When building back credit, one of the pieces of advice that comes out of debt counselling companies and banks in both countries is to apply for a pre-loaded credit card. For example, you would apply for a $500 VISA card. This is a card that you have put cash down of $500 and you would use it all the time - for groceries, gas, and other shopping trips. You would load it back up as you use it, never running it to zero. You use this card for 2yrs and show that you are capable of using a card correctly and keeping the card full. After 2 yrs your credit rating score should increase and make you eligable for small loans or a "normal" credit card.
Next piece of advice Ė check your credit rating at least every 2years. It is advice that I knew and had been following, however, I neglected to do that when the 2yrs came up (early this year). When I completed paying off all my debts (just over) 2yrs ago I sent off a letter stating I had done this Ė from my credit counsellor Ė and my debts were cleared off the credit bureau. Oh so I thought. Instead, only half of the debts were cleared off, the other half were written off. In fact, the bank credit card debt showed as never being paid, it showed that they could not locate me and that the debt was written off by the bank. Now if this doesnít twist knots, this is the very bank Iím applying for a loan!! I contacted my credit counsellor and he mailed me the letter clearing my debts. I will (probably) receive it today. I will give a copy to my loans manager, then fax off the original to the credit bureau. The counsellor stated if that doesnít fully clear off the debts, then heíll take that over to deal with. It is good to know that even though I have closed my time with the counselling services that they still have my back. Iím sure though this will clear it off (he is also certain it will) and as for the loan, no idea if I qualify. The stickler is that I have no assets, so it has to be approved at the local level and that may/may not happen. Iím fine if it doesnít, I can pay off the remainder of the card by end of year. Itís more to rebuild credit, than to pay off a card. On the good side, I do have a decent credit score despite the glitch in the credit bureau. So thatís my tip of the day Ė always read over everything carefully and check your rating at the credit bureau every 2yrs to ensure that everything is as itís supposed to be. Later I will post the links to the USA and Canadian companies to obtain credit information. If anyone has these, feel free to post.
Good morning everyone. Little bit of advice from an embarrassing moment. I am in the process of building up my credit. I have an active credit card and waited the required amount of time to build my credit, before approaching the bank. I made sure my debts were clear, that everything was good. I asked for a small loan (under $5000) to pay off the active credit card. When she ran the credit check it came up that I was a R9 credit rating Ė which is the worst rating one can have in Canada. She cleared my past debts, ran it again and it came up the same. I went home, found the papers from the credit bureau and handed them in to her. I missed the end part, where it showed that 2 debts did not clear. Very embarrassing to hand your banker papers that state you are a bad risk. Reminder to self (and others), always check your papers from front to back. Read through twice or three times if needed to ensure that everything is read correctly. I was in a rush and did not do that.
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