I searched the old posts in this thread but couldn't get a definitive answer.
I'm trying to help out my GF and would like your input.
Current situation: She's a student at university. 1yr left on her engineering degree. She has a part-time job with a annual income in the 15-18K range. She currently has no active credit cards, only a checking account at BMO.
Without getting in much details, she had a few unfortunate events in 2012 and took out 2 CCs that later went into collections. She later made arrangements and paid them off. I pulled her credit report a couple months ago and we had to send some paperwork to EQ and TU to update the status of one of the cards since it wasn't reported as paid off. I pulled her report again yesterday. Her score is (unsurprisingly) at 571. The only active item in her report is her cellphone bill that is in good standing.
We want to improve her credit score and the first step would be to get her a credit card that she'd use to pay everyday expenses without carrying a balance.
Question 1: By looking at the dates and status of both cards that went into collections, can I expect them to disappear from her report around 2020 ? (DOLA + 7yrs ?)
Status: "Bad debt, collection account or unable to locate"
Date of Last Activity: 2013-01 / Date Reported: 2015-09
Comments: "Closed at consumer request" and "Account paid"
Status: "Status: Bad debt, collection account or unable to locate"
Date of Last Activity: 2013-01 / Date Reported: 2016-10
Comments: "Settlement made" and "Monthly payments"
Question 2: Is there any chance she'd be able to get approved today for an unsecured card ? I was reading about it online and found the unsecured (w/ 7$ montly fee) Affirm MasterCard that seems to be geared toward people with bad credit. Any better options?
Thanks for the help!