How do you fix a bad credit rating?

[chris lindberg]

Originally Posted by urban1

Back to the origial topic:

Order a free credit report from Equifax and Transunion. Google them and make sure you go to their Canadian websites. It will take a week or two to get your credit report. You can order it by phone or by mail.

Then go to a credit counsellor. As previous posters have mentioned, sometimes old debts are best left behind because even any contact with the creditor can reset the clock on the debt whereas otherwise it would have been dropped off your report if sufficient time has passed. A credit counsellors services can be obtained for NO cost.

Yeah, this happened to a friend of mine one time, she called to ask about getting a phone hooked up in her new apartment after six and a half years of having an outstanding bill with that same city phone company, and the lady on the phone told her, had she waited the full seven years the bad debt would have just been written off and the whole seven year cycle began again.

[metal_geek]

Your credit and your wifes credit are 2 seperate things. The only time your credit is considered together is if you need to use both your incomes to obtain credit.

Usually this happens with a mortgage, where both peoples incomes are added together if you need it to qualify.

It can also happen in a situation where say a wife with good credit, obtains alot of credit, and owes more then 75%, based on the fact the husband who was not considered in the loans is helping her make the payments. When she goes to get credit, her debt service ratio, and credit utilization is too high and dispite her immaculate payment record and perfect credit history she'll be denided credit. Forcing the husbands credit to be taken into consideration in order to "count" his income.
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Ferrari F2007

[chris lindberg]

Once again, thank you CP
Would the same hold true when starting a business?
Would the bank (or other lender of start up money) only look at my credit rating and past debts?


*I'm a real novice when it comes to talking credit cards as I've never owned one, What exactly is a secured credit card?

[I_H8_Crawford]

A secured credit card is a CC in which you put money up front to "guarantee" that you will not miss payments, IIRC.

[Crazy Flamer]

Originally Posted by Fobby

Missing a creditcard payment doesn't dent your credit ratings that much because the CC company charges what... 18% of interests.. but if you miss a mortgage/car payment.. big uh oh..

This is what the bank told me when they "forgot" to take out my final car payment. I am still waiting for them to fix my credit rating.. stupid bank... grr..

Actuallty, mortgages do not go on your credit rating.

[GrrlGoalie33]

Originally Posted by Fobby

Missing a creditcard payment doesn't dent your credit ratings that much because the CC company charges what... 18% of interests.. but if you miss a mortgage/car payment.. big uh oh..

As of right now, your mortgage does not show up on your credit bureau. I believe they are in the process of changing it.

[ken0042]

Originally Posted by Crazy Flamer

Actuallty, mortgages do not go on your credit rating.

I was shocked to find that when I pulled my credit report; that the biggest loan I have ever had- bigger than every other loan I've ever had combined, was not on there.

Talking to a buddy who does mortgages, apparently some banks are starting to put that info on there, and it will go on if you start missing payments.

[albertGQ]

If your mortgage is with one of those high risk credit places (and not a bank), then it will go on your bureau

[MoneyGuy]

I'm a financial planner. Just about all of the advice is bang on. Regarding using RRSP loans for purposes other than RRSP purchases, I do loans with various institutions and have never seen that option available. I'm not saying that no institution will allow you to do this, because, hey, it's their money and I guess they set the rules, but in many years in my business I've never seen it. Another poster said that you can't buy high-risk investments with an RRSP loan. You can. I've never seen any influence on the kind of investments one can purchase. I've done loans and put clients into high-risk stuff. If the OP has specific questions he can PM me.

A bit off topic but it was derailed before I got here.

On the credit question, posters are correct that fixing a bad credit rating is a long process that requires discipline and good decisions. Work at it and you'll get there. Just follow good credit practices and you'll get there.