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Canada loses AAA rating
June 25, 2020
12:46 pm
Vatox
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Loonie said
So, what I think we all want to know is, will this trigger an increase in interest rates for us, however small?
And will it cause a decrease in value of Cdn dollar?
If so, would that not contribute to inflation as cost of imports rises?

BoC seems to think inflation is not in the cards. I don't understand that. Covid-19 may have dealt a body blow to our economy, but economic stagnation can co-exit with inflation, and it's nasty.

Can anyone explain?  

The Credit downgrade does not directly affect interest rates. It simply means investors may demand higher coupon rates for newly issued Canada bonds. Similarly, existing bond trading may force yields up and prices down because Buyers will demand a higher yield and any desperate sellers will have to sell at a lower price.

In terms of HISA and GIC rates, they are only affected by the BoC overnight rate changes and individual FI decisions. Inflation is the primary factor for BoC rate hikes and we have had 2 months of Deflation. We will need over 2.0% inflation before any rate hikes are on the horizon.

June 25, 2020
1:31 pm
Londonguy
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cruzinalong said
A year ago it was 894.
What do you do that it keeps it high?  

I don't do anything to purposely "work it" if that's what you mean. All I can lay claim to is having 50-odd years of spotless credit activity across multiple trade lines (e.g. various credit cards, term loans, leases, mortgages, lines of credit). I also don't churn.

Just for the record I wouldn't have even known what my score was (much less about the 900 part) if it weren't for the CapitalOne data breach. They paid for the TransUnion access, not me

June 25, 2020
1:55 pm
Dean
Slocan Valley, West Kootenays, BC.
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Londonguy said

I don't do anything to purposely "work it" if that's what you mean. All I can lay claim to is having 50-odd years of spotless credit activity across multiple trade lines (e.g. various credit cards, term loans, leases, mortgages, lines of credit). I also don't churn.

Just for the record I wouldn't have even known what my score was (much less about the 900 part) if it weren't for the CapitalOne data breach. They paid for the TransUnion access, not me  

Same here, Londonguy ❗

My TransUnion score (854) is considered 'Excellent'. sf-laugh

A score of 900 is 'Perfect' (the Best) ... Congrats ❗❗

Cheerio,

    Dean

sf-cool " Live Long And Prosper " sf-cool

June 25, 2020
2:01 pm
cruzinalong
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I had a data breach with Capital One as well. They paid for TransUnion access for two years. Not sure when it expires. I will just do things as normal. I have to be happy with an excellent score less than perfect. Enjoy the summer.

June 25, 2020
3:38 pm
Bill
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Loonie said
Of course, when clothes are made offshore (and so many other things), Canadian private sector jobs disappear; and the owners of those companies are very happy about it.
I don't worry much about public sector growth, as it's minimal considering population and I can always count on a periodic Conservative government to decimate it, but I do worry about the private sector abandonning the country and continually clamouring to pay even less in taxes to support the country.  

To me it seems to be the consumers who are very happy to buy all the cheap clothes, etc, they (not the owners) are the ones who freely vote regularly with their spending decisions to support offshore. Maybe we're just a bunch of "effective altruists" who believe when we spend $100 that sending a dollar to a 3rd world worker is more helpful to humanity than sending $20 to a 1st world worker, who knows?

Not sure there are any/many examples of conservative governments decimating (i.e. 10% or more permanent job cuts) public sector in recent years.

But you are right about large corporations abandoning Canada, been going on for quite some time, don't know why anyone would expect them to stay while advocating taxing them more (?), we all leave where it's clear we're not welcome or are just being used for our money, go where we're courted. Most Canadians vilify large corporations, it's a general mantra you hear all around you, then they don't like it when these corporations leave - ?

June 26, 2020
9:14 am
Doug
British Columbia, Canada
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Dean said

Londonguy said

I don't do anything to purposely "work it" if that's what you mean. All I can lay claim to is having 50-odd years of spotless credit activity across multiple trade lines (e.g. various credit cards, term loans, leases, mortgages, lines of credit). I also don't churn.

Just for the record I wouldn't have even known what my score was (much less about the 900 part) if it weren't for the CapitalOne data breach. They paid for the TransUnion access, not me  

Same here, Londonguy ❗

My TransUnion score (854) is considered 'Excellent'. sf-laugh

A score of 900 is 'Perfect' (the Best) ... Congrats ❗❗

Cheerio,

    Dean

  

It's more or less luck. Nothing really to brag about, personally. I'm super generous with my compliments, but this is nothing that needs nor warrants my congratulations. It all depends on the perfect utilization of authorized and available credit, right mix of installment versus revolving credit, payment history (this one is the easiest to control), and the timing of your credit bureau pulls relative to your outstanding balance(s) at the time it was pulled (i.e., if your payment date is the next date and your bureau is pulled the day before, you're still on time and everything). Also, TransUnion and Equifax can change their risk scoring methodology at any time, at will, which may or likely will affect your present score.

In actual fact, anything above 720 is essentially a "perfect" credit rating in the eyes of lenders. If you can hold it above 800, that is absolutely fantastic.

Even 680 will still qualify you for top, or near top, rates, and generally access to the highest hold release limits on your ATM and/or pulled EFT deposits.

600 is equivalent to no credit history. 620-679 are what I consider as 'fair to good'.

Cheers,
Doug

June 26, 2020
1:01 pm
savemoresaveoften
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either one is at 850 or 900, they would love to lend u money. However people with that kind of credit score usually dont need to borrow

June 26, 2020
8:36 pm
Doug
British Columbia, Canada
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savemoresaveoften said
either one is at 850 or 900, they would love to lend u money. However people with that kind of credit score usually dont need to borrow  

Very true! sf-cool

Cheers,
Doug

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