Credit Check Superthread- Merged Topics

[Occam]

Actually to add to my question, I owe a phone company and that has been put to collections, the other companies I do owe are not in collections yet, so when my recruiter contacted me only about the phone company I figured it must be showing in collections and all my other debts have not reached that point.. If I take care of the one in collections then obviously start paying my other debts would this be fine? Selections are in November 2012 according to my local RC for Infantry which gives me time to pay the phone company and start making payments on other debts. So would I be eligible for employment if I take care of debts in collections?

1.  Deal with outstanding debt, and make payment arrangements for those in collections
2.  Keep up your end of the arrangements
3.  Ensure your creditors update your credit file with the most recent, accurate info.

There's nothing more you can do.  It's the recruiter's call as to whether or not you're doing well enough.

 

[The_Falcon]

It's actually the MCC's call.

If you have any adverse information in your credit report chances are we will see it (note something does not have to be in collections, for it to be adverse).  Anything adverse will be flagged and brought to your interviewing MCC's attention, and they will discuss the issue with you and more than likely ask for proof that you are in fact paying your creditors.

 

[Neolithium]

1.  Deal with outstanding debt, and make payment arrangements for those in collections
2.  Keep up your end of the arrangements
3.  Ensure your creditors update your credit file with the most recent, accurate info.

There's nothing more you can do.  It's the recruiter's call as to whether or not you're doing well enough.

Just wanted to add something to your post as this was the route I personally had to take as well.  Check your local phone book for debt counseling services; there should be at least a few free ones that will have a quick interview with you and contact the companies you owe money to and can roll everything up into a single payment (Without a consolidation loan I should add) which is affordable for you.

Just about 3 years later and I'm almost completely free and clear, and the debt management program worked in my favour during the recruiting process (According to my MCC) because I was making the effort to fix everything.

 

[jasonh1234]

I have/had a horrendous credit issue which I recently declared Bankruptcy for.
All in all I was well over $200k in debt total at peak & was still at $100k in debt when I declared the Bankruptcy.
(Capital gains taxes on Stock options, defaulted loan, etc etc.) Terrible situation from years & years ago that was both my fault and an accountant's (That I should've looked into suing) :facepalm:

I've read conflicting information & opinions here on credit & bankruptcy matters in regards to recruiting & I'm crossing my fingers & hoping with every fibre of my being that I can still get in.  :-\

I did make attempts to pay my debts. Paid two student loans back in full, sold 4 bedroom house to pay debts & moved into a tiny 530 sq. ft. apartment but in the end, at the rate things were going it'd take a lifetime to repay the outstanding debts even via credit proposals. A bankruptcy was the only realistic & viable option for me.

I received an email that said:

Canadian Forces applicant:

The results of your background & credit check have been received as UNFAVOURABLE.

If you would like to retain your application with the CF, you must provide the following information.
 
1.    A letter explaining the following:
a.    What were the circumstances which led to this situation?
              b.    What was the final disposition/settlement?
              c.    What have you learned from this experience and how you will avoid such occurrence(s) in the future?

      2.    In case of any debt(s), please provide evidences of settlement in addition to the letter.
a.    Proof of payment in full, or
              b.    Proof of consolidation, or
              c.    Proof of established payment plan.

You may email, fax or drop off the required information at the recruiting center in XXXXXXXX.

You have 30 days from today to provide the necessary information or provide an update to your situation. If we do not receive a response within this time, your file will be closed.

Reply to this email as soon as you are able

As expected.

I'm certain I must be the biggest credit disaster to ever walk through the CFRC doors.

I've sent in the requested materials along with what I feel is an EXCELLENT letter that explains everything asked for in detail

All I can do now is wait anxiously. I'll report back.

P.S. Words of Wisdom in case I should be hit by a bus tomorrow... Never put blind faith in Money managers, financial advisors, and accountants. They have the potential to severely mess your life up.
I know I am ultimately responsible for my own situation though so please refrain from any bashing. You'd just be kicking someone who's already down.

 

[Occam]

I'm certain I must be the biggest credit disaster to ever walk through the CFRC doors.

While you might believe that to be the case, it's probably not true.  Declaring bankruptcy is taking a positive step towards dealing with unmanageable debt.

I can't tell you with any authority how the recruiting people view bankruptcy.  Were I a betting man (and I am), it's likely viewed more favourably than struggling with an unattainable repayment schedule.  What I'd also bet (but you really should ask the CFRC to be certain) is that the discharge proceedings from bankruptcy will be viewed as a "legal obligation" which would preclude your enrolment until it's been successfully executed.  Only nine months to go.

 

[jasonh1234]

Were I a betting man (and I am), it's likely viewed more favourably than struggling with an unattainable repayment schedule.

That's what I'm hoping for.

What I'd also bet (but you really should ask the CFRC to be certain) is that the discharge proceedings from bankruptcy will be viewed as a "legal obligation" which would preclude your enrolment until it's been successfully executed.

That's what I'm hoping is NOT the case. Although it seems quite possible.  :-\

Only nine months to go.

Eight. Although months feel like years when it comes to waiting for employment.  :

 

[The_Falcon]

I have seen way worse, and higher amounts.  What the MCC's are looking for is that you dealt with your issues in some manner, and that you are diligently working to make things better.  That said, if the matter of your bankruptcy is still in the court system then you will be put on hold, as it is still an unresolved judicial process/proceeding.

 

[jasonh1234]

...if the matter of your bankruptcy is still in the court system then you will be put on hold, as it is still an unresolved judicial process/proceeding.

Well the whole thing was taken care of at a trustee's office. Not in a court. My only real obligations are to pay the trustee's fee in $200 chunks. ($1800 total) and to not hide income.

 

[Occam]

Well the whole thing was taken care of at a trustee's office. Not in a court. My only real obligations are to pay the trustee's fee in $200 chunks. ($1800 total) and to not hide income.

Yes, but the actual discharge of bankruptcy takes place in a court - in your case, BC Supreme Court.

 

[jasonh1234]

Well... I'm totally crushed.
Just got home from a meeting with an Officer at the CFRC and was told essentially (totally paraphrased):

"Yeah sorry. Your financial history is just too bad and we have to look closely at factors like that. We have to be very diligent with reliability and background checks. Have you seen the news today? Try again starting from scratch in a year. 6 months at the BARE minimum."

I'm just....

Gah!

:crybaby:

 

[ketchup1001]

Quick summary of my situation:
I moved to Canada in 2006, got my citizenship in 2011. I started university and used student loans to pay for my tuition. About 90 (out of 120) credits in, I flunked out of my program. Now I have ~$20k in student loan debts, owe my university $3k and about $3k more on a couple credit cards. Not a good place to be! I've managed to pay most of my bills on time, but I suspect my credit rating is in shambles.
So, the question: would my financial situation make it difficult/impossible for me to get recruited? I'm looking at regular, not reserve.

 

[dapaterson]

Google is your friend.  Credit agencies will give you free copies of your credit report; it is likely worth the effort to get copies for yourself.

That way you can address concerns raised.


As to the impact on your application:  As always, it depends on what the credit check reveals, what you apply for, who else is applying, and any number of other factors that can only be addressed by recuriters.

 

[DAA]

Equifax Canada or TransUnion will provide free copies of your credit report if you mail in the application.  If your in a rush, you can do it online but at a cost.

Different credit bureau's hold different information, so your best to request reports from both of the above.

 

[mariomike]

I've managed to pay most of my bills on time, but I suspect my credit rating is in shambles.

You may find this thread helpful:
http://forums.army.ca/forums/threads/13319.0.html

 

[davidc538]

the news

That's actually crazy. Also will the recruiters bother anyone about there debt if it is student loans and around 10k or less? or are they just concerned about much bigger debts?

 

[PuckChaser]

That's actually crazy. Also will the recruiters bother anyone about there debt if it is student loans and around 10k or less? or are they just concerned about much bigger debts?

A lot of people have student loans. If you're not missing payments don't worry about it. If you have 3 maxed credit cards, a mortgage and are skipping payments, expect an issue.

 

[PrettyMaggie63]

There is a third Credit Bureau you should get a report through as well, Experian I think.

 

[DAA]

Well... I'm totally crushed.
Just got home from a meeting with an Officer at the CFRC and was told essentially (totally paraphrased):

"Yeah sorry. Your financial history is just too bad and we have to look closely at factors like that. We have to be very diligent with reliability and background checks. Have you seen  Try again starting from scratch in a year. 6 months at the BARE minimum."

The Credit Check is part of the "Reliability Screening" which is part of the application process.  So if you walked into the CFRC and were told this straight up, I would have to scratch my head....

GoC policy is...

'in arriving at a reliability screening decision, officials are expected to provide a fair and objective assessment that respects the rights of the individual. Individuals must be given an opportunity to explain adverse information before a decision is reached. Unless the information is exemptible under the Privacy Act, individuals must be given the reasons why they have been denied reliability status.

The authorizing manager will need to determine whether a person can be considered trustworthy, taking into account the assessments in articles 2.7.1 to 2.7.5 below."

Ref:  http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=12330&section=text

Further more...
"2.7.4 Credit check

The existence of negative information in a credit report can be but need not be sufficient grounds to deny enhanced reliability status.

Where adverse credit information exists, the authorizing manager must evaluate:
■To what extent the individual has changed habits with respect to financial reliability.
■The likely recurrence of financial difficulties and their potential effect on job reliability."

So whilst you may have an adverse Credit Rating, you must be given the opportunity to explain why and demonstrate that you have taken steps to resolve the problem(s).

If you are DENIED a Reliability Clearance, which is what they are doing, you can "Redress" the decision under Section 6 of the reference link above.

Let's face it, if you owned a home, were making your monthly payments, then lost your job and defaulted on your mortgage, is that reason enough to deny you future employment?

 

[DAA]

There is a third Credit Bureau you should get a report through as well, Experian I think.

They must be new on the scene, as the two major players are those I mentioned above and are also the most commonly used sources of Credit Information by most major employers.

http://www.fcac-acfc.gc.ca/eng/consumers/creditloans/reportscores/index-eng.asp

 

[MMSS]

You may want to speak with a few banks or credit unions regarding consolidation loans as well. One loan, one payment, rather than 3 or 4. Watch the interest rates of course, but might be worth looking into as it can make things easier on your wallet and mind.