and drawbacks. Modular construction offers efficiency,precision,and cost predictability,making it an attractive option for those seeking a faster and potentially more budget-friendly construction process. On the other hand,stick-built construction provides design flexibility,customization,and adaptability to complex sites,at the cost of longer construction timelines and potential variability in both budget and quality.

The choice between these methods ultimately depends on the homeowner’s priorities,the specific site conditions,and the desired level of customization. Some might prioritize speed and predictability,favoring modular construction for its streamlined processes,while others might opt for stick-built construction to achieve unique design features and accommodate challenging terrain.

As technology continues to advance and construction practices evolve,it’s possible that hybrid approaches will emerge,combining the best of both worlds to create efficient,customizable,and high-quality homes. Regardless of the chosen method,the key to a successful construction project lies in thorough research,clear communication with builders,and a comprehensive understanding of the advantages and limitations of each construction approach. You can finding a construction loan or construction loans for these types of homes with finance specialists.