My Credit SUCKS!

[funkedelic2]

I have always been curious as to what my credit score actually was and I have always wanted to know what is in my credit report. I financial advisor at my bank recently told me that there was a "delinquent account" on my credit and that I should ask for a credit report.

She gave me the name of two different companies. Equifax and TransUnion. She told me that I could ask for my credit report to be mailed to me and request it over the phone, or simply go online and be able to see it immediately if I paid the fee that they charge. I came home, checked both of them out online and I have come to realize that my credit is.. well not doing so well.

It almost made me sick to my stomach to see how my profile is viewed and classified. It showed me that i have had 8 Revolving accounts since I have had credit cards/loans, etc. Out of all of the years and accounts, I have only had 3 payments all together that had been over 30 days late. If I didn't pay something it was either because I thought I had paid it, or I just completely forgot. I use to be really disorganized a few years ago.

I have paid off all those accounts and now just currently have a loan that has a few thousand remaining to be paid off. I am assuming my credit score is so low because I have had multiple credit cards at the same time with the balances near their credit limit. I have also applied for a lot of credit which I hear doesn't help much either.

I recently just cleared all of my credit card debt, made a big payment on my loan and am working towards bringing my credit score back up.

TransUnion rates my score at 594 and Equifax at 539. It says my credit worthiness is "Very poor". I don't understand why it is telling me that, because I have paid everything off that I have borrowed, never had an account closed due to not paying, and I have never filed for bankruptcy or have had any run ins with collection agencies. I am placed as "highest risk" and apparently I only have better credit than 9% of the Canadian population! Keep in mind that the 3 credit cards I paid off and closed haven't been posted in either system yet. The amount outstanding on my loan had not been updated either.

According to my score and the bracket that I fall under, 60% of the people like me have a delinquency rate!

In my TransUnion profile it doesn't state that I have a delinquent account but when I look at everything, it doesn't seem to be listed. The financial advisor at the bank told me that a lot of times, they are simply mistakes. I called them and they told me that I could file an investigation but that their systems were down for the day so I would have to call tomorrow.

So I guess what I am asking is if whether or not this "delinquent" account or mistake on their part is bringing my credit down even further?

I am now trying to take all of the steps possible to raise my score as fast as possible. I am going to be paying that loan within 3 months, I paid off and cancelled all of my credit cards except for one. The one i kept I paid off and lowered my credit limit to only $2,500 in case of an emergency. I might occasionally use it for small purchases from time to time, but I plan on paying off the balance every single month.

I have also started to save a lot more, I lowered my over draft, and plan on investing some of my money now, and of course clearing up that delinquent account on my profile.

Is there anything else I can do to improve my credit faster? What are some tips and some things to avoid when dealing with credit?

I suggest anybody that hasn't viewed their credit report in a long time to look into soon. It is very useful and lets you know where you are. You might just be surprised of what you find in there.

[Supa Dexta]

I should pull up mine sometime as well.. Last month I had a meeting at RBC and they were going on about some 400 and something number as my score.. I was like wtf?! I should have damn near perfect credit.. But they said they score things differently, and that 400 to them is quite good... :confused:

I've read that getting rid of accounts and cards is bad for it though? And something about checking your score all the time isn't good, because it looks like you're applying for credit/loans and then not getting them?

I don't understand why credit is such a mystery to most of us in this day. I really don't know shit about it, except that I use it all the time and pay it off every month, and hope for the best.

[GQBalla]

supposedly if you use your credit card and use it up to near max and than even if you pay it off at the months time when its due it lowers your credit score.


supposedly i dunno if its true

[broken_legs]

Originally posted by GQBalla
supposedly if you use your credit card and use it up to near max and than even if you pay it off at the months time when its due it lowers your credit score.


supposedly i dunno if its true


True.


Credit utilization is part of the score. Always keep your credit utilization under 50% and you should be good.

This also means that canceling unused credit will lower available limits and thus increase utilization if you have an existing balance.

[revelations]

This is a rough guideline on how credit is calculated....

http://upload.wikimedia.org/wikipedia/commons/thumb/7/74/Credit-score-chart.svg/600px-Credit-score-chart.svg.png

[revelations]

WIKI

http://en.wikipedia.org/wiki/Credit_score_(United_States)

(the same system used to calculate numbers in Canada)


Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely guarded secrets, the Fair Isaac Corporation has disclosed the following components and the approximate weighted contribution of each: [5]

* 35% — punctuality of payment in the past (only includes payments later than 30 days past due)
* 30% — the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
* 15% — length of credit history
* 10% — types of credit used (installment, revolving, consumer finance)
* 10% — recent search for credit and/or amount of credit obtained recently

The above percentages provide very limited guidance in understanding a credit score. For example, the 10% of the score allocated to "types of credit used" is undefined, leaving consumers unaware what type of credit mix to pursue. "Length of credit history" is also a murky concept; it consists of multiple factors — two being the oldest account open and the average length of time other accounts have been open. Although only 35% is attributed to punctuality, if a consumer is substantially late on numerous accounts, his score will fall far more than 35%.[citation needed] Bankruptcies, foreclosures, and judgments affect scores substantially, but are not included in the somewhat simplistic pie chart provided by Fair Isaac.

Credit scores are not the sole underwriting factor used by lenders. Other loss mitigation tools and data are used in addition to a score to gauge an individual's creditworthiness. For instance, current income and employment history, which are not part of a score, are weighed when applying for credit. An unemployed individual with no sources of income will not usually be approved for a home mortgage, regardless of his or her FICO score.

There are other special factors which can weigh on the FICO score.

* Any money owed because of a court judgment, tax lien, or similar carry an additional negative penalty, especially when recent.
* Having more than a certain number of consumer finance credit accounts also carries a negative weight (critics say that this causes a vicious cycle, locking people into continuing to use consumer finance companies).[citation needed]
* The number of recent credit checks also can weigh down the score, although credit agencies usually claim to allow for credit checks made within a certain window of time not to aggregate, so as to allow the consumer to shop around for rates.[citation needed]. While all credit inquiries are recorded and displayed on your credit report for a period of time, credit inquiries that were pulled by yourself (to check your credit), by your employer (for employee verification) or by companies initiating prescreened offers of credit or insurance do not have any impact on your credit score.

For more information about factors that may influence your credit score read the credit rating section of the credit history page.

[djayz]

Edit: Posters above me answered my questions :D

[DENZILDON]

Maybe this will help. When I got here in Canada about 5 years ago I had to build my credit. Within a 1 year and a half I was able to build it from nothing to 620 just by getting a credit card and then paying 2 x the monthly statement.

Oh, and never ever ever be late in payments! This normally hits your credit score big time. May it be credit card, mortgage, etc.

[jonnycat]

Having available credit is a good way to bring your score up. CC, LOC's with near 0 balances) on the other hand having too much available credit is a risk, as someone can get them selves in a world of debt with no way to pay it off.

Transunion is basically a report for RBC and it's affiliates and Equifax seems to cover the rest of the banks. I've seen horrible Equifax's for a customer, and then pulled a near perfect Transunion on them.

Don't shop for Credit. If your Bureau is pulled 3 times in 90 days, it sends up red flags. Each time you pull a report your score drops. Who ever pulls the report depends on by how much. CIBC, RBC, Scotia is most likely a one point hit. VFC, Wells Fargo etc. is more like 3 points per hit. When you buy a car, the dealer will pull it once, (2 point hit) and then a good bank (1 point). Oops got declined, now you get sent to VFC, Wells Fargo, Rifco (9 points). It adds up real quick. I've seen people with no late payments, no repos, no judgments but have shopped for credit 30 times in a month and have no score left, actually unscored.

Another big factor is your Total Debt Service Ratio. Keep it low.

[lint]

canceling those credit cards probably wasn't the best strategy. Why are you trying to build credit so fast?

[funkedelic2]

Thanks everybody for their responses. They were helpful.


Originally posted by lint
canceling those credit cards probably wasn't the best strategy. Why are you trying to build credit so fast?

I canceled 2 that had high interest and i didn't need. I left one with a $2,500 balance, but paid it off. My financial advisor told me that this would most likely be the best soultion, since i didn't need 3 cards all at once.

I'm trying to build my credit back up because i want to buy a new car in the spring and i am going to most likely spend 40k +

[lint]

seems like bad advice. Should have just paid them off, requested the limits dropped down to nominal amounts, say $500, cut them up and not use them. You've lost credit history and credit that you could have used to build your credit. The one card that you have left should be used, but should be paid off monthly. Using and repaying credit will help you build your score. Paying cash for everything is a good method for saving, but not for building credit.

You may seriously want to reconsider purchasing a new $40K+ car in the spring because the interest rate on the loan that you're going to get will bend you over hard.

EDIT: and stop seeking credit.


I am assuming my credit score is so low because I have had multiple credit cards at the same time with the balances near their credit limit. I have also applied for a lot of credit which I hear doesn't help much either.

What kind of credit was it that you were applying for? CC applications? If you had been applying for loans or LOCs the officer should have been able to tell you your credit score at the time. That should have raised some flags

[funkedelic2]

Originally posted by lint
seems like bad advice. Should have just paid them off, requested the limits dropped down to nominal amounts, say $500, cut them up and not use them. You've lost credit history and credit that you could have used to build your credit. The one card that you have left should be used, but should be paid off monthly. Using and repaying credit will help you build your score. Paying cash for everything is a good method for saving, but not for building credit.

You may seriously want to reconsider purchasing a new $40K+ car in the spring because the interest rate on the loan that you're going to get will bend you over hard.

The card i have left has that amount in the case that i may need to fly some where last minute, or something along those lines that may require over $500. I still plan on using it month to month. I have 2 payments that are charged on that card so i plan on paying it off every month to keep building my score up.

I am not paying the full 40k from a loan. By the time that i am ready to buy, i will have quite a bit saved so i will take a loan out for the remainder. I still have to look around for the best interest rate, but i am expecting something on the higher side. What can you do?

Definately don't want any additonal credit after paying everything off. I won't seek any credit until i buy my new car.

[jazzyb]

pay your bills smart guy

:facepalm:

[GQBalla]

He did pay his bills he stated that in his first post. ^^^

[Carlton]

I don't know man my credit looks shitty but I get approved for stuff all the time... unless you've filed bankrupcy you'll be fine.

[jonnycat]

As long as you can get that score over 600 by the time you buy your car, it should work out for you. Should be no problem to gain 6 points.

[rage2]

Originally posted by revelations
* 10% — recent search for credit and/or amount of credit obtained recently
So if I decide to pull my credit report to look for anything weird to prevent from fraud, that will affect my credit score?

[The_Rural_Juror]

Originally posted by jonnycat
As long as you can get that score over 600 by the time you buy your car, it should work out for you. Should be no problem to gain 6 points.

Isn't 600 still a poor score?

[The_Rural_Juror]

Originally posted by rage2

So if I decide to pull my credit report to look for anything weird to prevent from fraud, that will affect my credit score?

No, those are exempt (or so I've been told a few times). When I last pulled my credit report, they had an monthly option to view your report every month. Those would kill your rating if they affected your score.

[JfuckinC]

Originally posted by rage2

So if I decide to pull my credit report to look for anything weird to prevent from fraud, that will affect my credit score?

Yah but not by much unless its done multiple times. I've been told this by many different banker's, Cause like stated earlier it makes it look like you are applying for more.

[Redlyne_mr2]

Originally posted by rage2

So if I decide to pull my credit report to look for anything weird to prevent from fraud, that will affect my credit score?
No when you do it yourself through equifax its known as a soft inquiry and does not affect your score. On the flip side if you had a friend who worked at a financial institution (bank, business office at a dealer etc) and he or she pulled your bureau for you then it would affect your score.

[znx]

I don't know if I missed it but: how do you gain credit scores/increase your credit score if you still have debts to pay?

[Redlyne_mr2]

Originally posted by znx
I don't know if I missed it but: how do you gain credit scores/increase your credit score if you still have debts to pay?
Paying your debts/bills on time. Nothing wrong with debt, it's how you pay it thats important.

[rage2]

Originally posted by Redlyne_mr2
No when you do it yourself through equifax its known as a soft inquiry and does not affect your score.
Well I pulled my equifax for fun, and surprisingly, mine isn't that great either! I thought it'd be better.


Your FICO score of 743 summarizes the information on your Equifax credit report.

Your score is slightly below the average score of Canadian consumers, though most lenders consider this a good score.
I'm in the 40th percentile, but according to Equifax it's not too bad...


- It is very unlikely your applications for credit cards or other loans will be turned down, based on your score alone.
- Most lenders will consider offering you very attractive and competitive rates and terms on loan products.
- Many lenders will be able to provide you with an instant approval status based on your score.

The reason it's low...


Instances of being seriously late or having derogatory indicators/narratives on your credit obligations is being reported on your credit file
When I got divorced, my bank accounts changed, and I forgot to change a single recurring charge for 60 days. It was for $50 lol.

This next one kinda sucks...


You have a relatively high number of accounts with balances

Analysis repeatedly finds that carrying balances on too many credit accounts at once is a predictor of future repayment risk. (For credit cards, the total balance on your last statement is generally the amount that will show in your credit bureau report. Note that even if you pay off your balance in full every month, your credit bureau report may still show a balance on those cards.)
I keep 0 balances on my CC's. But, I do try and buy everything on CC for the points/rewards. I have a $13k balance that's scheduled to be paid off on Monday on time, but I guess that's considered a high balance. I also have a car on lease for writeoff purposes, and it's considered a balance too. I guess 2 accounts with balances is relatively high to them?

It's odd that it doesn't realize I don't even have a mortgage anymore, you'd think that my score would be high because of it.

So ya, don't feel too bad, my score isn't that much better than yours! :rofl:

Anyone know what I can do to get to the 850's? Guess I have to wait till next year for those delinquent records to fall off haha. I'll try again next month, not use my credit card at all and go all cash to see if it makes any difference. I'd only have 1 account with a balance then and it should be higher right?

[supe]

From my understanding, cancelling credit cards is fine, but you dont want to cancel your oldest credit card which shows the longest credit history.

[prae]

mine was around the 775-800 mark and the only thing bringing it down was utilization of available credit... last time I checked i think i had one credit card with a 1500 limit, and i was consistently racking up a balance of over 1000 on it, and paying it off before it was due...

i think worrying TOO MUCH about your score isn't healthy... but it is good to be aware of certain behaviors that make you appear riskier to lending institutions.

[znx]

Pulled mine also and it's not that bad (lower than rage2's though lol). I guess I just need to continue paying on time (I have no reports of late payments at all). Don't feel bad man, mine's not that great also; I still get approved with loans but I do need to get my credit score higher! lol.

Two of my credit cards are almost up to the limit but with part time job, full time school, it's really hard to pay it off very quickly especially I pay half of my tuition fees every semester..4 more months to go though for school and done! :poosie:

[max_boost]

LOL @ rage2

743 is a pretty good score. It's instant approval status for any loan etc.
743 is a lot higher than 539. That's a whole world of difference.

Mine has been steadily dropping too. All those damn cheap lease/finance offers, switching cars, helping my sister and cousins co-sign on their place. It went from 762 to 706 or something. I'll check it again soon.

I don't think your rating will change month to month, maybe give it 3-6months and see.

Funkedelic2, how old are you? <25? Yeah that matters too. Longer credit history shows you are able to repay debt etc.

[dezmarez]

your credit score is only one factor in determing if your going to get credit...you also have to have income to support, it also helps that there will be some sort of security to back you up (the car) instead of trying to get the 40k unsecured
if you dont have the best credit score and you make good income you should be fine (as long as there are no "public records" which are items that have been sent to collection...it also helps to have some sort of savings to show that you are not living from pay cheque to pay cheque and have the ability to save

[rage2]

Originally posted by prae
the only thing bringing it down was utilization of available credit...
I don't think that matters. I just added it up and I have over 100k of credit available even with my single cc balance for this month. That's just with credit cards haha.


Originally posted by prae
i think worrying TOO MUCH about your score isn't healthy... but it is good to be aware of certain behaviors that make you appear riskier to lending institutions.
I'm not terribly worried, I don't see a need for a loan anytime soon, but it's just interesting to see that I'm rated below average when I figured I'm probably one of the best candidates for a loan. Just trying to figure out how the system works more than anything.

[dezmarez]

Originally posted by rage2


I'm not terribly worried, I don't see a need for a loan anytime soon, but it's just interesting to see that I'm rated below average when I figured I'm probably one of the best candidates for a loan. Just trying to figure out how the system works more than anything.


thats why your credit score is only one factor in being a candidate for a loan

[znx]

I would more worry about my score when I am getting a house but that won't happen for another 2 years time which I would think my credit score would be on the very good standing by then. Just an opinion about 'worrying'..

[lint]

Originally posted by rage2
I'm not terribly worried, I don't see a need for a loan anytime soon, but it's just interesting to see that I'm rated below average when I figured I'm probably one of the best candidates for a loan. Just trying to figure out how the system works more than anything.

It's a bit of a black hole. You build credit to use it, but using it hurts it. Vicious cycle.

[Redlyne_mr2]

Originally posted by rage2

Well I pulled my equifax for fun, and surprisingly, mine isn't that great either! I thought it'd be better.


I'm in the 40th percentile, but according to Equifax it's not too bad...


The reason it's low...


When I got divorced, my bank accounts changed, and I forgot to change a single recurring charge for 60 days. It was for $50 lol.

This next one kinda sucks...


I keep 0 balances on my CC's. But, I do try and buy everything on CC for the points/rewards. I have a $13k balance that's scheduled to be paid off on Monday on time, but I guess that's considered a high balance. I also have a car on lease for writeoff purposes, and it's considered a balance too. I guess 2 accounts with balances is relatively high to them?

It's odd that it doesn't realize I don't even have a mortgage anymore, you'd think that my score would be high because of it.

So ya, don't feel too bad, my score isn't that much better than yours! :rofl:

Anyone know what I can do to get to the 850's? Guess I have to wait till next year for those delinquent records to fall off haha. I'll try again next month, not use my credit card at all and go all cash to see if it makes any difference. I'd only have 1 account with a balance then and it should be higher right?

Divorce usually destroys a persons credit since most expenses are based on dual income. When it falls to single income it becomes very difficult for those involved to stay a float. It's obvious that you were the daddy serving up the sugar in your situation. :)

Another factor that determines credit is time at address and employment. Unfortunately you're rewarded for having a boring and mundane life. If you've lived at the same place for 30 years and worked at the same place for 20 then you're going to see a high fico score as long as your tdsr is kept at a reasonable level and you pay your bills on time. As mentioned before.. dont shop for credit... determine the credit card, mortgage company, car loan that youre going to go with then go get it. Don't drive around town visiting stores and having them put inquiries on your bureau.

Oh and mortages dont show on equifax, if you used a LOC to buy your place then it would.

[max_boost]

Originally posted by rage2

I don't see a need for a loan anytime soon, but it's just interesting to see that I'm rated below average when I figured I'm probably one of the best candidates for a loan. Just trying to figure out how the system works more than anything.

You have a HELOC on a paid off house at prime minus 1% right? You won't ever have to apply for another loan again. That's like $500K at your disposal. :nut:


Originally posted by Redlyne_mr2


Another factor that determines credit is time at address and employment. Unfortunately you're rewarded for having a boring and mundane life. If you've lived at the same place for 30 years and worked at the same place for 20 then you're going to see a high fico score as long as your tdsr is kept at a reasonable level and you pay your bills on time. As mentioned before.. dont shop for credit... determine the credit card, mortgage company, car loan that youre going to go with then go get it. Don't drive around town visiting stores and having them put inquiries on your bureau.

Oh and mortages dont show on equifax, if you used a LOC to buy your place then it would.

My primary residence doesn't show but my HELOC and co-signing for my sister+cousin shows.

It definitely helps if you have a steady/long term job. It looks good to employers if you have had many jobs (experience) but to a creditor, it's risky haha

When I fill out a loan application, the rep is pretty surprised I've only had 1 job and for that long. LOL

[funkedelic2]

Originally posted by max_boost
LOL @ rage2

743 is a pretty good score. It's instant approval status for any loan etc.
743 is a lot higher than 539. That's a whole world of difference.

Mine has been steadily dropping too. All those damn cheap lease/finance offers, switching cars, helping my sister and cousins co-sign on their place. It went from 762 to 706 or something. I'll check it again soon.

I don't think your rating will change month to month, maybe give it 3-6months and see.

Funkedelic2, how old are you? &lt;25? Yeah that matters too. Longer credit history shows you are able to repay debt etc.

Yeah i just turned 24 this month. I am hoping my credit is over the 600 mark in about 5-6 months! Thats pretty realistic right? I kept my longest running credit card to use, but will keep it below 35% of my available credit and plan on paying it off every month.

I also opened up an additional savings account, and should have about 17k by the time i buy my car. So my profile should look a little better next time the bank pulls up my credit.

[extm88]

I was choked when i saw myne at 643 and it was rated as poor.
I later found out that it can take 5 years of credit status to make a nice jump.
Being 20 i have since found out i have a good score for my age but it still sucks seeing POOR on the status lol.

[rage2]

Originally posted by Redlyne_mr2
Divorce usually destroys a persons credit since most expenses are based on dual income. When it falls to single income it becomes very difficult for those involved to stay a float. It's obvious that you were the daddy serving up the sugar in your situation. :)
Fuck you man, I survived off bread and water for a while! :rofl:

[nbaker00]

If you have a 700+ credit score will get system approved for a loan.. (Gold balls for credit)
(Of course may be conditional approval)
Anything 550+ is still considered fairly good for loans.

[The_Rural_Juror]

Originally posted by nbaker00
If you have a 700+ credit score will get system approved for a loan.. (Gold balls for credit)
(Of course may be conditional approval)
Anything 550+ is still considered fairly good for loans.

On a side note: have you seen that threshold increase with the credit crisis?

[bashir26]

Last time I checked my equifax around this time last year I was @ 724

[ee2k]

As most probably mentioned in the many responses, credit is affected by:
- owed balance vs available credit
- number of balance carrying credit
- late payments
- credit applications: credit shopping hurts big time

While your credit situation is currently the best it's been, credit history is based on the last 7 years' worth of activity. So that credit card you forgot to make a payment on 6 years ago because of [insert reason here] is still affecting you.

I raised my score from 640 to 738 in one year a few years ago. Don't know where it's at now, but have had a mortgage pre-approval done up for a lot more than what I actually plan to spend on a place (not ready to buy yet, but know what I am capable of).

If/when applying for a car/home loan, try to sit down with the personal advisor/financial person and talk to them about your credit. Mine, when I first had a 640 and needed a line of credit, went through my credit report (which she had just pulled) with me. She asked what each item was, and questioned that one 30 days+ overdue item that was a sour point. I told her what had happened (was in exams, totally overlooked it). Her recommendation for credit was positive and I got it. What was affecting me back then was the balance vs available credit on one card - within that year, I had paid the card off, which I still use on daily purchases and pay off every two weeks. I also have student loans and had just come out of univ.

It is wise for us all to run our credit reports twice per year, at the very least once per year. What this allows for is any erroneous reports any of our creditors may have made to our account. Also, and more importantly, id theft is a common occurrence, and it'd help to know of unknown credit that is applied for in our name.

[SilverRex]

Originally posted by lint
canceling those credit cards probably wasn't the best strategy. Why are you trying to build credit so fast?

yeah I also did the mistake by closing one of my credit card accounts. this actually lowers your score because they look at your debt relative to how much credit you have, so if you reduce your cards, your basically increasing your debt to credit ratio putting you back near maxing out your limits again

[prae]

Originally posted by rage2
Just trying to figure out how the system works more than anything.

you and me both! haha ;)

[88CRX]

How and where can I check my credit rating?

[lint]

Originally posted by 88CRX
How and where can I check my credit rating?

It's in the first post. Equifax or Transunion

[RedGallardo]

Originally posted by jonnycat
Having available credit is a good way to bring your score up. CC, LOC's with near 0 balances) on the other hand having too much available credit is a risk, as someone can get them selves in a world of debt with no way to pay it off.

Transunion is basically a report for RBC and it's affiliates and Equifax seems to cover the rest of the banks. I've seen horrible Equifax's for a customer, and then pulled a near perfect Transunion on them.

Don't shop for Credit. If your Bureau is pulled 3 times in 90 days, it sends up red flags. Each time you pull a report your score drops. Who ever pulls the report depends on by how much. CIBC, RBC, Scotia is most likely a one point hit. VFC, Wells Fargo etc. is more like 3 points per hit. When you buy a car, the dealer will pull it once, (2 point hit) and then a good bank (1 point). Oops got declined, now you get sent to VFC, Wells Fargo, Rifco (9 points). It adds up real quick. I've seen people with no late payments, no repos, no judgments but have shopped for credit 30 times in a month and have no score left, actually unscored.

Another big factor is your Total Debt Service Ratio. Keep it low.

Wow. I can't believe how identical this sounded to what my banker had to say...

[oilerfan4lyfe]

To the OP: The late payments definately hurt your credit...try to avoid that for the future.

There's a lot of people seeing their numbers as supposedly poor...anything over 700 is pretty good and means banks will happily loan you money at good rates with confidence. I don't believe them when they tell you stuff like you're in the 40% percentile for a credit score of 740 - sounds like bullshit to me. I have a hard time there's very many people with scores of 800+ out there.

Even the 600s aren't horrible...they just mean that you're not the cream of the crop. Many "normal" people probably have scores in the mid-high 600s.

The whole system is kind of stupid in a way because a lot of people who have insanely good credit scores have little to no debt...and the reason why is because they have large incomes and as a result don't really need to borrow money anyways.

Also goes to show why people who are responsible when they're younger get rewarded...kids who think they're smart because they rip a few companies out of a couple grand by not paying their credit cards or bills end up realizing in the end that they've just screwed themselves over when they want to get a car loan or a house.

[Beerking]

I checked mine last week, 715....not bad I guess, thought it would be higher.

I noticed that Scotia has been raising my VISA limit on both CC's considerably, and I just called to get them lowere to their original limit, will that affect my score at all?

[SScott]

i just got approved for a $15,000 LOC with 5.99% Interest rate. I'm not even quite sure what my credit score is. Was 619 earlier this year, but i've since, paid off my car loan, credit cards, consolidation loan, and have gotten a mortgage

pretty sweet

[ee2k]

Originally posted by SScott
i just got approved for a $15,000 LOC with 5.99% Interest rate. I'm not even quite sure what my credit score is. Was 619 earlier this year, but i've since, paid off my car loan, credit cards, consolidation loan, and have gotten a mortgage

pretty sweet

Wooooo SScott, they now want to pull you back to where you were before :)

Congrats on cleaning up your loans/cards. It is a great feeling when it is all done and you have the extra cash flowing in and you don't know what to do with it - well, you got a mortgage.

[rizfarmer]

Originally posted by rage2

Well I pulled my equifax for fun, and surprisingly, mine isn't that great either! I thought it'd be better.

Your FICO score of 743 summarizes the information on your Equifax credit report.
I'm in the 40th percentile, but according to Equifax it's not too bad...

- It is very unlikely your applications for credit cards or other loans will be turned down, based on your score alone.
- Most lenders will consider offering you very attractive and competitive rates and terms on loan products.
- Many lenders will be able to provide you with an instant approval status based on your score.
The reason it's low...

Instances of being seriously late or having derogatory indicators/narratives on your credit obligations is being reported on your credit file

When I got divorced, my bank accounts changed, and I forgot to change a single recurring charge for 60 days. It was for $50 lol.

This next one kinda sucks...

You have a relatively high number of accounts with balances

Analysis repeatedly finds that carrying balances on too many credit accounts at once is a predictor of future repayment risk. (For credit cards, the total balance on your last statement is generally the amount that will show in your credit bureau report. Note that even if you pay off your balance in full every month, your credit bureau report may still show a balance on those cards.)

I keep 0 balances on my CC's. But, I do try and buy everything on CC for the points/rewards. I have a $13k balance that's scheduled to be paid off on Monday on time, but I guess that's considered a high balance. I also have a car on lease for writeoff purposes, and it's considered a balance too. I guess 2 accounts with balances is relatively high to them?

It's odd that it doesn't realize I don't even have a mortgage anymore, you'd think that my score would be high because of it.

So ya, don't feel too bad, my score isn't that much better than yours! :rofl:

Anyone know what I can do to get to the 850's? Guess I have to wait till next year for those delinquent records to fall off haha. I'll try again next month, not use my credit card at all and go all cash to see if it makes any difference. I'd only have 1 account with a balance then and it should be higher right?



We have a very conservative credit scoring system in Canada... A FICO score of 743 would be considered good and not 'unlikely your applications for credit cards or other loans will be turned down...'

You have to keep in mind that any credit facility that is approved based on credit score alone is just retail credit and something that a person at the bank who would not be considered to be in an important role can approve.


Obviously you don't want bad credit, but unless you require a loan in the immediate future or are just anal then your credit score is really nothing to worry about.

It looks like the comments provided to a consumer are different and provided in more lay terms compared to when an FI pulls a bureau. The comments really don't mean shit all, everyone has the same ones... The extent to which you did things to make those comments appear in the first place determine the actual score.

Also, FYI residential mortgages do not report on your credit bureau unless there is a line of credit component to the mortgage. So a person could pay out a mortgage in its entirety over 30 years and it would not have any positive effects on his credit rating. You would definately gain a lot of rapport with your lender because of this though, and that is what really matters.

You could also theoretically obtain a mortgage you really couldn't afford and because it doesn't report, also get a very large car loan with another FI by just telling them you have no other debt. They wouldn't know any fucking different.



Yes I work at a bank, but I don't do retail banking. I only look at consumer credit reports as a formality, to ensure the principle of the company we are dealing with is not a loser. Credit score is really not that important to me, but the details of how accounts are handled are.

You may have a very derrogatory account dragging down your score on your bureau, but an intelligent lender can see this for what it is and realize that it may just be because you refused to pay telus $140, so they shouldn't really care.


Fuck, I feel like I'm at work.... and I didn't even give any advice on how to improve your credit score :rofl: but hopefully that gave some people some industry insight.

[max_boost]

Originally posted by rizfarmer


You may have a very derrogatory account dragging down your score on your bureau, but an intelligent lender can see this for what it is and realize that it may just be because you refused to pay telus $140, so they shouldn't really care.



I've always wondered about this. I honestly could not see a lender turning someone down because of a small non-payment. Especially when this individual has a solid score, stable job, pays everything else on time etc.

[rizfarmer]

Originally posted by max_boost


I've always wondered about this. I honestly could not see a lender turning someone down because of a small non-payment. Especially when this individual has a solid score, stable job, pays everything else on time etc.


In this case you may not get the best possible rate but it shouldn't be a deal breaker

[v2kai]

dammit i just pulled my score after being denied for a credit card and i'm at 656 equifax shows there are two late payments on my credit card that were the result of credit card fraud:banghead: :banghead: how can i get this fixed!? i've been trying to call the number supplied by equifax to deal with this shit but havent been able to get through for two days now:dunno:

[in*10*se]

so being 24... with an M3 and bad credit? should this be surprising? :dunno:

[s dime]

According to equifax, I have a 706. What is the best way to see your total debt/service ratio someone mentioned earlier?

[funkedelic2]

Originally posted by in*10*se
so being 24... with an M3 and bad credit? should this be surprising? :dunno:

My credit isn't bad because of the car i drive, its bad because i was irresponsible, and un-organized and i missed 2 payments and had too much open credit which i ended up maxing out. Car payments aren't a big deal at all, i pay weekly and that way it seemed like it barely made a dent on my paycheques.

Debt is cleared up now and credit is starting to get back on track. You live and learn. It was a lesson i had to learn the hard way i guess, but at least it is something i can still improve on.

[funkedelic2]

FOLLOW UP:

I took people's advice, did some research asked my financial advisor and i made it my mission to improve my credit since i originally saw my credit report and score back in late November 08.

In Less then 3 months i couldn't be happier from what i saw this time that i checked it. My equifax score jumped up from 539 to 624! My transunion credit is a few points off from 700! I took steps to clean up my credit and get it back on track and looks like it is paying off hugely and very quickly. Just goes to show that it isn't that hard to get your credit back on track if you are truly dedicated and manage your money correctly. :clap:

[canadian_hustla]

Originally posted by s dime
According to equifax, I have a 706. What is the best way to see your total debt/service ratio someone mentioned earlier?


TDSR = Mortgage payments + Taxes + Heating Cost + Condo fees + payments on Other Debts

/

Gross annual income of all borrowers