Personal Finance

Ask me about Credit Scores

  • Last Updated:
  • May 24th, 2018 10:40 am
Member
May 30, 2011
423 posts
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Winnipeg
Could someone tell me whether or not this is a good plan...
Recently my mortgage has been paid off (ex purchased me out). I had a $5000 loan I took on August that I paid off this month.

I still have open a BMO credit card of $2500 limit (paid off) and a store card for Dufresne furniture $3000 limit, there are no stores where I live now by the way. So card is sort of useless.

I planned on closing both of the credit cards and opening a TD card - so all my banking was in one place. The BMO card is about 12 years old, it's my oldest card.

Will closing these and opening a new one have effects on my credit score that are really bad? Or is this an ok plan?
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Oct 10, 2016
758 posts
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License To Chill wrote:
Jan 20th, 2018 4:40 pm
We paid our CP off in 5 months., It has now been 1 year since it has been paid

Equifax is 660 and Transunion is 650.
Is their any point applying for a card with those scores?
If you have no card I would apply
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Aug 24, 2016
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estevens wrote:
Jan 23rd, 2018 1:25 am
If you have no card I would apply
Apply for what? Everything on the market? Certain credit card?
Clearly you don’t realize how serious a CP is.
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Jun 23, 2017
341 posts
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Toronto, ON
My credit Karma went up by 50 when I accepted an unsecured LOC offered by my bank earlier this month.

Do credit scores commonly go up when one adds a LOC?
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Aug 24, 2016
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905P4N6 wrote:
Jan 23rd, 2018 10:51 am
My credit Karma went up by 50 when I accepted an unsecured LOC offered by my bank earlier this month.

Do credit scores commonly go up when one adds a LOC?
It’s a revolving credit product, correct?
It’s available credit will lower your current utilization, which has a positive impact on the score.
50 points seems like a lot though.
Which score is this?
If Credit Karma, they switched scoring algorithms yesterday, so everyone’s score is different now.
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Jun 23, 2017
341 posts
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Toronto, ON
coolintheshade wrote:
Jan 23rd, 2018 10:59 am
It’s a revolving credit product, correct?
It’s available credit will lower your current utilization, which has a positive impact on the score.
50 points seems like a lot though.
Which score is this?
If Credit Karma, they switched scoring algorithms yesterday, so everyone’s score is different now.
Yes, this is a revolving credit product.
Yes, this was from Credit Karma.
I'm not certain when their new algorithm went into effect, but when comparing my score on January 10 and again this morning, it jumped by 50. All I did in the last two weeks was visit my home branch and accept that unsecured LOC my bank offered me.
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905P4N6 wrote:
Jan 23rd, 2018 11:10 am
Yes, this is a revolving credit product.
Yes, this was from Credit Karma.
I'm not certain when their new algorithm went into effect, but when comparing my score on January 10 and again this morning, it jumped by 50. All I did in the last two weeks was visit my home branch and accept that unsecured LOC my bank offered me.
The new algorithm was in place yesterday morning.
So your previous score pulled from CK on the 10th would have been TransRisk Score, and the score this morning would be the CreditVision Risk Score, so that explains your 50 point hike.
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Oct 10, 2016
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coolintheshade wrote:
Jan 23rd, 2018 9:06 am
Apply for what? Everything on the market? Certain credit card?
Clearly you don’t realize how serious a CP is.
I didnt specify but I'd go CTFS
Thats my opinion and CT are known to accept post BK-CP and people with derogatory ratings
No need to try to ridicule people
Jr. Member
Apr 25, 2011
198 posts
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Toronto
ROYinTO wrote:
Jan 22nd, 2018 1:59 pm
Personally, I would check your scores the next time you check your reports. If your scores are good enough to qualify you for a house or car, then just keep doing what you are doing. If they are not good enough then you've got 5 years to fix them up.
Hmmm, excellent point. Didn't think of it in that regard. Thanks!
Member
Nov 21, 2016
249 posts
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Toronto
Whats a better way to manage credit cards? I just checked my credit score on TU and was shocked to see score of 629.
I try to ensure that I don't have any debt, but apparently that hasn't helped.

I have a credit limit of 3500$. So anytime I make a purchase, I pay off within a day to maintain 0 balance.
Last time I made a purchase of 2500$ (3-4 purchases during boxing day), I paid within 2 days.
So I have 2 questions:
1) Will paying off my balance immediately impact my score negatively? I always try to maintain 0 balance. For the past year, any time I have a balance of 500$ or more, I immediately pay it off and do not wait for due date.
2) Will a purchase of 2500$ out of my credit limit of 3500$ have a negative impact? If so, should I start using my debit card more often for high value purchases?
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When can I expect closed accounts to fall off my credit report? These would be old credit cards that were paid in full.
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May 4, 2017
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Is there any way to remove a "public record" on my tax report for a car loan?! I cannot believe...! It decreased my score from 850 to 770! Never missed any payment in my entire life! They did a soft check a little earlier and it only reduced my score by 6 ! but 80 is a huge number!

Type Unknown
Status Unknown
Date Filed xx/xx/2017
How Filed Unknown
Reference Number xxx
Court HONDA CANADA FINANCE INC.
Remarks [ Balance not Available From Credit Grantor ]
Original Balance xxx
Security [Consumer Goods]

I need to remove this ASAP because I want to get a loan for a house...

Please advise.
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sacthegreat666 wrote:
Jan 24th, 2018 1:04 pm
Whats a better way to manage credit cards? I just checked my credit score on TU and was shocked to see score of 629.
I try to ensure that I don't have any debt, but apparently that hasn't helped.

I have a credit limit of 3500$. So anytime I make a purchase, I pay off within a day to maintain 0 balance.
Last time I made a purchase of 2500$ (3-4 purchases during boxing day), I paid within 2 days.
So I have 2 questions:
1) Will paying off my balance immediately impact my score negatively? I always try to maintain 0 balance. For the past year, any time I have a balance of 500$ or more, I immediately pay it off and do not wait for due date.
2) Will a purchase of 2500$ out of my credit limit of 3500$ have a negative impact? If so, should I start using my debit card more often for high value purchases?
1) I'm not sure but I do the same. Pay it off before you even get your statement. I'm assuming this would be a good thing because.....
2) credit utilization is one of the biggest things they look at. If you pay before your statement is issued then your reported usage would be 0. I'm not sure if 0 usage is better than 5% usage but it's definitely better than 80% usage.

So, no, don't use your debit card if you are able to pay off your credit card in full each month. At least this way you can continue to collect credit card rewards.
This message has been approved by the Office of the Mayor of Toronto.
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eagerbeaver83 wrote:
Jan 26th, 2018 1:13 am
Is there any way to remove a "public record" on my tax report for a car loan?! I cannot believe...! It decreased my score from 850 to 770! Never missed any payment in my entire life! They did a soft check a little earlier and it only reduced my score by 6 ! but 80 is a huge number!

Type Unknown
Status Unknown
Date Filed xx/xx/2017
How Filed Unknown
Reference Number xxx
Court HONDA CANADA FINANCE INC.
Remarks [ Balance not Available From Credit Grantor ]
Original Balance xxx
Security [Consumer Goods]

I need to remove this ASAP because I want to get a loan for a house...

Please advise.

How do you know this lowered your score? And this isn't a bad thing to be on your report.
Anyone who has a car loan or similar will have this on their report.

What else have you done recently that your score dropped that much?


I posted this exact question a few weeks ago and the response I got from @coolintheshade was:

"Public records due to collateral do not affect your credit score, because they are not a negative entry.
Public records can be non derogatory as well as derogatory. A lender will know the difference."
Member
Nov 21, 2016
249 posts
110 upvotes
Toronto
MayorOfToronto wrote:
Jan 26th, 2018 6:47 am
1) I'm not sure but I do the same. Pay it off before you even get your statement. I'm assuming this would be a good thing because.....
2) credit utilization is one of the biggest things they look at. If you pay before your statement is issued then your reported usage would be 0. I'm not sure if 0 usage is better than 5% usage but it's definitely better than 80% usage.

So, no, don't use your debit card if you are able to pay off your credit card in full each month. At least this way you can continue to collect credit card rewards.
I just checked my score on Equifax. It shows 770 vs 629 in Transunion! Which should I trust more!

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