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HomeMy WebLinkAboutThe Citizen, 2019-02-14, Page 10PAGE 10. THE CITIZEN, THURSDAY, FEBRUARY 14, 2019. MS –Though it’s easy to look at the technology industry and think this increasingly influential sector is what makes the world go round, something closer to the very core of the Earth may be what’s driving your economy. The agricultural sector plays a strategic role in a nation’s economic development and prosperity. From the earliest days, agriculture has been heralded as playing a crucial role in North American culture. Farmers who grow produce and raise livestock for meats and other products have long exemplified what it means to work hard and take initiatives to be self-sufficient. The symbiotic nature of agriculture and the economy is noticeable when examining the ups and downs of each. This is because food production and the potential of agriculture extends beyond the fields and local food stands. These resources impact supply chains and other markets. A strong agriculture base influences other employment sectors like food manufacturing, biotechnology, hospitality, machinery building, and much more, while a weak agricultural sector can adversely affect those sectors. While it can be difficult for residents of developed nations to visualize agriculture’s effect, one only needs to turn to impoverished and developing nations to see just how big an impact agriculture can have on an economy. Agriculture provides food and raw materials, eventually creating demand for goods produced in non-agricultural sectors. Also, food provides nutrition that can serve as the foundation of a healthy nation. Earning a living in agriculture strengthens purchasing power, which fuels other markets. MS –Credit is defined as a customer obtaining services or products before payment with the trust that payment will be made in the future. Credit affords people purchasing power they would not have if they had to pay for something outright at the time of checkout. In addition, credit enables men and women to finance expensive automobiles, buy homes or furnish those homes, contributing much to the foundation of a strong economy. A strong credit history and score is vital to personal finance. The steps people take concerning their finances can greatly affect their credit. Identifying the behaviours that may be detrimental and those that are beneficial can help customers re-evaluate their habits and improve their creditworthiness in the eyes of lenders. • Payment history:The financial advisement resource Credit Karma says one of the most important factors affecting credit scoring is payment history. Having a long history of making payments on time is essential for a strong credit score. Missed payments and a reputation for paying late can drive ratings down. It can take some time to recover from late payments. Failure to recognize late or missed payments may result in bankruptcy or tax liens, which are a heavy black mark on credit. • Credit utilization rate:Credit utilization refers to the amount of credit you have available, based on credit card limits, compared to the amount of credit you’re actually using by way of the balances on credit cards, advises the credit tracking company Experian. Lenders prefer to see ratios of around 30 per cent or less. To calculate credit utilization rate, divide your credit card balance by your credit limit. So if your balance is $600 and your limit is $1,000, that’s a 60 per cent utilization rate. • Number of accounts:The number of open accounts you have affects your credit score. Scoring models often look back and consider how many accounts are open and if there are any outstanding balances. • Length of credit history:The length of your credit history is another factor that affects your score, according to Investopedia. Credit scoring takes into account the age of your oldest account, if you’ve used that account recently, as well as the average age of all your accounts, including the newest. Closed accounts can stay on your credit report for up to 10 years, but when an account closes, this will affect your credit history average. Credit scoring rubrics will determine just how the ratio of new to old accounts and frequency of use will impact your score. Credit scores are important. Understanding them further can help people secure their financial futures. Agriculture’s role in economies What’s in a credit score? A number of things What’s your score? Knowing what goes into your credit score is the first and most important step in knowing how to improve it. Whether it’s payment history, credit utilization rate or the number of accounts you have, it all goes into your credit score, which is crucial if you ever want to borrow money. (MS photo) Susan Alexander CFP CLU CHS • Kim Perrier FINANCIAL ADVISOR www.sholdicefinancial.com PEAK Investment Services Inc. Thinking About Post-Secondary Education? Learn more about the Registered Education Savings Plan (RESP) and the benefits it can offer! Please join us February 20th 7-8:30 pm Brussels Public Library Meeting Room Please call Kim at 519-887-2662 or 519-887-9594 to reserve your space Light refreshments provided Watch for more seminars to come! Chartered Professional Accountant Certified General Accountant • Personal & Corporate Tax • Accounting & Bookkeeping • Agricultural Services Seaforth 519-527-1331 Email: wightman@bellnet.ca Brian E. Wightman JACQUIE GOWING ACCOUNTING Accounting, Income Tax & Business Management Services Monthly Bookkeeping Tailored To “YOUR” Needs • Reconciliations •Personal, Farm • Government Remittances Business & Corporate • Payroll • Electronic Tax Filing All services available on site or at our office jgowing623@gmail.com RR 2 Bluevale 519-887-9248 Fax 519-887-9454 Continued on page 11