Unpaid Credit card

[EEJ]

Hey everyone, I was a dilemma with a 2 year old unpaid credit card (I know). Well I was reading a bit about what I could do since the worst damage is already done. Would it be a better idea to just leave it till it's non-collectable and start rebuilding my credit right now (I've been approved for an auto loan with a co-signer) or just pay it off?

 

Advice much appreciated

[Guest w_a_y_n_e]

I'm surprised you were even able to get new credit with an unpaid debt on your credit, even with a cosigner. It's always advisable to pay all debts off, especially if you plan on getting new credit over the next few years. Normally lenders won't grant credit while there are unpaid debts on your credit, so count yourself lucky IMO

[LKH]

I'm surprised you were even able to get new credit with an unpaid debt on your credit, even with a cosigner. It's always advisable to pay all debts off, especially if you plan on getting new credit over the next few years. Normally lenders won't grant credit while there are unpaid debts on your credit, so count yourself lucky IMO

 

Ridiculous comment. That is why you use a cosigner - when your credit isn't perfect.

[EEJ]

CUETS FINANCIAL LTDPhone Number:(800)561-7849High Credit/Credit Limit:$3,000.00Account Number:XXX...Payment Amount:Not AvailableAssociation to Account:IndividualBalance:$3,489.00Type of Account:RevolvingPast Due:$3,489.00Date Opened:2009-07Date of Last Activity:2010-03Status:Bad debt, collection account or unable to locateDate Reported:2012-12Months Reviewed:Payment History:No payment 30 days late

No payment 60 days late

No payment 90 days latePrior Paying History:At least 120 days past due ( 2010-09 ) At least 120 days past due ( 2010-08 ) At least 120 days past due ( 2010-07 )Comments:Written-off

Monthly payments

 

This is what it says on my credit report. My score isn't as low as expected either. When they were phoning me I told them I had gotten laid off and I couldn't make payments and they offered to cut it in half if I could pay half all at once but i couldn't and they just stopped calling.

 

What do they mean by "written off- Monthly payments."

[EEJ]

sorry...

 

 

CUETS FINANCIAL LTD

Phone Number:(800)561-7849

High Credit/Credit Limit:$3,000.0

0Account Number:XXX..

.Payment Amount:Not Available

Association to Account:Individual

Balance:$3,489.00

Type of Account:Revolving

Past Due:$3,489.00

Date Opened:2009-07

Date of Last Activity:2010-03

Status:Bad debt, collection account or unable to locate

Date Reported:2012-12

Months Reviewed:

Payment History:No payment 30 days late

No payment 60 days late<br style="color: rgb(31, 63, 93); font-family: 'Trebuchet MS', arial, verdana, tahoma, sans-serif; font-size: 13px; line-height: 19px; background-color: rgb(242, 242, 242);">No payment 90 days late

Prior Paying History:At least 120 days past due ( 2010-09 ) At least 120 days past due ( 2010-08 ) At least 120 days past due ( 2010-07 )

Comments:Written-off<br style="color: rgb(31, 63, 93); font-family: 'Trebuchet MS', arial, verdana, tahoma, sans-serif; font-size: 13px; line-height: 19px; background-color: rgb(242, 242, 242);">Monthly payments

 

 

[breeze]

That's an accounting term meaning they "wrote it off" for tax purposes because it was considered a loss.

 

I"m not sure of the laws where you live. You need to know what is the statute of limitations.

[Guest w_a_y_n_e]

1357082699[/url]' post='4786211']

1357080400[/url]' post='4786206']

I'm surprised you were even able to get new credit with an unpaid debt on your credit, even with a cosigner. It's always advisable to pay all debts off, especially if you plan on getting new credit over the next few years. Normally lenders won't grant credit while there are unpaid debts on your credit, so count yourself lucky IMO

 

Ridiculous comment. That is why you use a cosigner - when your credit isn't perfect.

 

Ridiculous comment? You obviously know nothing about credit granting. A cosigner is required when your credit isn't perfect yes, but it's not meant to be a way of getting out of paying the debts you owe. If you defaulted on a credit product, then paid it off, you would have a bad mark on your credit. That's when a cosigner would come in. Go to any Canadian bank and apply for credit having an unpaid debt on your credit report and see what happens. You may get away with that in the U.S, but not here my friend.Now which is the ridiculous comment?

[breeze]

1357082699[/url]' post='4786211']

1357080400[/url]' post='4786206']

I'm surprised you were even able to get new credit with an unpaid debt on your credit, even with a cosigner. It's always advisable to pay all debts off, especially if you plan on getting new credit over the next few years. Normally lenders won't grant credit while there are unpaid debts on your credit, so count yourself lucky IMO

 

Ridiculous comment. That is why you use a cosigner - when your credit isn't perfect.

 

Ridiculous comment? You obviously know nothing about credit granting. A cosigner is required when your credit isn't perfect yes, but it's not meant to be a way of getting out of paying the debts you owe. If you defaulted on a credit product, then paid it off, you would have a bad mark on your credit. That's when a cosigner would come in. Go to any Canadian bank and apply for credit having an unpaid debt on your credit report and see what happens. You may get away with that in the U.S, but not here my friend.Now which is the ridiculous comment?

 

 

This is the original post. You are presuming you know the geographic location of the OP. You are incorrect. What is your problem? Do you have any constructive advice to give? Do you think berating someone who is in debt is a good way to help them handle their problems? If so, w.a.y.n.e. you are on the wrong board.

Hey everyone, I was a dilemma with a 2 year old unpaid credit card (I know). Well I was reading a bit about what I could do since the worst damage is already done. Would it be a better idea to just leave it till it's non-collectable and start rebuilding my credit right now (I've been approved for an auto loan with a co-signer) or just pay it off?

[EEJ]

Ya thanks for the moral advice. I already know I should pay it but I'm not here for that discussion if I had money at the time this wouldn't have happened.

 

I'm asking for my best interest and yes I'm in Canada, BC and yes I have learned my lesson.

 

I'm interested in building my credit, now in "X" years it disappears; it's already been 2 years so will it continue to do damage or has it already been done as it's written off ?

 

I have a different credit card and could get a auto loan if I decide to. So I know I can build my credit that way.

Edited January 4, 2013 by EEJ

[breeze]

The damage is done. I'm sure Canadian banks charge off debt in a manner similar to US banks. A co-signed car loan will help you get started. The only benefit to you from paying the old charge off would be if you could get it deleted, and I doubt that will happen. Canadian banks are more conservative than US banks. I think the worst possibility would be that if you apply for a car loan, or any kind of credit, it is a sign that you now have funds, and they might sue you for the unpaid balance.

 

Perhaps some other Canadians can help. Don't worry, we don't allow the "holier than thou" posters on this board. We assume you have your own conscience. We just explain what's legal and what isn't, to the best of our understanding. We're not lawyers or credit professionals, but we all have some kind of experience whether helping others, or through family and friends, and in some cases ourselves.

 

The Wayne types show up periodically. He's not the first, and I'm sure he won't be the last.

[breeze]

To wayne:

 

Don't get up in my face or LKH's face. We pay the bills here, and we're not going to let you do that. Not up for debate or discussion. we're just not going to allow it.

[L-Bo]

I'm surprised you were even able to get new credit with an unpaid debt on your credit, even with a cosigner. It's always advisable to pay all debts off, especially if you plan on getting new credit over the next few years. Normally lenders won't grant credit while there are unpaid debts on your credit, so count yourself lucky IMO

 

Ridiculous comment. That is why you use a cosigner - when your credit isn't perfect.

 

Ridiculous comment? You obviously know nothing about credit granting. A cosigner is required when your credit isn't perfect yes, but it's not meant to be a way of getting out of paying the debts you owe. If you defaulted on a credit product, then paid it off, you would have a bad mark on your credit. That's when a cosigner would come in. Go to any Canadian bank and apply for credit having an unpaid debt on your credit report and see what happens. You may get away with that in the U.S, but not here my friend.Now which is the ridiculous comment?

 

 

This is the original post. You are presuming you know the geographic location of the OP. You are incorrect. What is your problem? Do you have any constructive advice to give? Do you think berating someone who is in debt is a good way to help them handle their problems? If so, w.a.y.n.e. you are on the wrong board.

Hey everyone, I was a dilemma with a 2 year old unpaid credit card (I know). Well I was reading a bit about what I could do since the worst damage is already done. Would it be a better idea to just leave it till it's non-collectable and start rebuilding my credit right now (I've been approved for an auto loan with a co-signer) or just pay it off?

 

Nobody was presuming anything: 1. This is the Canadian Credit section of the forums. 2. CUETS is a well known Canadian lender.

 

The OP is looking for advice as it relates to credit in Canada, and it's a lot different here than in the U.S. For example, in Canada you can't artificially inflate your credit score by bribing your way out of having your true history show on your credit reports. Pay for delete is not permitted here.

 

And banks here are a lot more conservative than those in the U.S. Hence, while U.S. banks needed billions of dollars in bail-outs just to stay afloat a couple of years ago, each and every one of the large Canadian banks made billions of dollars in profits. This conservatism is why it is difficult to get any kind of credit whatsoever if you have an unpaid collection or write-off on your credit report here. My advice to the OP is to pay the debt if you can, and make sure you have no missed or late payments going forward. If you have one credit card at this point, adding a second (if anyone will approve one) can help build some more positive history. There are some places that may issue a lowish limit or secured card in your situation. Capital One comes to mind, as does TDs secured VISA, although TD will be pretty tough with an unpaid showing--even for their fully secured card. But it doesn't hurt to ask. Good luck OP! I too am in B.C. and I work for one of the Big Five, so I'm not talking out of my butt.

 

L-Bo