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(August 23, 2007) Half of Canadians do not know what factors can affect their credit score, according to a survey conducted on behalf of the Financial Consumer Agency of Canada, despite the near universality of credit facilities, ranging from credit cards to lines of credit. The study also found that only 15% had requested a free copy of their own credit report.

“Many Canadians don’t realize how important their credit reports and credit scores really are. How good your credit score is can determine whether you are eligible for everything from a credit card to a mortgage,” said Jim Callon, acting commissioner of the FCAC. “A low credit score can also have a big effect on your day-to-day life by increasing the overall cost of a loan, and even making it more difficult for you to rent an apartment or purchase a cell phone.”

One of the most common mistakes consumers make that can damage their credit score is applying for more credit cards than they really need, as the number of inquiries made by potential lenders can affect the credit rating.

To remedy the lack of understanding, the FCAC has launched a new online interactive quiz that allows consumers to test their knowledge of credit reports and credit scores, which is available at the FCAC portal, www.moneytools.ca.

There are three credit reporting agencies in Canada: Equifax, TransUnion Canada and Northern Credit Bureaus. Because they each collect and report data differently, consumers are encouraged to request their credit report from all three. The FCAC points out that it is a myth that requesting your own credit report can adversely affect your credit score.

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Manulife’s IncomePlus hits $2 billion in sales

(August 23, 2007) Manulife Investments has announced that its IncomePlus program has reached a sales milestone: $2 billion in the first 10 months.

“We couldn’t have predicted this much early success,” said J. Roy Firth, executive vice-president, Manulife Financial. “The popularity of these products with Canadians speaks to the current mindset of today’s boomer — they want protection when markets are volatile and growth when markets are good.”

So-called guaranteed minimum withdrawal benefit products provide investors guaranteed monthly income with downside protection. They also offer upside potential that can boost income payments, along with access to the market value of their funds if needed.

GMWB products have been available in the U.S. for about five years, but Manulife was first out of the gate in Canada, launching in October 2006.

Manulife’s chief rival in Canada, Sun Life Financial, quickly followed suit, launching SunWise Elite Plus in April 2007.

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Commodity prices sag in July

(August 23, 2007) The prices of many raw materials declined in July, as the Scotiabank Commodity Price Index fell by 0.7%, making it the second month in a row for falling prices.

Metals and minerals were the softest segment of the commodities market, as nickel, zinc and uranium more than offset strength in copper, potash and lead.

August is already shaping up to be the third month of declines. Many hedge funds have been forced to sell off their profitable holdings in commodities to cover losses on the sub-prime mortgage market.

“Metal prices finally succumbed to a widening credit squeeze in the United States and Europe in mid-August, with prices for zinc, aluminum and nickel dropping to more than 12-month lows on August 16-17,” says Patricia Mohr, vice-president, economics, and commodity market specialist at Scotiabank.

Oil prices remained strong in July, with West Texas Intermediate hitting $74.15 US per barrel, although August has seen a decline to $69.

Agricultural prices are expected to climb in the coming months, despite the completion of harvest season in the northern hemisphere, as projected stocks of wheat are expected to be the lowest in 28 years.

(08/23/07)