eruvsLife

Ever gotten spam email telling you they’ll provide you free access to your credit file? Asking you to sign up for a credit monitoring service? Well, personally, I like to keep track of my own credit file personally.

In Canada, there are two organizations that track and report on your personal credit history – Equifax, TransUnion. If you visit their websites, they encourage you to sign-up and pay for their premium services, where you get instant access to your credit file, as well as added bonuses, like fraud monitoring, calculating your credit score etc.

While some people might find these bonuses useful, others just want to be able to see the information in their files. By law, these organizations are required to disclose to you any and all information they collect about you. Both organizations have tiny links indicating that you can obtain a file disclosure if you send your request in writing, and with proof of identity by Canada Post mail.

I order my credit file once every three months, and after any application for credit, i.e. in January, April, July & October. Also, since I took out an RRSP Loan, I requested a file disclosure in February.

It isn’t too complicated, just fill out the forms below (you can actually use the same form for both organizations), and attach two pieces of id, one of which should include proof of current residence. So for example, your driver’s licence (which includes your most current address) and your health card. If you driver’s licence has an alternate address, not the current one you are requesting they return your file disclosure to, you should also include a utility bill, or some other form of identification that indicates your current residence.

I’ll post later about interpreting the actual report you get in the mail.

Links to the forms:
Equifax Credit File Disclosure Form
TransUnion Credit File Disclosure Form

Links to useful sites:
Equifax Canada
TransUnion Canada Disclosure Page
MBNA Learning Center

I used to be one of those guys who just couldn’t understand why anyone would take a loan to contribute into and Registered Savings Plan (more details). Now, I have quite a few justifications as to why this is a very good option for you as long as you have any contribution room in your RRSP.

The facts are:

• You are less likely to save, unless you have an unavoidable payment you have to make every month. An RSP Loan will have a month amount automatically deducted the same time every month.
• RSP Loans offer very competitive interest rates! See below for a very good example.

Case Study:

Take out an RSP loan from ING Direct. The interest for the loan is 3.0% per year. Payment term is over 12 months

• A $5000 loan will result in a monthly deduction of $423.67, and total cost of borrowing of $81.64.
• A $10000 loan will result in a monthly deduction of $846.94, and total cost of borrowing of $163.28.

The most convenient option for you is to invest their RSP Loan in one of their Investment Accounts. They have several accounts offering varied benefits. One particularly attractive option is the RSP Short-term GIC Account, offering an interest rate of 3.0% with a rollover period of 90days. If you pick this option for the year, you essentially don’t pay a cent as borrowing cost for the RSP Loan.

ING Direct offers so many convenient options for saving money and investment. They are particularly a good choice for people who have problems putting away money, because of their Automatic Withdrawal Program. The money is taken away from your current account (at a schedule you define). While you maintain quick access to your money (via their Debit card or a one-day request deposit into your account), it segregates your savings from your day-to-day activities, thus allowing you the ability to resist temptations.

If you are interested in signing up, I highly recommend you do so via the link below, and enter the Orange Key during you sign-up. This gives you a $25 bonus – and I get one too : ).

http://www.ingdirect.ca/referafriend/
Orange Key: 16236353S1

Questrade

I’ve been using Questrade Inc as my broker since Jan 2009. Of all the stock brokers in Canada, in my opinion, Questrade is the best solution for the trader that has assets less that $100,000. The only other service that comes close in pricing is the CIBC Investors Edge.

Benefits:

1. It offers a Tax Free Savings Account (TFSA) that can be managed in US dollars (USD).  This eliminates the need to convert from USD to Canadian dollars (CAD) after every trade. You also put in and withdraw funds in USD. This is particularly useful if most of your portfolio is in USD.
2. It has a very affordable commission structure with no minimums (see below). As a result, your break even point for most trades are drastically reduced, and if so inclined, day trading becomes easier.

Drawbacks:

1. Their online portfolio management platform isn’t the best out there. It is basic and provides you with sufficient information to make trades. However, one click-trading isn’t possible on their basic platform. They do have other platforms for which you pay a premium and/or have minimum purchase requirements.

Cost Structure:

Stocks: 1 cents per share purchased: $4.95 min and $9.95max
Options: $9.95 plus $1 per contract

Questrade

Why Questrade?

Questrade Inc., Canada’s leading independent brokerage, provides Canadians with high-speed, direct access to the U.S. and Canadian stock and options markets as well as forex trading. Since its inception in 1999, Questrade has demonstrated its competitive leadership with a combination of high client service, the latest trading technology and competitive pricing structures.

Democratic Pricing Plan
With Questrade’s democratic pricing, all stock trades are 1 cent per share, minimum $4.95 / maximum $9.95.

Trading Platforms & Products
Questrade offers a wide range of trading products including stocks, options, foreign currency, and gold bullion, which for the first time in Canada and only available at Questrade, can be held inside registered plans.

Account Insurance
Questrade is a registered member of the Investment Dealers Association of Canada (IDA). All funds held and traded with Questrade are fully insured by the Canadian Investment Protection Fund (CIPF) for up to $1 million CAD in case of insolvency. We also provide additional insurance through our carrying broker, up to a maximum of $9 million CDN per client, per separate account. For a separate brochure on the coverage limits of CIPF click here.