Credit Check Superthread- Merged Topics

[JorgSlice]

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.

My parents consolidated all of their loans, credit card bills, mortgage onto a Manulife ONE Line of Credit, they were able to pay it off faster, with less interest than if they were to keep it all. They're still paying into their mortgage (fairly new house), but they said it's a lot more comfortable than before.

HOWEVER, be very, very, very careful with these sorts of things as mentioned by MMSS.

 

[The_Falcon]

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

Experian only handles American credit info.

 

[Ducimus BTC]

I am currently in the application process and over the years I have incurred some debt. I was advised by a recruiter at my local RC to start some sort of debt consolidation, which I have since started approx. 6 months ago. My question is am I expected to completely pay off this debt before receiving an offer? Or is the fact that I have a bi-weekly payment arrangement set up and I have been paying this debt off with no interruption seen as enough to start my career with the CF and continue this program?

 

[The_Falcon]

I am currently in the application process and over the years I have incurred some debt. I was advised by a recruiter at my local RC to start some sort of debt consolidation, which I have since started approx. 6 months ago. My question is am I expected to completely pay off this debt before receiving an offer? Or is the fact that I have a bi-weekly payment arrangement set up and I have been paying this debt off with no interruption seen as enough to start my career with the CF and continue this program?

Being in a DMP is not a show stopper, so long as you prove (through statements and the like) that you are in fact managing your debt, and that it won't be an issue to pay it given the starting salary of a PTE.  There is no real set amount of debt you can have.  It's the MCC's discretion (and sometimes his boss, and his bosses boss) based on government guidlines/policy for granting reliability status,  to decide whether to give you the thumbs up/thumbs down, based on the evidence provided by you. 

 

[Ducimus BTC]

Thank you for your response Hatchet Man,

I have provided my local RC with a payment history from my debt management company and plan to update continuously. I also know that this payment arrangement will be able to be maintained with a PTE (R) income. I guess I will keep chipping away at it.

Thanks again for the feedback

 

[ProtectAndServe]

I am currently in the application process and over the years I have incurred some debt. I was advised by a recruiter at my local RC to start some sort of debt consolidation, which I have since started approx. 6 months ago. My question is am I expected to completely pay off this debt before receiving an offer? Or is the fact that I have a bi-weekly payment arrangement set up and I have been paying this debt off with no interruption seen as enough to start my career with the CF and continue this program?

Lots of people are scared of this when it comes to debts. As long as you're doing something about it you should be fine. I had debts, it wasn't crazy debt, but debt is debt right? Just showed em I'm serious about taking care of it rapidly and was allowed to continue processing.

Keep doing what you're doing.

 

[Ducimus BTC]

I was contacted by my local RC today, I was told my file would be closed and I would have to wait 1 year because I started a debt management program. I could re apply online once the year was up. This concerns me because I originally joined on 2008 with debt, I did not start a DMP but showed my local RC I was making payments and my application was accepted, no problem.

My question is, is this a way to brush me off? I have heard of others applying with debt and just showing proof of payments like some of you have previously said. I did VR after basic, is this a test of my character?

 

[TheProfessional]

So I have submitted my application for the reserve with a recruitment referral this week. I don't have any debts, but last year, I was self employed and struggled with making money and was late on one, maybe 2 credit card and cell phone bills. I paid everything back though. I now pay my entire balance every month on my credit card and don't have any outstanding debt. But my credit score is not perfect. If I have no outstanding debt, I'm assuming this won't be a problem for my applicaion with the cf? Might they ask me about past late credit card payments? It was never for huge amounts either, a few hundreds at most, and I eventually paid the entire amount back. No outstanding debts and I was never close to bankruptcy or anything like that, I am still living with my parents. It was just late credit card payments basically. It's been dealt with as far as i'm concerned. I also signed up for automatic monthly payments with my credit card and cell phone companies to make sure this doesn't happen again. I know this might sound silly in comparison to some of the very serious debts and bankruptcy problems described in this thread, but is there any chance this could ruin my application, or am I worrying for nothing?

 

[krimynal]

Hello everyone , I just got done with all the test and got approved to all of them , they told me I would get a job offer ( as an armoured NCM in the reserve ) , but first I would have to clear all my debts , or at least take some payments options with them.


I already know how dumb I was younger for not taking care of this , but I mean now I'm trying really hard to get this thing done ! I just called the places where I owed money , and made payments arrangement , but they don't want to give me any type of paper that proves it , they told me "the only paper we are gonna give you , is the one when the payment is done and over with " but we took monthly payments .....


The recruiter told me I had to give them proof that I made some type of arrangements with them so .... I'm kinda stuck ... anyone been there before ? ( I did check the Credit Check megaThread ) but the people in there all seemed to have some type of paper proving everything.

 

[PMedMoe]

One idea is consolidating all your debts for one payment.  If that's not possible, see if you can't get a bank loan, pay them all off and then you have the bank paperwork as proof.

Of course, it all depends on your credit history too.

How are you making the payments?  If they are coming out of a bank account, a copy of the statements may be enough paperwork.

 

[krimynal]

Yeah we'll I can't get a loan , but I'm going tomorrow to the bank to see if my girlfriend could cosign one for me , If ever it works , I'll pay all of them with the loan and then pay the loan itself ( which would solve all the problems )

But I'm still thinking , if ever it doesn't work , I'm still trying to figure out a way , I tryed to call the recruiting center , no one seems to know how to do it , so yeah ...... I just want to join in ....... I knew this would probably become problematic once I did all my paperwork , but didn't think those company wouldn't give me a paper stating that we have an agreement

 

[Teager]

Once you start making payments if they are coming out of your bank account directly you can bring your bank statement showing payment. Black out all other personel info on the statement with a sharpie. I'm not sure if that will suffice for the military or not but it does show proof of payment.

 

[PMedMoe]

If they are coming out of a bank account, a copy of the statements may be enough paperwork.

Once you start making payments if they are coming out of your bank account directly you can bring your bank statement showing payment. Black out all other personel info on the statement with a sharpie. I'm not sure if that will suffice for the military or not but it does show proof of payment.

Is there an echo in here? 

 

[krimynal]

okay thanks a lot ! I'll see tomorrow , what will happen with the bank , and if ever it doesn't work , I'll try to show them a bank statement and try to see from that point.

 

[Teager]

My fault PMedMoe I must have missed the last line of your post.  :facepalm:

Happens when I'm a bit tired.

 

[krimynal]

the good point is that if 2 people say the same thing , it's probably true

 

[421_434_226]

Another option especially if you already have a poor credit history is to speak to your local Credit Counseling Service, these agencies can usually arrange it so you make a monthly payment to them and they, disburse it to your creditors. Makes for a payment history even if your creditors do not want to give you any paperwork and they quite often work for free or a small fee.

 

[krimynal]

thanks for all the different ways , I'll see tomorrow about the bank loan , if ever it doesn't work I'll check all those different options ! thanks a lot !

 

[DAA]

Another option especially if you already have a poor credit history is to speak to your local Credit Counseling Service, these agencies can usually arrange it so you make a monthly payment to them and they, disburse it to your creditors. Makes for a payment history even if your creditors do not want to give you any paperwork and they quite often work for free or a small fee.

I wouldn't jump on board this one too quickly.  Dealing with a "Credit Counselling Service" of any kind is a "reportable" activity to the Credit Bureau's and in some instances has a near similar effect on your credit rating as declaring bankruptcy.  If you do choose to go that route, then I would specifically ask that question to them.

Nevertheless, if you're making negotiated payments, then you should be getting monthly statements showing the payments being made.  The statements should be sufficient documentation as they should NOT being showing any "overdue" balances.

 

[The_Falcon]

I wouldn't jump on board this one too quickly.  Dealing with a "Credit Counselling Service" of any kind is a "reportable" activity to the Credit Bureau's and in some instances has a near similar effect on your credit rating as declaring bankruptcy.  If you do choose to go that route, then I would specifically ask that question to them.

This...A good Credit Counsellor will list all your available options, and debt consolidation through them should be your second last resort (bankruptcy being your last resort).  They will tell you this (or they should if they don't walk away).  Once you are in a debt management program your credit will tank, you WILL be required to give up all credit cards (they will run a credit check to see who all your creditors are, so you won't be able to hold one back.  Depending on how much debt you have and how much you can afford, will determine the length of time you are in the program, (from what they told me, 3-6 years is the norm).  Also your credit will also be negatively effected for a few years after you have paid of your debts (3 years for equifax and 2 years for Trans Union), so even if you pay it off early, you will still be seen a credit risk for several years after the fact.

A good credit counsellor (ie non-profits) will tell you upfront, your best option is go to your creditors yourself, and make arrangements that way.  You may still take a credit hit (lower score, and your available credit might be suspended), but it is a smaller hit than through the counsellors.  I speak with experience.