Personal Finance

Ask me about Credit Scores

  • Last Updated:
  • Nov 9th, 2018 3:11 am
Deal Addict
Jul 18, 2016
2014 posts
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Guruguido wrote:
Feb 5th, 2018 4:31 pm
There's alot of factors determining why Capital One hasn't upped your current limit of $1K, even after 5 years of flawless payment activity as you say.

If I had to answer this, my guess is Capital one thinks;
#1 you either have enough credit extended under your name.
#2 there's something on your credit report that is not favourable (collection perhaps) hence why Cap One is hesitant on increasing your unsecured CC limit.
#3 your utilization ratio is high on your other CC account(s), which is a red flag to Capital One.
#4 correct any potential errors on your credit report.

Keep on using, and paying your Capital One account.
It's a matter of time before they will review your account, and automatically give you a credit limit increase.

Hope this helps, these are just suggestions, I haven't seen the whole picture, so it's difficult to come up with a more accurate answer, or solution.
I also went for several years on Capital One secured without a limit increase. Two things happened to change this: 1) The last collection dropped off 2) I applied for both a Walmart and a Canadian Tire credit card. It took 12 months after that of heavy use, and full monthly payment on my Capital One card, and suddenly they jumped it from a $750 limit to a 6K limit. In the meantime, I had already received a few increases on the Walmart and CT card.
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Jan 20, 2018
225 posts
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Toronto
bewiseman wrote:
Feb 5th, 2018 9:18 pm

I also went for several years on Capital One secured without a limit increase. Two things happened to change this: 1) The last collection dropped off 2) I applied for both a Walmart and a Canadian Tire credit card. It took 12 months after that of heavy use, and full monthly payment on my Capital One card, and suddenly they jumped it from a $750 limit to a 6K limit. In the meantime, I had already received a few increases on the Walmart and CT card.
I'm convinced the ultimate culprit is those damn collection, they really do more damage than most people realize, and I try to tell people that whatever you do in life financially, do not get a collection put on your credit report. Ever.

It's the "Hail Mary of Evil", well besides Bankruptcy, that is just an outright demon.

If you do have (unpaid) collection item(s) on your credit report, it does major damage to your scores, knocks out as much as 50 to 80 points, but it gets better, stays on both Credit Bureaus up to 6 Years (in Canada).
I'm not sure if it's from the date item is entered, or date of last collection activity.

I know someone mentioned this on RFD not too long ago, if I find the info, I'll link it here.

It's better to try, than sit around, and assume you can't do anything. Wrong attitude.

What you've done bewiseman is commendable, and others should follow your lead, a great positive example of what happens when you build up positive tradesline payment history, all the meanwhile, your collection drops off, all in due time....awesome!

That changes everything now.
Keep it up!!
Deal Addict
Jul 18, 2016
2014 posts
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Guruguido wrote:
Feb 5th, 2018 10:30 pm
I'm convinced the ultimate culprit is those damn collection, they really do more damage than most people realize, and I try to tell people that whatever you do in life financially, do not get a collection put on your credit report. Ever.

It's the "Hail Mary of Evil", well besides Bankruptcy, that is just an outright demon.

If you do have (unpaid) collection item(s) on your credit report, it does major damage to your scores, knocks out as much as 50 to 80 points, but it gets better, stays on both Credit Bureaus up to 6 Years (in Canada).
I'm not sure if it's from the date item is entered, or date of last collection activity.

I know someone mentioned this on RFD not too long ago, if I find the info, I'll link it here.

It's better to try, than sit around, and assume you can't do anything. Wrong attitude.

What you've done bewiseman is commendable, and others should follow your lead, a great positive example of what happens when you build up positive tradesline payment history, all the meanwhile, your collection drops off, all in due time....awesome!

That changes everything now.
Keep it up!!
The collection is part of it, but it is also about your spending pattern. Their automated system looks at your spending/paying and identifies what you need.

Most recently, I was pre-approved for a business credit. I was initially only given a 1K limit. My credit score and circumstance did not change. The only thing that changed was my spending pattern. I charged and paid a large amount of money over a period of three months. A few weeks ago, I requested a limit increase, and their automated system was happy to comply, increasing me to 5K.

Anyhow, recovering from bad credit is VERY possible. It just takes time. 4 years after my last collection fell off, I have jumped from a measly $750 limit on one secured credit card to unsecured revolving limits in excess of 100K.

Time. Perseverance. Good quality spending. Good quality and timely payment.
Deal Fanatic
Dec 28, 2006
5512 posts
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Kanata
In my transunion credit report that I got from credit karma, both my auto loans that I already paid off (paid on time on preauthorized payment) are showing in public record part, I don't understand why? and record type is showing "Misc Public Record", is it normal? Does it hurt my credit score?
Member
May 16, 2017
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rivet wrote:
Feb 8th, 2018 12:24 am
In my transunion credit report that I got from credit karma, both my auto loans that I already paid off (paid on time on preauthorized payment) are showing in public record part, I don't understand why? and record type is showing "Misc Public Record", is it normal? Does it hurt my credit score?
I'd check it directly from Transunion as "Public Record" generally means something filed by a court or legal registry - judgements, liens, foreclosures, and court discharges of debt-related items. A loan wouldn't normally show-up here unless it was paid out as part of some court-approved activity.
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Jul 18, 2016
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robsaw wrote:
Feb 8th, 2018 11:10 am
I'd check it directly from Transunion as "Public Record" generally means something filed by a court or legal registry - judgements, liens, foreclosures, and court discharges of debt-related items. A loan wouldn't normally show-up here unless it was paid out as part of some court-approved activity.
Car liens do appear in the public records section of a credit report. Toyota has one registered against me and did as of the first day I bought my new car.

It shows a maturity date on it, and I don't know if public records of this kind are supposed to be removed on the maturity date or if they remain for a few years after the maturity date.

Security: [Consumer Goods][Equipment][Other]
Remarks: [Balance not Available From Credit Grantor]
Class: Non-derogatory
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Jul 9, 2016
663 posts
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Peterborough
rivet wrote:
Feb 8th, 2018 12:24 am
In my transunion credit report that I got from credit karma, both my auto loans that I already paid off (paid on time on preauthorized payment) are showing in public record part, I don't understand why? and record type is showing "Misc Public Record", is it normal? Does it hurt my credit score?
yes a car loan is considered a secured loan, and those appear in the public records section. its not derogatory, just the way its classified
Member
May 16, 2017
325 posts
346 upvotes
bewiseman wrote:
Feb 8th, 2018 11:54 am
Car liens do appear in the public records section of a credit report. Toyota has one registered against me and did as of the first day I bought my new car.

It shows a maturity date on it, and I don't know if public records of this kind are supposed to be removed on the maturity date or if they remain for a few years after the maturity date.

Security: [Consumer Goods][Equipment][Other]
Remarks: [Balance not Available From Credit Grantor]
Class: Non-derogatory
Yeh, I thought about lien but didn't make the connection with car loan, of course in many cases that will be secured (with a lien registered against the vehicle title) and therefore will show-up as described in a credit report. I haven't financed a car using that kind of loan in 25 years, so didn't make the obvious connection.
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Apr 29, 2017
250 posts
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If I have a vehicle loan that I pay $500 monthly over the next 6 years, is there anyway I can make lump payments that would improve credit score?
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Jan 20, 2018
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Mitts87 wrote:
Feb 11th, 2018 12:50 am
If I have a vehicle loan that I pay $500 monthly over the next 6 years, is there anyway I can make lump payments that would improve credit score?
#1 Keep on paying every month as agreed.
#2 if you have access to online banking through your FI go to bill payments, Add Payee, Add account # associated with your vehicle loan, make additional payments to reduce your loan quicker.

If you plan to make a one time lump sum payment, I'd contact the lender/creditor, and ask them to calculate the vehicle loan payout amount.

They'll either ask you if you wish to make payment via online banking, or the lender can withdrawal the amount as a pre auth (one time and final) payment.

As for your credit score, over time, the balance of your loan gets smaller, and is reported to both (I assume) credit bureaus (in Canada), which is Equifax, and TransUnion.

Installment loans is reported differently when calculating utilization ratios, unlike revolving credit, such as a VISA or M/C CC, which makes a big difference on your credit report, try to make sure it's 35% or lower (a $1,000 limit, balance should be $350 or lower).
Your credit score will reward that behavior.

Never exceed 80%, a potential creditor will not look at it favorable, to them, it's a maxed out credit account, even at 80%, yes.

If vehicle loan is paid off in full, make sure it's reported to the Credit Bureau(s), and release the vehicle of its lien(s).

#Tip - you save even more on vehicle insurance (full coverage isn't required once vehicle lien is removed) but that's your choice if you choose down the road :)

Hope this helps.
Newbie
Jun 14, 2015
29 posts
5 upvotes
BC
I had almost an identical situation as a poster on page 281.

I cancelled my small plan with Koodo and switched to their prepaid plan using the same phone #. I didn't pay the tab balance, now it's showing as 30-59 days late payment on Credit karma.

My credit score went down from 811 last Friday on Feb 9 to 688 this Monday Feb 12.

During this whole time, Koodo only sent me an email last Thursday notifying me to pay before Feb 21 before the outstanding balance is sent to a collection agency. I got on it right away, spoke to a rep this past Sunday, there was a billing error, she kept saying the billing amount is right and saying I misunderstood the bill, never checked with a supervisor so I didn't pay on Sunday, then yesterday on Monday the late payment report showed up on Credit Karma.

I just called again today, another rep was able to help me and verify with a supervisor that there was in fact a billing error, so they corrected the amount and I paid right away online.

Don't know if I paid on Sunday, if it would've made any difference, maybe the late payment report wouldn't have been documented.

Plus this whole time, Koodo didn't send me any balance owing via text or email except last Thursday which left me barely any time to react, and I reacted right away, but they reported my late payment right away on Monday, then what's the point of sending me an warning email to me if you don't give me any time to respond, plus your rep wasn't able to help correct your own mistake on my bill?

I always get my payment dues notifications via texts and emails during the past few years, I have been with Koodo since 2010.


Would I be able to talk to a supervisor or a manager from Koodo to get the late payment report removed? Anyone has any past experience on this? What other things can i do in this situation?


I have fault in this, but I don't think it's entirely on me, the mistake the first Rep made cost me the opportunity to make the payment on Sunday, which ultimately resulted in the late payment report made on Monday. Plus I didn't get any notification the 2 months I missed my payment.

I feel like shit, my perfect history of payment ruined by one instance. I was thinking of cancelling my current MC and applying for a new one... and plan to apply for a house mortgage in a year... **** me.
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Mar 9, 2012
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Kitchener
MayorOfToronto wrote:
Feb 5th, 2018 12:36 pm
Had a guaranteed CapOne card (not the secured one) for about 5 years. Haven't missed a single payment and I usually pay before my statement is made.

Yet they haven't increased my limit. I have a cards with 10k limits yet my CapOne is stuck at 1k.
Well that is odd. I've had a Capital One for about 12 years or so. Now that I think of it, I haven't been offered an increase in about 5 years. So I think CapitalOne might have had a policy shift, perhaps one needs to ASK for an increase now.
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Mitts87 wrote:
Feb 11th, 2018 12:50 am
If I have a vehicle loan that I pay $500 monthly over the next 6 years, is there anyway I can make lump payments that would improve credit score?
You will see maximum credit score benefit after 24 months reported as paid as agreed.
Paying it in full after that will do little to improve your score.
Just don't pay it off before the 24 months if you want max score benefit.
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Apr 29, 2017
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coolintheshade wrote:
Feb 15th, 2018 6:30 pm
You will see maximum credit score benefit after 24 months reported as paid as agreed.
Paying it in full after that will do little to improve your score.
Just don't pay it off before the 24 months if you want max score benefit.
Appreciate that, have only had for 6 months so good to know. I'll wait to start putting lump sums.
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Oct 8, 2012
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TBD
Do credit card accounts ever fall of your credit report? I'm talking about ones that were closed but paid off in full and never overdue.

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