I'm new, trying to rebuild credit.

[Quasei2]

This is the card I'm waiting for right here...

 

https://www.rbcroyalbank.com/westjet/

 

Then my inquiries will be done for a very long while! I'm taking a major trip next summer so I won't be able to afford anything anyway. LOL

[Handsome Rob]

Wow quasei, that's some news. Think I have a shot with a TU 617, EQ ?.

 

Should I wait for EQ hard copy before talking to Scotia? They denied me last year at 564, shouldn't have listened to customer service reccmendation to try....but hey, I've found CreditBoards now.

 

Cheers guys, brightening up every day.

[Quasei2]

Absolutely 100% wait for your hard copies before going to Scotia. Definitely set up an appt. DO NOT do it over the phone nor the internet. And I can't imagine what rock the CSR crawled under who told you to apply with that kind of score. Yikes! They deserve a flogging. lol

 

As for the 617 on TU, I can't really say for sure. I'm pretty confident it's in the land of a secured card, but that'll also depend on what your EQ says. They'll look at the whole picture for sure. If you have recent hard copies with you the banking officer at the branch will be able to give you a pretty good idea before doing the hard inquiry on your report if you'd be approved. Having the hard copies means if you won't be approved right now that you can avoid the hard inq and get the info about what you need to do in order to be approved.

 

As for whether you'd be approved with RBC, who knows. They had a pretty decent year from their recent annual results, but not sure how much they're loosening up credit. They definitely pull TU though so that's the report to watch if you want that particular card.

 

Q

[Handsome Rob]

Sorry, I meant any chances of cibc. Thanks though, I'll give scotia a try again. I think she was givng me a get out of my office response. After all, at that time, I was almost a guy off the street. No ID, couldn't confirm adress, etc.

[Quasei2]

When I app'ed for CIBC a couple weeks ago my score was likely mid 600's since after my AMEX app when I pulled both reports it was sitting at 627 so you probably have a pretty decent chance with 617. Who knows though... 620 might be their cut off point. A lot of the previously credit candy banks are using that number as a guideline taken from CMHC's mortgage guidelines.

[Handsome Rob]

Just out of curiosity, how much damage do you think I would be looking at for a 2 down, 4 borrow car loan if I could get one?

 

IE - If I could get a major institution, lowered score for hard pull & new credit, gradual return over time? I've heard Wells Fargo will rarely say no.

 

Bad credit financing, how much damage does this do?

 

 

 

Getting a reliable vehicle soon, is probably the most important thing, and probably going to result in the cancellation of the Hawaii idea for next year at least. I work earlier than transit most days, and paying for a cab is just an absolute waste. My vehicle is falling apart, starting to look at this more and more seriously.

[Quasei2]

WFF rarely declines, but you will sell your soul with 28% plus to them. Your $4K will easily be $8-10K before you pay it. And even if you pay it early you still have to give them the interest that they would have obtained if you completed the installment schedule. Don't do it!

 

You'd be better off with a secured line of credit (Most banks have prime + 1% for secured. i've heard rumblings that RBC might be prime plus 0.5%) and then pay it off quickly. That way you then have that credit facility still available to you.

 

Whatever you do, don't go with a WFF loan! They were great to deal with, and while I was trying to fight with TU on correcting errors on my report they were absolutely outstanding. I'd still never get another loan from them though. lol

 

ETA: Since you'll have the card from Cap1, why not approach one of the big banks about a secured line of credit rather than one of their credit cards.

 

Just my 2c.

 

Q

Edited December 10, 2009 by Quasei2

[Handsome Rob]

My problem is, I have $2k today, but it will take 4-5 months to accumulate the other $4k. I will likely need to replace the vehicle in 2 months or less, trying to avoid buying 2-3 Junkers, with one vehicle that will last a couple of years.

 

If I can get away with financing, seems worthwhile to at least talk to a few lenders, no? My conception of secured LOC is that I would need %100+ up front correct. But wow, 28%, that's awful.

[Handsome Rob]

PS - I don't mean to sound arrogant or entitled....I kind of get that drift from re-reading. I'm just trying to look at everything.

 

I don't mind paying a high rate on a two year $4000, although 28% is extreme.

 

However, I run through a car loan calculator, and I see:

 

Purchase price: $5300

Down Payment: $2000

Term: 24 Months

Interest Rate: 28%

 

Amount Financed: $3936

Total Interest: $1249

Taxes: $636

 

Monthly Payment: $216

 

Am I missing something huge? I am prepared to deal with the above as a worst case scenario, although I certainly wouldn't get into it without looking at every alternative....I'm just sick of buying $1500 cars, and going to work at the very early hours of the morning makes a vehicle quite the requirement. $60/week in taxis is a greater expense than the loan payment.

[Quasei2]

Didn't sound arrogant, etc at all! Not even remotely.

 

I see now why you're pushing ahead.

 

Thing is... WFF will likely not do less than a 36 month term and remember the interest compounds monthly rather than annually. This means with a $4000 loan at the end of 3 years you will have paid a total of $9,176.48 (principal + compounded interest). This means $255ish monthly payment. If they are willing to give you a 2 yr loan then that means a total paid of $6957.78 with a monthly payment of $291ish. And we're not even factoring taxes into the equation here. Have you factored in your insurance payments? How about tires? Maintenance? Gas? Anti-freeze? Windshield fluid? Oil? Parking? etc etc etc. This amount starts to add up quickly and I suspect would be far more than you $60 per week on cabs. I definitely hear you on the odd working hours for sure as I used to work odd shifts too. It's a PITA for sure!

 

Here's the kicker with them... my ex who is well into the 800's club has been hounded mercilessly by them to take a loan, but the BEST they will offer him is 26.5%. Um yeah no thanks... not with a line of credit at P+0.5. LOL They tried to explain to him how it would make sense to turn the balance on his line of credit into a term installment loan with them. Um yeah no. LOL

 

I just hate to see you get underwater on this one!

 

Definitely talk around to a few lenders. Perhaps even add this to the list of things to discuss with Scotia. I suspect it'll be a no-go, but hey it never hurts to ask, right? And you'll have hard copies of your reports with you so you won't be risking a hard inquiry. If you do decide to shop around and do a few inquiries for a loan make sure they are all within 10 calendar days of one another so they will be counted as one inquiry as far as your score is concerned. I think, also, the folks on the US board have good ideas too with visiting the local credit unions for their loans particularly if there is a credit union which you'd be affiliated with via work. If you can get it, you might be best off getting a straight up loan for a new car. You'd probably find it cheaper in the long run if you can get the financing for it. VanCity has some pretty sweet loan rates for hybrid and other "green" cars. This might be a time to shoot big rather than get yourself underwater in a car with no resale value. If you are hellbent on spending that $9K to WFF, why not buy a $9K car certified/inspected, etc off a dealer lot w/ a warranty and sensible financing. Chances are that because the car has decent resale value for the duration of the loan you'd have an easier time getting the loan than you might think.

 

You might also check with your employer about green initiatives for vehicles. A friend of mine recently received a $2000 rebate from her employer for her purchase of a SmartCar. She just bought the most basic possible one since she only needs it for to and from work - has another car for regular work and this car would only really have her in it so it just need to get her from A to B and didn't need space for her kids. The rebate from her employer was entirely related to purchasing a "green" vehicle. And because of the guaranteed rebate from her employer she was able to receive a better financing rate since she had her deposit PLUS the $2K which she'd agreed in her purchasing contract to forward to her financer within a particular amount of time. Pretty sweet deal really. It definitely helped her get a rate for financing that she really wouldn't have otherwise qualified for with her credit history. It might be worth checking into for you... perhaps rather than a 1-2 yr car you might turn it into a 5-6+ yr car and make it an even better investment.

 

Hope these thoughts help! Keep us posted what you find out for loans, rates, etc and what banks are offering right now! And keep us posted what you decide.

 

Q

[Handsome Rob]

Ouch, that's some frightening stuff.

 

All well, an open mind, I'll keep looking around. I just hate buying near brand new cars because they depreciate soo fast. I just saw a 2006 Cobalt for $4,995. This thing lost near $11,000 in three years. Yikes.

 

Also trying to avoid getting locked in for a longer term, just hate having that much hanging over my head for that long. In terms of on top costs, yes I'd considered it. $200 is reasonable, but that number can grow to as high as $500 to get a short term pay off.

 

My monthly income after tax is $2400, household is $4500. Monthly fixed expensive are low, around $1500, we share a bachelor, and don't go out/eat out much at all. Fun is usually found in a park or forest, hiking, etc. We're not saving so much because she's making massive CC payments to pay off the $5000 balance, hoping to have it done by spring, I'm helping her out with that.

 

I'll let you know how I make out, I feel like I should be able to come up with something. I mean, expenses are practically non-existent, debt to income is 0% for me, she has available credit, I'm just trying not to go that route because she doesn't even drive, and we're not by any means married, although I'm not expecting to split anytime in the future either. Things are great around the house, just seems like stress we don't need, sharing credit at this point.

 

It's a waiting game, we'll see.

[Handsome Rob]

Argh.....11 days and still no correspondence from Cap One, they say it's in the mail.

[Handsome Rob]

Well, missed the cap one response away on business, but it's $75 - $500. That sounds like good news. Going to priority mail the cheque back.

[Quasei2]

Congrats on this, Rob! You're well on your way to the path to repaired and good credit! Keep us posted as other things come in for you.

[Handsome Rob]

Boy you guys/gals sure weren't kidding when talking about Cap1 waits...

 

Cheque cashed Dec 28.....been checking the mailbox every couple hours the last day or two.

[Stu.Padaso]

Boy you guys/gals sure weren't kidding when talking about Cap1 waits...

 

Cheque cashed Dec 28.....been checking the mailbox every couple hours the last day or two.

ahahahaha.

 

Like I said, it was the longest couple weeks of my life waiting for that CapOne card to arrive.

 

Keep in mind though that there has only been 4 business between the 28th of Dec and today (the 4th of Jan).

 

If I was a gambling man, I'd say you'll get it next...ummmmm...Monday. Things like that always seem to come on a Monday. Important things like to sit down at the post office ALL WEEKEND mocking me. Saying things like "I'm right here! I'm just around the corner. And you can't have me yet! You have to wait ALLLLL day Saturday and ALLLLL day Sunday"

[Handsome Rob]

I know, but you'd figure that cheque clearing day would be paperwork done day......YYZ-YVR shouldn't be more than two days in the mail.....hell I'm thinking too much.

 

I expressposted the cheque and that took 10 days to process.......soooo slow.

 

All well, they say patience is a virture.

[Handsome Rob]

Wow....EQ hard copy showed up showing 4 inquiries and 0, zero trade lines.

 

Can't wait to get on that site and see if there is anything different.

[Quasei2]

One thing to remember about cheque clearing is that the day it leaves your acct isn't necessarily the day that CapOne receives confirmation. The whole cheque clearing process is far more complicated and lengthy than most people realize. People have been spoiled by rules which only allow banks to hold Canadian currency deposits for 6 business days unless there is just cause. The whole process can actually take 2-3 weeks and I've seen it take 90+ days in a couple cases. Oh how happy people are when cheques are returned after 90 days. LOL

 

Wow that's crazy on your EQ! Cap1 definitely reports to EQ so that'll be a good thing.

 

And I actually am betting on Tuesday. That's when my good mail arrives. lol Makes me sweat out the weekend and then the disappointment of no mail on a Monday. LOL

[Handsome Rob]

Right, still reading and passing cap1 wait time....few more questions.

 

1) British Columbia Statute Of Limitations is 6 years. Can't figure out if this is 6 years from date of first delinquency, or date of last activity. IE: RBC Visa was opened 2004, went ugly in 2007, settled in 2008. So if undisputed, that goes in 2013, or 2014? Has a few more ramifications in other accounts, that's just the simplest idea.

 

2) Based on continued reading, I'm accepting the fact that I'm going to have to go longer term + newer year for an auto loan. Haven't yet talked to any lenders yet, but looking at something like a 2009 Hyundai = $1500 + $3000 in rebates.....something like $14500 financed over 60 months. Maybe a 2008 Hyundai for $9000.....some $11000 financed. Prior to down payment of course.

-Think I should go for it?

-Think I have a shot at 600 + teens? Hope for all hell that Cap1 bumps me up above the 620 in a short time frame?

Debt to income is great, income + expenses are fine, year at current residence, 3 years at the last one. 3 years at current employer.

 

EQ hard copy stillllllll hasn't shown up. That went out two weeks before the Cap1 app.

 

Gonna go ahead and go see somebody at scotia for 1K secured with fingers crossed for any other possibilities. Seriously considering talking to CIBC as well.

 

Cheers folks, happy new year.

Edited January 10, 2010 by Handsome Rob

[Quasei2]

Ouch on the BC SOL length. Since you settled in 2008 that is the date that is important for your CBR. Here's the fun part though, some creditors like to play a game which actually allows them to report the unpaid amount for up to 21 yrs by renewing the date. There is a clause federal legislation which allows this, but it's extremely unusual for them to do so. Keep an eye on this item. Best to know that it's possible then be slammed with finding it out later, right? Hopefully at some point in the next couple years they'll report it incorrectly in an update, you'll dispute, and it'll be gone. lol

 

I have to say I'm kind of glad you're looking at a newer model car. I know the up front costs are higher, but the long term cost honestly is lower. I think you have a shot at the car loan. Remember, car loans have collateral so lenders are a little more forgiving with them. Cap 1 does tend to report quickly so if you can give them 2-3 months to report payments I'm sure you'll see your score rise a bit too. How's the old car holding up? Think you might be able to squeeze 3 months out of it? Banks are more free with lending in the spring months so it might be easier getting toward then.

 

Odd for the EQ hard copy. I'd recommend you send another request for it. They've never taken that long with me. It's always within 10 days.

 

Good luck on the Scotia Visa! Have you chosen one? Ask away if you want some direction/recommendations on that. Also, Scotia is much more sensitive to inquiries than CIBC. Definitely doesn't hurt to talk to both! As much as I'd never put a penny into CIBC's stocks, they've treated me well so far and been surprisingly free with their credit. lol My folks have had one of their Visas (but no other accts with them!) for as long as I can remember and never any issues at all. I would also certainly add into your conversation your plans for an auto loan in the next couple months. Definitely do both of these conversations in branches rather than over the phone. Oh and a tip on the Scotia one... make sure the branch rep puts something in the field asking for your mother's maiden name on your profile. LOL It'll cause a whole other kind of headache when you go to activate the card. if you don't have something in there. I usually recommend people do not use the name even though we will always ask for it we don't care what the word actually is in there. It's much safer to pick something else like the name of the street you grew up on, best friend's dog's name, grandmother's maiden name, grandfather's middle name, etc.

 

Q

[Handsome Rob]

Thanks Quasei. I imagine I'll be obsessing over this stuff for some years so I'll keep an I on it.

 

That was a typo, waiting for TU not EQ. Kind of strange being that I have an active account with TU, and EQ shows up right away. Going to call them tommorow.

 

Haven't talked to Scotia about cards yet. Waiting for a bit more money in the bank. I like to have a pay cheque in savings before committing to anything, 2 or 3 more weeks till I get there. Will be sure to try and build a relationship of some sort with a personal banker, doing things in person without question.

 

You were absolutely right about Cap1 and cheque clearing. Gave them a call and they quoted me two weeks to clear + an average of an eleven day mail time. Yikes. Kicking my self for sending a personal cheque as opposed to certified. I mean, took the time to mail it expresspost....jeeze.

 

My car is going to have to hold out, else I'll be committed to the proletariat chariot. Trying to stay below the 10% down - no more than 48 month term with a reasonable payment. I just can't believe some people that pay finance + insurance almost at par with rent. No car is worth that to me. I'll get there some how some way.

[Quasei2]

Definitely strange with the TU hard copy. They were even faster to send out a hard copy than EQ when i wasn't disputing something. Hmm... I wonder if they're waiting because of your disputes. You have at least one outstanding, right? If so, then that makes sense. They'll send it when they finalize the dispute otherwise what they're sending you may not be accurate with the pending dispute. Do you know what day it was that you sent the dispute? Give it a good 45-50 days from your mailing date.

 

Speaking to your note about a certified cheque. Certified cheques kinda mean nothing right now. They'd still hold that likely too since there's so much fraud with certified cheques, drafts, and money orders right now. Cash is pretty much the only thing that isn't held. There's really only one case now that certifying a cheque is worth the fee and that's when you are the receiver of a cheque. The fee is just a waste of money on the sending end, imho because banks are allowed to and likely will hold it. Your jaw would hit the floor at the new list of discovered circulating lost, stolen, & fraudulent drafts, certified cheques, etc that we receive each and every day. So yeah... save your money. Certifying isn't worth it unless you're receiving.

 

I agree about the car thing. Insurance is kinda ridiculous. Nothing wrong with the 40 foot limo. I'm too cheap to own a car actually. LOL Renting now and then suits me just fine. It would just drain my will to exist to have to pay so much to insurance, gas (and hence big oil), and interest on a loan. I'm allergic to paying interest. LOL

 

Q

[Handsome Rob]

Negative on the active dispute. Waiting for the hard copy prior to taking any action. Do you think I should do otherwise based on online reports?

[Handsome Rob]

Yay! TU hard copy showed up.

 

OK, so looking at:

 

EQ

 

4 Inquiries. 2004, 2006, 2007, 2007. 1 HBC Credit Card(Hudsons Bay Company), 3 Royal Bank of Canada Visa.

 

0 tradelines reported.

 

TU

 

11 Inquiries. 2004: 2. 2006: 3. 2007: 2. 2008: 1. 2009: 3.

5 from RBC. 3 From Cap1. 1 From collections. 1 From Scotia. 1 From MBNA. I never authorized MBNA anything, I'm wondering if this could be a store card or something? Don't remember a thing. Date is 2006.

 

GE MONEY/HBC

 

Opened: July 07/08

Reported: Dec 25/09

Last Payment: Dec 14/06

Closing date: Not reported.

 

Credit limit: $10

High Balance: $146

Status: R1

30 Late: 1

60 Late: 1

90 Late: 0

#M: 47

 

Comments: Account closed/rating non derogatory

 

Insurance Corp of BC

 

Opened: Jun 28/07

Reported: Dec 01/08

Last Payment: Jan 22/09

Closed: Jan 22/09

 

Credit limit: $0

High balance: $1540

Status: O5

30 Late: 1

60 Late: 0

90 Late: 13

#M: 17

 

Comments: Account closed/rating non derogatory

 

Royal Bank Visa

 

Opened: July 15/04.

Reported: Oct 29/08.

Last Payment: September 24/08.

Closing date: Not reported.

 

Credit limit: $1500

High Balance: $1543

Status: R9

30 Late: 2

60 Late: 2

90 Late: 12

#M: 51

 

Comments: Bad debt write-off, Account canceled by credit grantor with derogatory rating.

 

WFF Corp of Canada (Payment plan for retail item, revolving)

Opened: May 18/05

Reported: Oct 31/08

Last payment: July 28/06

Closed: Oct 12/08

 

Credit Limit: $0

High Balance: $1500

Status: R1

30 Late: 3

60 Late: 2

90 Late: 3

#M: 42

 

Comments: Account closed/rating non derogatory

 

CBV Collections (Cell Phone Bill)

Assigned: Apr 25/08

Reported: Sep 24/09

DOFD: Feb 26/07

Status: Paid Dec 19/08

Original: $1503

 

Credit Bureau of Vernon (BC Hydro Bill)

Assigned: Apr 21/08

Reported: Dec 01/08

DOFD: Sep 04/08

Status: Paid Dec 19/08

Original: $158

 

 

That's it!

 

So I'm thinking;

 

GE Money: Don't touch. Good account.

ICBC: What the H is with O5? I don't understand why comments say closed, but the account doesn't show as much. Definitely go after it correct?

RBC Visa?: Should this not be reported as closed officially? IE: Closed date? Definitely go after it correct?

WFF Corp: Leave it be. Old and R1.

CBV Collections: Probably go after, but on what grounds I don't know. Have to dig into paperwork.

CBoV Collections: Should I even bother over $143?

 

Any thoughts? Going to start writing letters and filling out forms soon.

 

Wondering, dreaming I guess about going after some unsecured CIBC candy with zero history at EQ? Wait to see the score obviously, but I mean......some hope has swelled up.

Edited January 15, 2010 by Handsome Rob