4 replies to this topic

[Noday]

Hi all, I'm baaaaaaaaack.

Ok, after a long hiatus, I wanted to poke my head back in here to ask for some words from the wise.

Just as a recap, I had a lot of fun fun accounts in collections due to my soon to be ex husband's mad spending sprees and my "duck your head in the sand" attitude. On top of those, I also had arrears due to Rev Canada and 20k of student loans that kept piling up. And finally, I had declared bankruptcy in 2005 and been discharged in 2006. When I pulled my Equifax and Transunion credit report last year, it was...rather messy.

Since then, I've managed to pay off every account in collection (or negotiate down to a reasonable amount), and I'll be done paying the 8K to Rev Can next month. All that will be left will be quiet little monthly payments on my student loans.

I obtained my FICO score from Equifax today and found it to be at 653, which considering my history isn't surprising.

My question is...since my prepaid Capital One card is going to expire in August and won't be renewed (they don't offer service in Quebec), should I try to obtain a "regular" credit card and just keep making monthly payments so it eventually gets reported to Equifax and TRansunion, and eventually ups my score? Or is it too soon after my financial troubles (and too risky considering my poor score)? Or should I just ask my bank to issue me a secure credit card once more and wait another year?

Also, is there anything else I should actively keep doing to continue to improve my score? I have full-time employment and right now, I'm only dealing with my student loans and Rev Can.

Thank you!

[Noday]

Bump...anyone?

[Stu.Padaso]

Does Capital One not offer any products for the residents of Quebec? If they do, that might be your best bet.

But you know what. If your report is clean why not try for a regular non-secured card from one of the big banks? Your score isn't too bad. There must not be recent late payments or collections showing. Or is there?

The easiest to get approved for at the big banks would be CIBC. But lately I've heard that BMO is fairly lenient as well. If you're declined, ask about a secured card. I assume they can use the same hard inquiry.

And I am of the opinion that you're better off applying in-branch. I know face-to-face applications are difficult for some people (including myself) but I always believe your chances are better when you're sitting at a desk and answering questions directly.

[Noday]

Thanks for the response Stu.

After examining my credit reports from Equifax and Transunion, I discovered that the collection account I had with Collectcents for an old Telus Mobility bill STILL showed as not having been paid, despite the fact that I settled the account in January 2010, and had received confirmation from the agency of the settlement. I had insisted that they contact the credit bureaus to update my report, but apparently, they never did.

I just faxed and mailed both credit bureaus with an explanatory letter, supporting documentation from Collectcents and supporting identification documentation, in the hopes that they'll at least write "SETTLED" under that collection account.

Do you think that modification might up my rating?

After this is done, there won't be any "active" collection accounts left on my reports.

And no, Capital One doesn't offer any products for Quebec residents, so I'd have to go to my local TD branch to apply for a card.

[MikeVQ]

IMO, secured cards should be a last resort, if you can obtain a regular (no fee) card from your bank, definitely go with that because you'll be able to establish a longer history with that account (granted you don't get into trouble).