Credit Check Superthread- Merged Topics

[HavocSteve]

I'm in the same vote as most people here. I have some debt that went to collections, but I know the only way to deal with it is to call a bankruptcy agent and get the advice I truly need from someone who has experience in that field and to see what my options are. After that, I e-mail my Sgt. the papers stating that I am making payments to the parties that are owed and that the issue will be resolved in XX about of time. Only then can my case file manager sign my paperwork and give me a BMQ date. I could easily pay off the debt with the 13 weeks of training, but the Federal Government doesn't allow for me to join because the people who are owed can then sue the Federal Government. So only gaining employment and making some kind of payment plan will only get me further in life then I am.

This is speaking from what the Sgt. has told me in my last interview and also my own experience has been. So buck up, get some payments going, and get your file moving along. I have till April anyways to deal with my debt, and I want to get it done and over with since I'm someone who truly wants to be part of the CF. Where there is a will, there is a way!

 

[Occam]

I could easily pay off the debt with the 13 weeks of training, but the Federal Government doesn't allow for me to join because the people who are owed can then sue the Federal Government.

Ah, no.

I don't know where you got that, but it's wrong.

The CF doesn't want to hire you if you have outstanding obligations because you cannot be spared time to attend to financial counselling, court dates, meetings with trustees, and the like while you're trying to go through BMQ or trades training.  Your plate has to be clear before the CF will hire you.

 

[HavocSteve]

Ah, no.

I don't know where you got that, but it's wrong.

The CF doesn't want to hire you if you have outstanding obligations because you cannot be spared time to attend to financial counselling, court dates, meetings with trustees, and the like while you're trying to go through BMQ or trades training.  Your plate has to be clear before the CF will hire you.

I was told this by the 2 recruiting Sgt(s) that were in the room during my interview. (One was training and the other was scoring how well the other recruiter was doing, nothing to do with my interview at all). Both told me that the owing parties could seek the money from the Federal Government. This is what I've been told, I don't lie about little things nor big things, nor do I have the reason to do so.

 

[aesop081]

I don't lie about little things nor big things, nor do I have the reason to do so.

It is still incorrect.

Having your wages garnished is not "suing the government".

that the owing parties could seek the money from the Federal Government

No. The owed party seeks the money from you through the courts.

 

[Spring_bok]

Sorry to jump in here but would anyone agree that a credit check also helps to determine reliability and accountability?

 

[George Wallace]

Sorry to jump in here but would anyone agree that a credit check also helps to determine reliability and accountability?

Yes.  A most excellent point.

 

[Dunner]

Hello,

I can totally understand the purpose of the credit check and I also think that more employers should use it. However, It is simply one aspect of many that are used in the recruiting process.  I am recently divorced and that process completely ruined my credit. It is as bad as it can be without having filed for bankruptcy.  It came up during my interview and I explained the divorce situation.  My interviewer gave a quick comment on how little money one can make in the first few years of service and I promptly assured him that measures have been taken to correct the issue and that my new military income would more than suffice.

That was all I heard of it. 8 weeks later I received a job offer for a technical trade in the armed forces. 

I think the point is that there are many variables that are taken into consideration in this process and I don't think that any one thing in particular will sink you.  Especially if you score exceptionally will in all of the other aspects of the recruiting process.

 

[martr]

Dunner, I believe in your situation you demonstrated that you believe in accountability and "doing the right thing" by paying you bills. Too many people nowadays chose the easy way out and file for bankrupcty when they could potentially make arrangements to pay off their debt with a little work. In most cases, it would take some time and hard work, but it could be done. I'm not saying everyone can avoid bankruptcy, but certainly people are using it as a scapegoat to avoir responsibility.

The initial Relibility Status check is exactly that: to verify that you are reliable. If you are running away from your financial responsiblities by taking the easy way out just because it's there, how reliable are you as a person? (not you Dunner, but people in general).

 

[Occam]

Dunner, I believe in your situation you demonstrated that you believe in accountability and "doing the right thing" by paying you bills. Too many people nowadays chose the easy way out and file for bankrupcty when they could potentially make arrangements to pay off their debt with a little work. In most cases, it would take some time and hard work, but it could be done. I'm not saying everyone can avoid bankruptcy, but certainly people are using it as a scapegoat to avoir responsibility.

The initial Relibility Status check is exactly that: to verify that you are reliable. If you are running away from your financial responsiblities by taking the easy way out just because it's there, how reliable are you as a person? (not you Dunner, but people in general).

Let me clear up something for you.  Bankruptcy is anything but the easy way out.  There are very stringent conditions which need to be met before one can file for bankruptcy.  A trustee has to sign off on it, essentially stating that there are no longer any alternatives but to file bankruptcy.  Before being discharged, "surplus income" is paid to the trustee for disbursement to the creditors from the time of application to the time of discharge, normally nine months.

Life after bankruptcy is anything but easy.  Credit is difficult if not impossible to obtain.  Cash or cheque must be used to pay for everything.  Things like furnace oil deliveries have to be paid for in full upon delivery - consider what 900 litres of oil costs these days.  Renting a car is near impossible without a credit card.

You should seriously reconsider your position that bankruptcy is "running away from one's financial responsibilities".  In many cases, there are no other options left.

edit:  In Canada, there were 105,360 consumer bankruptcies, and 41,124 consumer proposals in the 12 months ending June 30, 2010.  I'm willing to bet there are people you know who have been bankrupt, and you don't even know it.

 

[martr]

Sorry, clearly I didn't voice my opinion the right way...

Yes, I'm aware that it's extremely difficult for individuals who have to declare bankruptcy, my father going through this right now. Declaring bankruptcy, in his case, was a last resort and he couldn't continue living without doing something as drastic as that. So for a lot of people, it's very beneficial. It's going to be hard for him to get his credit back in order, but he's doing it to take back control of his finances and I applaud him for it.

There are, however, a lot of people declare bankruptcy for the wrong reasons. I hear stories about people racking up tens of thousands of dollars in debt, having no intention of paying anything back and then declaring backruptcy to erase everything and start over. Those are the people that aren't, in my opinion, reliable.

So I think the whole idea of performing credit checks and subsequent interviews (if there are issues) is basically to learn how people are dealing with it: The right way, or running away from responsibility.

I'm truly sorry if I offended you.

 

[Occam]

There are, however, a lot of people declare bankruptcy for the wrong reasons. I hear stories about people racking up tens of thousands of dollars in debt, having no intention of paying anything back and then declaring backruptcy to erase everything and start over. Those are the people that aren't, in my opinion, reliable.

The stories you heard are mostly myths.  If you go on a spending spree, and then expect to be able to file bankruptcy and keep your stuff, you're in for a surprise.  Normally, trustees aren't in the business of repossessing stereos, cars, etc., but if it becomes apparent that a prospective bankrupt deliberately pushed themselves over the edge in an attempt to gain a lot of physical property before filing, the property will get seized as part of the process.  It's not out of the realm of possibility that fraud charges may result in extreme cases. 

So I think the whole idea of performing credit checks and subsequent interviews (if there are issues) is basically to learn how people are dealing with it: The right way, or running away from responsibility.

That is but a small part of the purpose of the credit check.  Other purposes include a gauge of one's integrity and honesty - if you make any attempts to hide or downplay bad debt, it will not be viewed favorably.  Bad debt makes one a higher risk for subversion and targeting by criminal elements, a consideration when seeking higher security clearances.

 

[Greymatters]

Bad debt makes one a higher risk for subversion and targeting by criminal elements, a consideration when seeking higher security clearances.

Actually, bad debt is equated to a person being more likely to commit crimes of opportunity for their own benefit - its the number one problem in retail/wholesale businesses across North America...

 

[HavocSteve]

One could act in the same way I just happened to do so. Oshawa/Durham Region is still in a bad spot because of the whole GM shutdown and closing of some lines which in turn hurt a lot of other business (hiring of people). I just moved to Ottawa and it only took me 4 days to land myself a receiving job, hopefully after some time, I can start a repayment plan. The recruiting office only wanted some proof of payments and to show that I am committed to making a difference in my financial situation. So the moral of this story was just to start fresh somewhere completely different which does have opportunities. I could still see myself not employed in Oshawa right now if I was to stay there. Hopefully this can inspire someone who was in the same position as myself and to do something about it.

 

[bpayne41@hotmail.com]

My recruiter mentioned something about paying up your phone bill.......I have a pay as you go plan and I was in debt as in mt account was minus a few times , I think the most was maybe $14 a few times but I have always paid them off .....will this effect my application ?

 

[Occam]

My recruiter mentioned something about paying up your phone bill.......I have a pay as you go plan and I was in debt as in mt account was minus a few times , I think the most was maybe $14 a few times but I have always paid them off .....will this effect my application ?

http://forums.army.ca/forums/threads/91910/post-908597.html#msg908597

You gotta search for stuff...these types of questions have all been asked before.

 

[MPwannabe]

All I can tell you is this:
My family is broke and I was the first one to pursue a post-secondary education. After college and university, my OSAP loan was just over $40,000. I have no other loans.
Since I've started the process of being recruiting as an MP, I've been completely honest and I haven't been held back yet in any way. I wouldn't worry about it, so long as you're always honest with everything.

 

[HavocSteve]

Quick question for a recruiter if one could answer my question. I have previous debt. Just basically started fresh over here in Ottawa, got a job and getting things started. I'm wondering if I take a personal loan out from my bank, then putting all my previous debt onto the loan (paying off everyone and being debt free from collectors and such). Would that be a better stepping stone into the CF and just making my monthly payments into the personal loan. Just basically wondering if that would be a better decision then trying to pay each on off separately.

Thanks for any input!

 

[Nauticus]

Quick question for a recruiter if one could answer my question. I have previous debt. Just basically started fresh over here in Ottawa, got a job and getting things started. I'm wondering if I take a personal loan out from my bank, then putting all my previous debt onto the loan (paying off everyone and being debt free from collectors and such). Would that be a better stepping stone into the CF and just making my monthly payments into the personal loan. Just basically wondering if that would be a better decision then trying to pay each on off separately.

Thanks for any input!

If it works for you financially, then it is a good idea. Having a debt won't necessarily make you unable to pursue the CF, but you have to show that you have made progress in paying it back.

 

[Occam]

Quick question for a recruiter if one could answer my question. I have previous debt. Just basically started fresh over here in Ottawa, got a job and getting things started. I'm wondering if I take a personal loan out from my bank, then putting all my previous debt onto the loan (paying off everyone and being debt free from collectors and such). Would that be a better stepping stone into the CF and just making my monthly payments into the personal loan. Just basically wondering if that would be a better decision then trying to pay each on off separately.

Thanks for any input!

Consolidating your debt can save you money only if you get a lower interest rate than your individual accounts are charging.  If you're into collections on some of the accounts, getting a consolidation loan could be problematic.  If you do get one, the rate may be high enough that it may not be worthwhile.  I would just work at keeping/getting the accounts in good order.  If you do pursue a consolidation loan, choose wisely when you approach the banks.  You only want to make one or two attempts - start with the bank you have the best relationship with.  If they turn you down, and another turns you down, don't bother continuing.  Making repeated attempts to secure credit will flag your credit file as "credit hunting", and your score will start to take hits.

 

[HavocSteve]

Consolidating your debt can save you money only if you get a lower interest rate than your individual accounts are charging.  If you're into collections on some of the accounts, getting a consolidation loan could be problematic.  If you do get one, the rate may be high enough that it may not be worthwhile.  I would just work at keeping/getting the accounts in good order.  If you do pursue a consolidation loan, choose wisely when you approach the banks.  You only want to make one or two attempts - start with the bank you have the best relationship with.  If they turn you down, and another turns you down, don't bother continuing.  Making repeated attempts to secure credit will flag your credit file as "credit hunting", and your score will start to take hits.

The thing is, my old past debts are over 1+ years old. Not to mention one says it has been court ordered (credit sheet handed to me by the Sgt on my interview). I never received papers or anything of the like and would like to just pay it all off and start paying towards one lump sum rather then chasing down each debt that is owed from a long time ago. I never thought that it would come back to bite me in the butt but it has and I'm thinking that doing a loan from the bank and paying now, by April, the recruiters might give me a shot because I'm putting a great effort towards to my finances.