The romantic cities

Don’t get me wrong, Australia has its fair share of gorgeous cities, from glamorousSydney to gentrified Adelaide to outdoor-loving Perth. But the thought of spending the morning in a Spanish class in inner city Barcelona before heading to the coast for a sunny afternoon on its Mediterranean beach sounds like a really exotic change to home.

Spain is a country blessed with gorgeous cities. My other top picks are:

Seville

Known the world over for its orange-lined streets, visit this city to experience some laid-back living.

Madrid

This is a bustling artistic and commercial centre with scorching summer temperatures.

San Sebastian

Heading northwards, this coastal city is the place to enjoy delicious snacks called pintxo.

Spain is a dream destination because it has so many different features to please any visitor. Its character as a nation and the character of its peoplemake it perfectly suited to those wishing to learn and perfect their Spanish. 

Deep Down Under - Claustral Canyon, Australia

Veteran guide John Robens (at far left) leads a soggy team through a moss-covered passage in Claustral Canyon, a few hours' hike from their exit point. Canyoneering is all about the serendipity of discovery, he says. "You walk for miles and suddenly you find yourself in this magical spot."

What Are the Long-Term Outcomes of Surgical Treatment for Spinal Stenosis?

Removal of the obstruction that has caused the symptoms usually gives patients some relief; most patients have less leg pain and are able to walk better following surgery. However, if nerves were badly damaged before surgery, there may be some remaining pain or numbness or no improvement. Also, the degenerative process will likely continue, and pain or limitation of activity may reappear after surgery. NIAMS-supported researchers have published results from the Spine Patient Outcomes Research Trial (SPORT), the largest trial to date comparing surgical and non-surgical interventions for the treatment of low back and associated leg pain caused by spinal stenosis. The study found that for patients with spinal stenosis, surgical treatment was more effective than non-surgical treatment in relieving symptoms and improving function. However, the functional status of patients who received non-surgical therapies also improved somewhat during the study.

HOW IS SPINAL STENOSIS TREATED?

Although there is no cure for spinal stenosis, regular exercise, medication and in some cases surgery can provide relief.

Exercise. Regular exercise can help you build and maintain strength in the muscles of your arms and upper legs (the hip adductors and abductors, quadriceps and hamstrings). This will improve your balance, ability to walk, bend and move about, as well as control pain. A physical therapist can show you which exercises are right for you.

Medications. Over-the-counter medications such as acetaminophen (Tylenol), or nonsteroidal anti-inflammatories (commonly called NSAIDS) such as ibuprofen (Advil, Motrin) or naproxen (Aleve, Anaprox), may also relieve pain. In addition, a rheumatologist may prescribe other medications to help with pain and/or muscle spasm.

Cortisone injections. Injections directly into the area around the spinal cord (known as epidural injections) may provide a great deal of temporary, sometimes permanent, relief. These injections are usually given on an outpatient basis in a hospital or clinic setting.

Surgery. Some patients with severe or worsening symptoms (but who are otherwise healthy) may be candidates for a "decompression laminectomy." This surgery removes the bony spurs and buildup of bone in the spinal canal, freeing space for the nerves and spinal cord. Afterwards, doctors often perform a spinal fusion to connect two or more vertebrae and better support for the spine.

Several recent studies have found that surgery produces better results than non-surgical treatment in the short term. However, results vary and, like all surgeries, this one also carries risks. These risks include blood clots in the brain and/or the legs; tears in the tissue around the spinal cord; infection; and injury to the nerve root. While surgery may bring some relief, it will not cure spinal stenosis or osteoarthritis and symptoms may recur.

Surgical Treatment for Spinal Stenosis

The goal of spinal stenosis surgery is to permanently decompress the spinal canal.

Types of spine surgery:

• Laminectomy: The most common type of surgery for this condition, laminectomy involves the removal of the lamina, a portion of the vertebra, to make room for the nerves. Some ligaments and bone spurs may also be removed. The surgery requires making an incision into the back and may include spinal fusion.
• Foraminotomy: The foramen is the area in the vertebrae where the nerve roots exit. The procedure involves expanding this area to provide more space for the nerve roots.
• Spinal fusion: This procedure is recommended in severe cases and involves joining the bones together with screws or bone grafts to provide spinal stability. It may be combined with laminectomy surgery. The surgery lasts several hours and can be done using one of two methods:

1. Bone is removed from elsewhere in the body or obtained from a bone bank. This bone is used to create a bridge between vertebrae and stimulates the growth of new bone.
2. Metal implants, such as rods, hooks, wires, or screws, are secured to the vertebrae to hold them together until new bone grows between them.

Interspinous Process Distractors for lumbar spinal surgery

The first of the kind was the X-STOP, which is a device inserted between the spinous processes – the small boney protrusions that stick out along the back of one's spine – to keep them opened up. It effectively opens the spinal canal as if one were in a seated position rather than a standing position, which relieves pressure on the spinal canal. One benefit is that this lumbar stenosis surgery is fairly minimal for the insertion of the device. Another benefit is that it can be done under local anesthetic.

However, use of the X-STOP device is relatively new compared to a lumbar laminectomy. The X-STOP clinical studies that have been done are relatively small and tend to show varying results as to success rates in terms of pain relief.

Skógafoss Waterfall

Skógafoss Waterfall, Iceland

Do the Effects of Cold Weather Really Cause Neck, Back and Joint Pain?

back painYou might have heard people saying that their joint and back pain is so much worse in the winter months.  You probably thought they might have been embellishing or being a little over dramatic.  The winter, does in fact, make your joint pain worse and can be quite debilitating for some.  In fact, some can actually predict the cold weather approaching by how much pain they are in.  This is actually a symptom, with an actual name, it is called Cold Allodynia.  People with Rheumatoid Arthritis, Osteoarthritis and Psoriatic Arthritis, just to name a few, are all subject to being in more pain during the winter months.

Let’s not go too much into it, but the main point is that the cold weather can actually shrink the tissues causing them to pull on the nerve endings, thus causing joint pain.  When it is cold your nerve endings are extremely sensitive and the muscles surrounding your nerves tense up.  When the barometric pressure drops, there is less atmospheric pressure to hold the tissues back and it causes more inflamed tissue to swell.  If you climbed to the top of Mount Fuji, the barometric pressure would drop and you would most certainly get joint pain in the neck or back.  This is called the pressure factor.

How does the Laminotomy procedure differ from a Laminectomy?

At Laser Spine Institute, we use an endoscopic approach to open up the spinal canal for laminotomies, which does not require general anesthesia. A laminotomy is a surgical procedure that relieves pressure on the spinal canal for the exiting spinal cord and nerve root. This increases the amount of available space for the neural tissue and thus releases the nerve(s). The term laminotomy comes from the Latin lamina (bony plate that covers the posterior arch of the vertebra) and -otomy (act of cutting, incision). A different surgical procedure called a laminectomy is used in traditional open back surgeries, which Laser Spine Institute does not perform. This procedure involves removing the lamina to increase the amount of available space for the neural tissue. The term laminectomy refers to the Latin lamina (thin place, sheet, or layer), and -ectomy (removal).

Here are some home back pain remedies

Most back pain goes away within some days, but again arises because you have not treated the pain from its root. To ease discomfort, home remedies also work effectively.

-> Exercise: Walking, stretching, swimming, and other gentle exercises can help you recover the pain easily. You must consult with a quality therapist to make sure you are not overdoing any of these exercises.

-> Drinking plenty of water: You may be surprised to know that just drinking several glasses of water in a day may work wonders to ease all of your soreness, including back pain.

-> Heat and ice: Applying cold packs to numb the pain and reduce swelling is the cost-effective way of getting relief from severe pain such as neck pain, lower back pain, sciatica pain. Use them for at least 20 minutes, many times in a day, and constantly for 2-3 days. After that, warm baths or using a heating pad can ease the discomfort of pain.

-> Follow online pain relief program: You may also get relief from online exercise programs, DVD’s, E: book, email coaching, free 12 months subscription to the monthly newsletter, free health related articles, recipes and lower back relief tips. Take advice from professional and maintain a program of exercise. This can clear up your pain and keep it away from returning in the future.

Certain nutrients are essential for maintaining a healthy back

Certain nutrients are essential for maintaining a healthy back...
Protein is necessary for firm supporting tissue, however animal sources will contain uric acid and are best avoided until your back is healed.
Spirulina and chlorella are excellent natural sources of protein, as are soy products.
Magnesium is essential for the proper contraction of muscles in the body and a deficiency of this can cause muscles to become tense, which could lead to back problems. Magnesium Complex is a good supplement.

What causes lower back pain in pregnancy?

Back pain is very common in pregnancy as pregnancy hormones relax your joints, ligaments and muscles, allowing them to stretch and move out of place. Your increasing weight will add to the problem, because it's natural to want to push your bump forwards. This puts greater strain on your back. 

Low back pain is the most common, but you may also have discomfort in your upper back, shoulders, between your breasts and in your ribcage. Some women suffer from sciatica, a sharp shooting pain down one or both legs. (Read more about causes of back pain in pregnancy here.) 

Walking, prolonged sitting or standing in one position may make your back pain worse. Pain in the coccyx (tailbone), a result of tiny fractures caused by a fall or a previous difficult birth, can also flare up in pregnancy - the only treatment is rest. Of course, you might have had back, neck or pelvic problems before you became pregnant. Pregnancy will tend to make these worse. You might be reminded of old injuries such as a previously fractured ankle or slipped disc, again because the hormones affect the joints, muscles and ligaments. 

HOME REMEDIES BACK PAIN

Home Remedies Back Pain #1: Ask someone massage the affected area with herbal oils using knuckles and  increasing pressure slowly. After a few minutes you will feel less discomfort. This gets rid of tension and relaxes the muscles in that area.
  
Home Remedies Back Pain #2: Every time you lift something, remember to bend your knees first, this will prevent your lower back from getting tense causing damage to your spine and back muscles.
Home Remedies Back Pain #3: Never twist while lifting this can have bad effect on your vertebrates.

Home Remedies Back Pain #4: Avoid lifting heavy objects in the last couple of weeks of your pregnancy. 

Home Remedies Back Pain #5: Do not sit in couches, always sit in firm chairs supporting the lumbar area with a pillow. This will help you keep your waist and lower back in the proper position.

Home Remedies Back Pain #6: Apply St. john’s wort directly to the back area.CAUTION: Do not suntan, this oil makes your skin very sensitive to the sun. 

Back Pain and Stress

The causes of back pain are varied, but stress often plays a part. Our bodies are bombarded with stress every day, whether chemical stress in the form of ingested or inhaled chemicals and toxins, emotional/mental stress in the form of worry, fear, anger and other thoughts or emotions, or physical stress in the form of overtaxing of certain muscle groups.

A typical “day at the office” includes plenty of all three types of stress: you may sit at your desk, hunched over your keyboard in an unhealthy posture for hours, anxious about meeting a deadline and skipping a healthy lunch in favor of a quick snack of preservative-laden junk food. All of these stressors take their toll on the body, and soon you find you have pain in your back and possibly elsewhere.

Finding ways to reduce or eliminate stress can go a long way to preventing back pain and problems. But in the meantime, learn about a safe, natural alternative to help address your back pain at its source.

What's the best position for sleeping?

The best way to sleep is on your side with your knees bent. You may put a pillow under your head to support your neck. You may also put a pillow between your knees.

If you sleep on your back, put pillows under your knees and a small pillow under your lower back. Don't sleep on your stomach unless you put a pillow under your hips.

Use a firm mattress. If your mattress is too soft, use a board of 1/2-inch plywood under the mattress to add support.

Eucommia for Your Aching Back and Joints

Traditional Chinese medical practitioners use eucommia bark for back and joint pain, especially in the hips and knees, and also to strengthen bones, tendons and ligaments. Eucommia helps heal tissue that is slow to mend after an injury or that has been weakened through stress. Western studies with rats confirm that both the leaves and the bark of eucommia contain a compound that encourages the development of collagen, an important part of connective tissues such as skin, tendons and ligaments. Although it can be used alone, eucommia bark is most often used in combination with other supportive herbs. The only practical way to take eucommia is as a supplement from a licensed provider. Patients taking blood pressure medications should consult with their health-care provider before taking eucommia or formulas that contain it.

TRY NATURAL PAINKILLERS to RELIEVE BACK PAIN

Unlike medications, natural painkillers won't upset the stomach. Fielder recommends devil's claw, which research shows is comparable to Vioxx for pain relief, and turmeric, known for its antioxidant and anti-inflammatory benefits.

Willow bark -- the active ingredient of which is similar to that in aspirin -- is more gentle on the stomach and is just as effective in pain management as NSAID rofecoxib.

Bromelain (derived from pineapples) and the ayurvedic herb boswellia provide anti-inflammatory benefits and pain relief.

SITTING PRETTY TO PREVENT BACK PAIN

Once all of that spring cleaning is done, have a seat – you deserve it! But if you plan on sitting for an extended amount of time, get up once an hour to stand and stretch out your back and other muscles. Place your hands on your lower back and gently arch backward, straighten up and gently turn side to side. Also, be sure to choose a supportive chair that is aligned for your height (your feet should be flat on the floor and your knees at 90 degrees). Otherwise, you may be adding extra stress – and pain – to your lower back. 

Teach CHILDREN how money can make money

 This is the lesson on investing, and it’s a lesson many of us can learn. It’s one thing to save, where you get perhaps 5% interest. But if your kids are going for short-term goals, they probably won’t see much compound interest happening. You’ll need them to make a longer-term goal, such as a trip once they graduate, if you have a teen-ager, or a down payment on a car, or even something a little smaller. Whatever the goal, teach them about how they can put their money in certain investments, and how those investments will grow over time.

That growth is their money earning money for them. It’s free money, almost, but the cost is not spending on other stuff in the meantime, and getting into the habit of investing the money. And it’ll help them get to their goals faster.

Tips for grandparents – ways to contribute to your grandchildren’s financial well-being

Tips for grandparents – ways to contribute to your grandchildren’s financial well-being:

• Introduce the concept of money to your grandchildren as soon as they are able to count. 
• Teach them the difference between needs, wants, and wishes.  Teach them to respect the value of money. 
• When giving them, consider giving money in amounts that can be put towards savings (e.g., five $1 bills, spend $3, save $2). 
• Consider opening a savings bank account or a money market mutual fund account in both your name and your grandchild’s. 
• Take advantage of money “teachable moments” when you spend time with your grandchild. 
• Set an example by being thoughtful in your own saving and spending habits – you are their role models. 
• The Youth & Money Survey found that 72 percent of students turn to relatives besides their parents for financial information – grandparents are included in this group!

Help your child learn to make choices

Giving your child a reasonable allowance is a good way to help him or her learn to make choices.

Larry Beltramo, a Certified Financial Planner, says he and his wife give their 8-year-old daughter three dollars a week, purposely not enough to let her buy everything she wants.

"She has to think a bit before she spends it. She has to tell herself, 'If I don't buy this candy now, then next week I'll have enough to buy that hair barrette that I like.'"

This may also help children as they get older and encounter peers who seem to have limitless funds. If your children are used to living on a budget, they may be less influenced by someone whose lifestyle is so different.

Encourage your children to allocate their pocket money

Encourage your children to allocate their pocket money.

On Roosterbank we encourage children to split their pocket money between their Wallet (think of it as a current account) and Safe (long terms savings account). We also offer them the chance to save for a treat in the Shop or make a donation.

Getting your children to think about what they do with their pocket money is a really important lesson in budgeting and will help them understand that you need to cover short-term, as well as long-term goals by putting some spending money aside. By stipulating this as one of the conditions when you give them the pocket money, you can reinforce the habit from the outset.

Do you have enough too much?

• Count the number of clothes you have and divide that by 7. That is how many pieces of clothing you have to wear each day to use everything you have over the course of a week.
• Count how many utensils you own (forks, knives, spoons, whisks, peelers, all of them) and divide that by 7.
• Count how many apps, songs, games and videos you have on your computer and divide that by 7.
• Count how many TV channels, radio stations, CDs, DVDs, and games and divide that by 7.

It is very likely that you could live and thrive with less than 50% of what you own right now. And if you need less than half of the stuff, you probably need less than half of the space, and less than half of the money it takes to maintain the stuff and the space. (insert light bulb moment here!)

Rent your stuff for money : Earn Money at Home

Take in a lodger
While most of us pay a fortune for our homes, it’s possible to make your home make money for you.

According to Santander, you could make as much as £289 a month from renting out a spare room. Under the government’s ‘rent a room’ scheme, you don’t need to pay tax on the first £4,250 you receive either, which means you could charge up to £354.16 a month without being lumbered with a tax bill.

Rent out a parking space
If you live close to a city centre, train station or football stadium and don’t use your parking space or garage, you’re sitting on a proverbial goldmine. Renting an empty parking place to a commuter or football fan could see you rake in the pounds.

Parkatmyhouse.com is a website where you can advertise your space free of charge and let frustrated drivers get in touch. A parking space in the West End of London, for example, can fetch £500 a month, while in a leafy suburb of Leeds a space could net you £100.

Rent your home to film makers
Hollywood can come to your home too, provided you have the right location. If you live in an interesting property, you could bag upwards of £1,000 a day renting your home to film and TV companies. Ideal locations must have large rooms, good parking facilities and understanding neighbours. Ordinary homes are wanted too.

Teach YOUR KIDS good shopping habits

When shopping, teach your child to be a selective consumer. Discuss price versus product. For example, when you are at the supermarket, pick up a couple of boxes of cereal and say, “this one costs $2.50, and this $4.50. Which should I buy?” In age-appropriate language, discuss why you would – or wouldn’t – choose the less expensive box. 

At the checkout counter, hand your child the bills and allow him to pay for what you’ve chosen together. That action will help him understand that things don’t magically appear, but are bought. If you use a credit card for purchases, make sure you explain that there will be a bill at the end of the month that must be paid by a specific date.

Facts and myths about your credit score

Here are the myths versus the reality about what will and won’t harm your credit rating:

Myth: Being turned down for credit will harm your rating.

Reality: Being turned down for credit is not held on a credit report so has no effect on how you’re rated. What does have an impact is if you’re unsuccessful and then repeatedly apply elsewhere without finding out what the problem is.

Every search on your file that lenders make when they assess you leaves a footprint. Too many in too short a time can look like you’re in financial trouble, which makes you look like a risk.

Myth: Regularly paying off utility bills will improve your score.

Reality: You should, of course, always pay your utility bills. But not all utility companies share their information with credit reference agencies, so don’t assume that lenders will know that you’ve
had a faultless history with your energy company.

Myth: Working in a salaried job will improve your score.

Reality: The fact that you have a job that pays a regular salary is not on your credit report. However, it will form part of a credit application and being employed and paid monthly is a sign of stability, which lenders like. They will also ask about your income to ensure that you can afford any new borrowing.

Myth: Being arrested or having a criminal record will harm your rating.

Reality: This sort of information is not on your credit file.

Myth: Being on the electoral roll won’t improve how you’re rated for credit.

Reality: This is one of the easiest ways to improve how you’re rated. It lets lenders corroborate your address and identity and is a sign
of stability.

Myth: Having several cards will harm how you’re rated.

Reality: It comes down to how you use them. If you’re struggling to juggle payments, lenders will see this. But if you’re using less than 50% of your available balance, can afford payments and are making them on time, these are signs of someone who can sensibly manage their credit.

It’s often better to have several cards with a lower balance on each than the same total amount all on one card. For example, if you had five cards with £1,000 credit available on each and each card was £100 in debit, but you transferred all the balances to one and cut up the others, it would probably have a negative impact. That said, some lenders may perceive a risk if your available balance is far, far more than you could ever afford to repay.

Myth: Missing a credit card or mortgage payment won’t harm your score.

Reality: Missing repayments is one of the most harmful things on your credit report. Lenders want to know you are reliable and not always making repayments says the opposite. Missing one or two may not make too much difference, but if it looks like regular behaviour, lenders will shy away.

And remember that missed payments stay on your account for six years – so you could be storing up real ­problems for the future.

Myth: Paying off a credit card on time has no impact on your rating.

Reality: A strong history of regular payments and settling of accounts is exactly what lenders want to see.

Myth: Having a credit card will harm your rating.

Reality: If you don’t use credit, lenders find it hard to assess whether you would be a good person to lend to. Remember, they are looking for evidence that you are a safe bet.

Credit Scores Affect Interest Rates

Your credit score affects more than just whether you'll qualify for a mortgage. Your score also determines the interest rate you'll receive. The reason is simple: The higher your credit score, the less risk you pose to lenders. And with the less risk, lenders are able to offer lower rates. Think of credit scores and mortgage rates as a sliding scale. The higher your credit score, the lower your interest rate.

According to myFICO.com's FICO score and interest rate chart, typical rates on a 30-year, fixed rate loan run anywhere from 4.082 percent for a credit score of 760 to 5.671 percent for a credit score of 620. (This chart changes daily, so current rates will vary.) That may seem like an incremental difference, but in the world of mortgages, 1.5 percent makes a big difference in monthly payments. And your monthly payments are directly related to how much home you can afford.

How Does Bad Credit Affect Loan Availability and Costs?

While there are strict laws regulating maximum rates and fees even for borrowers with poor credit histories, having bad credit generally means paying more for home improvement financing. A bad credit history may be penalized in the following ways:

• Higher interest rates: Bad credit presents additional risk to lenders and must be compensated for or they have no reason to make the loan. Interest rates can be much higher than those available to an A-rated borrower, depending on the borrower's profile and the maximum rates imposed by regulatory agencies.
• Loan to Value: Borrowers with excellent credit might qualify for a loan of up to 100% of the value of their homes. However, borrowers with bad credit may have the availability credit (amount of home equity they can cash out) severely reduced.
•  Higher fees and Less Favorable Terms: Generally borrowers with bad credit are more likely to be charged higher fees in addition to higher rates. Additionally, prepayment penalties and other restrictions may be imposed on the loan.

Mortgage Payment Cap

A mortgage payment cap is the maximum allowable interest rate the lender can charge on your loan regardless of what happens in the market. Depending on your particular loan program, this is a percentage (usually 5% to 7.5% annually) that can be added to your fully indexed rate if the market warrants moving that high. For example, if your fully indexed rate is 8% and your annual cap is 6%, your loans life cap would be 14%.
Mortgage payment caps were designed to limit unrestricted increases by lenders and keep the borrowers payments at a manageable level. Some lenders impose payment caps, some impose interest rate caps and some lenders use both.

Have late payments removed by contacting creditors

Have late payments removed by contacting creditors.
If your first attempt is not successful, try again and work your way up the ladder to a manager. Be persistent, as each time you phone a new representative will answer the phone.

If you are successful and the creditor agrees to remove the late, be sure to request a letter. The letter needs to be on the company letterhead of the creditor, needs to be signed by an employee and the letter must document your name, address, account number, and the specific late payment or late payments that should be removed.

Additionally, be sure to obtain the name of the representative that you spoke with as well as a contact number and extension, just in case you do not receive the letter and need to follow-up.

Avoid credit repair scams

Avoid credit repair scams.

There is an entire industry of scam artists out there preying on people with bad credit. These so-called credit repair companies offer services promising to clean up the negative information on your credit reports. Fees range anywhere from $39 to hundreds of dollars per month. Essentially all these companies do is send dispute letters to the credit bureaus disputing negative (but accurate) credit information on your credit reports. Save your money and avoid these expensive, ineffective and often illegal programs.

What is a credit score and why is it important?

A credit score is based on a statistical analysis of a person's credit file and credit history, and represents the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from the three national repositories, Equifax, Experian and TransUnion. Your credit report includes information about whether you pay your bills on time and how much you owe to creditors. Serious delinquencies, such as collections, judgments, liens, bankruptcies, foreclosures, and short sales will also be reported. 

Credit scores typically range from a low of 320 to a high of 844. The higher your score, the more likely you are to be offered better credit terms. 

Pulte Mortgage will review your credit history and consider how much debt you have incurred, and how you manage your debt responsibilities. If there is more than one borrower for a loan, the credit scores of all borrowers are considered when applying for a loan. 

What factors could adversely affect my credit score?

There are many factors considered when determining your credit score. These factors can affect whether you can get a loan and the interest rate associated with that loan. Some factors that may adversely affect a credit score are:

• Amounts owed on credit accounts are high.
• Level of delinquency on accounts.
• Too many credit inquiries in the last 12 months.
• Too many accounts recently opened.
• Amount past due on accounts.
• Bankruptcies, foreclosures, tax liens and other public record entries.

How Can Credit Scores Affect The Price of a Loan?

Just as credit scores are one factor in determining if you qualify for a loan, they may also be a factor in determining the price of your loan. The price of a loan means the interest rate and the points charged by the lender and/or a mortgage broker. The price charged for a loan will be higher or lower depending on various factors.

Credit scores are used in determining the price of a loan because they are believed to be good predictors of the borrowers ability and willingness to repay a loan. Many mortgage loans are sold to investors, and investors will pay a more favorable price for loans they feel have a low risk of default. Fannie Mae and Freddie Mac use credit scores as their analysis when pricing loans they buy from lenders because of this very reason. Thus, applicants with lower credit scores may pay higher prices for their loans because of the higher risk of default and loss.

There are many other factors relating to an individual borrowers situation that may also affect the price of a loan, often even more so than credit scores. These include: the type of property securing the loan (detached single family residence, duplex, etc.); the amount of the borrower's equity in the property; the lenders costs to make the loan; and the type of loan selected. For example, a loan secured by a single family residence may have a lower price than a loan secured by a duplex because duplexes are more difficult to sell than single family residences. Similarly, the price of a loan where the borrower has made a 20% down payment may be less than a loan where the borrower has made a 5% down payment because the first borrower has more equity in the property and, thus, the greater incentive to make the payments on the loan.

What Is A FICO Score?

"FICO" scores are a type of credit score developed by a Fair Isaac & Company. FICO scores use credit bureau information to obtain a score which indicates how likely someone is to make their loan payments on time. Millions of consumers' credit bureau records were used to develop the scorecards, and all of the consumer data - not just negative information -was included to develop the system. FICO scores range from approximately 350 to 900. The higher the score the more likely someone is to make their payments. Similarly, the lower the score the more likely someone is not to make their payments.

Do not apply for credit you do not need:

Do not apply for credit you do not need: Whenever you apply for credit, the creditor will obtain a credit report from one or more of the three credit bureaus. Each such credit inquiry will stay on your record and will affect your credit score. Even if you are turned down for credit or change your mind and withdraw your application, your credit score will be affected. This is because each inquiry suggests that you are increasing the amount of credit available to you. Before you give your Social Security number to anyone, make certain you know how they are going to use it. A Social Security number is almost always required to run a credit report. But don't let the fear of inquiries stop you from shopping for the best deal when you need auto or home financing. Recently, the credit bureaus have recognized that borrowers may apply for credit at more than one place for the same transaction. Generally, the credit scoring companies will consider all auto or mortgage loan inquiries received it in a 14 day period as one inquiry sothe additional inquiries will not affect your credit score. And remember, if you order a copy of your credit report to make sure it is accurate, this will not show up as an inquiry on your record.

Credit Cards for Bad Credit

Looking for a credit card but have bad credit? While a little more limited, you do have options. If you have bad credit you may have to start out with a credit card with less attractive interest rates and lower credit limits, initially. If managed responsibly, even a bad credit credit card can give you the opportunity to rebuild and improve your credit in order to qualify for better rates and terms in the future.

An important note: Prepaid cards are not credit cards - no credit is offered by the card issuer. Prepaid cards do not impact your credit rating, and they do not report to the major credit bureaus.

If a traditional credit card is out of the question, a secured credit card may be your answer. These work by paying a certain amount down to establish a borrowing limit prior to obtaining the card. Secured credit cards are also a great way to rebuild your credit.

Individuals with bad credit can also try having a friend or family member co-sign on a credit card account, but this poses a risk because that person will also be responsible for any unpaid debt.

Key Benefits of Debt Consolidation

• Lower monthly payments. When you consolidate your debts, you may be able to obtain a lower overall interest rate than the combined rates on all your debts. You could also extend your repayment term to reduce your monthly payments. Remember, even if you extend your term, you can still pay more than the minimum monthly payment at any time.
• Save on credit card interest. Consolidating your outstanding credit card balances into a loan with a lower interest rate could reduce your interest costs substantially depending on the rates charged by your credit cards.
• Leverage the equity in your home to save even more. Using your home as collateral for a loan, you may be able to negotiate a lower interest rate for all your combined debts, and extend your repayment term on your debts over a longer period of time, making your payments smaller.
• One monthly payment. Consolidating your debt can simplify your finances by giving you just one monthly payment to make.
• Have your debt in one place. Centralizing your debt at one financial institution can save you time. RBC offers a range of products and 24/7 access to your accounts through online, mobile and telephone banking.

Candidates for Bad Credit Mortgages

The below items are the general guidelines that can be used as a rough rule of thumb when determining whether a consumer may be a candidate for a bad credit loan:

• A credit score below 620
• Two or more delinquencies of 30 days on a mortgage in the past 12 months
• One delinquency of 60 days on a mortgage in the past 12 months
• A charge-off or foreclosure within the past 24 months
• Bankruptcy within the past 24 months
• Debt to income ratio is over 50%
• Inability to cover family living expenses in the course of a month

However, it is overall creditworthiness that is not just determined by credit scores. A couple of missing credit card payments does not mean that a consumer is doomed to receive double-digit interest rates. The only way to know where one stands is to apply for the loan and speak to a professional specializing in mortgage loans

Setup Payment Reminders

Making your credit payments on time is one of the biggest contributing factors to your credit score. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.

Important tips to increase your Credit score

Here are some important tips to increase your credit score:

• At least once a year, review your credit reports from each of the three credit bureaus (Experian, Equifax, and TransUnion) for inaccuracies and file a dispute immediately if you find an error. You are entitled to obtain a free credit report once a year from each of the three bureaus. To obtain a free copy of your credit report, go to annualcreditreport.com External Link or call 877-FACT-ACT (877-322- 8228). It is important to note that your credit report does not contain your credit score. When you obtain your free credit report from each of the bureaus, you will be offered the option to purchase your credit score. However, you are not obligated to purchase your credit score in order to receive your free credit report.
• Pay your bills on time. Late payments can hurt your score significantly. If you have missed payments, get current and stay current. The more you pay your bills on time, the better your score.
• Keep credit card balances low relative to credit limits (30 percent or lower is recommended). "Maxing out" your credit cards means you have a very high utilization rate, which significantly lowers your credit score.
• Pay off debt rather than moving it around.
• Open new credit accounts only as needed; new accounts decrease the average age of your total accounts. Having accounts that have been opened a long time increases your credit score.
• Avoid closing credit card accounts because this also decreases the average age of your accounts.
• Apply for installment loans (mortgages, car loans, etc.) within a 30-day period because most credit scoring models will count multiple inquiries within a short period of time as only one inquiry.

Porting changes for Mortgage

Although increasing numbers of homeowners are requiring flexibility in porting a mortgage, as a sluggish housing market means sellers waiting to complete are sometimes having to move into a short-term rental property rather than risk losing their buyers, lenders are moving in the opposite direction.

Nationwide building society has made it harder for people moving house to port a mortgage from one property to another one. Borrowers who could previously redeem their old mortgage and take the same deal out with the building society on a new property six months later now have just a three-month window. They can also only take up that same deal again if they have told Nationwide of their intentions before redeeming the old loan – something that wasn't required previously.

Woolwich has also tightened its porting criteria. David Hollingworth of brokers London & Country said: "Now you have a 30-day window to redeem your mortgage on your old property and start it up again on your new one. Otherwise, Woolwich will only reimburse you any early redemption charges if you take out a different loan with it within six months."

Karijini National Park

Karijini National Park, Western Australia

Photograph by Ignacio Palacios

Fairy Pool, Scotland

Fairy Pool, Scotland