Credit application question

[lh0628]

Does anybody know what the word 'public record' mean in credit application situations?

I applied for a CC and was denied because the bank said they received the word 'public record' when my application was sent to Equifax, and they said once they see those two words, there's nothing they can do and they have to put a stop to the application.

This seemed odd because I was able to get a CIBC gold card no problem not too long ago, and nothing had changed since then.

Thank you.

[pitz]

A quick google search reveals this page:

http://www.essortment.com/home/publicrecordcr_sbhm.htm

Sounds like there's a judgement or lien on your record. I suggest that you contact Equifax (www.equifax.ca) and order a free copy of your credit report. If the item was reported to your file in error, then you can ask that it be removed.

If you have a relatively common name, then this can easily happen.

[lh0628]

Thanks pitz. I should have thought of googled myself.

I did have a loan sent to collections back in 11/03 and it was paid in full in 01/04. I have the report from Equifax already and everything seems to be up to date.

My question is, how come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

[brunes]

Thanks pitz. I should have thought of googled myself.

I did have a loan sent to collections back in 11/03 and it was paid in full in 01/04. I have the report from Equifax already and everything seems to be up to date.

My question is, how come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

It is possible Citi is using Transunion. I would request your Transunion report as well and make sure they are in sync.

[lh0628]

It is possible Citi is using Transunion. I would request your Transunion report as well and make sure they are in sync.

When I phoned Citi they said they use Equifax mainly and suggested me to call them. But I do have a TransUnion report as well from a while back.

[Salinger]

I get my credit report regularly due to an identity confusion on the part of the credit bureaus a few years ago (it's a long story).

There's a section on it called "Public Record" and it says it would include information on the following items if they were on your record:

Bankruptcy
Voluntary Deposit - Orderly Payment Of Debts, Credit Counseling
Registered Consumer Proposal
Judgments, Seizure Of Movable/Immovable, Garnishment Of Wages
Secured Loans

You definitely need to get your report and see what's on it if you don't think you should have any of these things. Thanks to CIBC Creditsmart Alerts, a few months ago I got notice that a collection had been placed on my Equifax report. I knew it was a mistake, and it ended up being a 10 year old MC (paid in full before being closed) from Canada Trust that TD had placed on there for some unknown reason. I had it removed immediately and have requested TD to investigate for me. Still waiting to hear back.

[lh0628]

Thanks.

Like I said, I have the report already. And I do have a collection under Public Record about a loan that was sent to collections back in 11/03, and it was paid in full in 01/04.

It also states such records will be purged in 6 years.

And my question was, again: How come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

[pitz]

Citi has suffered significant credit losses in the US. They might be pulling back on the lending in Canada.

[bcbgboy13]

And my question was, again: How come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

Do you have any recent banking relationship with CIBC - chequing and saving accounts, payroll deposits, investments, GICs, RRSPs, etc.
If you do - they may feel it is less risky to give you a CC (as if you do not pay your balance on time they may block some of your assets).

[lh0628]

Thanks pitz, that might be why.

bcbgboy13, I didn't have any relations with CIBC before the CC.

[logik]

I always thought all CC issuers have very similar standards, but maybe I'm wrong?

Although they my be similar, every bank has its own twist on risk management policies.

We would have to determine if CIBC systematically approved you or did they have an actual credit analyst review and evaluate your application? (Same question applies to Citi)

Does CIBC use TransUnion vs. Equifax and if so, does the 'derogatory' remark show on the TU report?

To touch on what Pitz said, some FI's (especially US based) have really evelated their standards when looking to approve a prospect Customer for credit. Depending on the situation, you could be approved for less than you typically would be, or straight out declined. It's great that you paid it off in '04, but it doesn't take away from the fact that it did go to collections and unfortunately, that doesn't sit well with some banks.

If it was paid at the beginning of '04, it should fall off in a year and a half or so, as long as their statement about the 6 year turnaround time is correct.

[Jucius Maximus]

It is possible Citi is using Transunion. I would request your Transunion report as well and make sure they are in sync.

I have a Citi MasterCard and my TransUnion report shows no inquiries from them.

[Salinger]

Thanks.

Like I said, I have the report already. And I do have a collection under Public Record about a loan that was sent to collections back in 11/03, and it was paid in full in 01/04.

It also states such records will be purged in 6 years.

And my question was, again: How come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

Sorry, I guess I was answering your original question where you asked what "Public Record" meant.

CIBC does use Equifax as well, so I'd say the safe bet is the relationship with CIBC. I do find CIBC has a more liberal credit granting policy than some of the other major banks.

[gman]

Thanks.

Like I said, I have the report already. And I do have a collection under Public Record about a loan that was sent to collections back in 11/03, and it was paid in full in 01/04.

It also states such records will be purged in 6 years.

And my question was, again: How come I was able to obtain a CC from CIBC no problem, but is turned down by Citi? I always thought all CC issuers have very similar standards, but maybe I'm wrong?

Different bank has different evaluation policy to interpret what the credit report says. Citi bank may have a clear cut no policy on 'public record' while CIBC may do a little bit digging about what is under your 'public record'.