Personal Finance

I'm a Personal Credit Underwriter - Ask away

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  • Jun 18th, 2017 12:17 am
[OP]
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Sep 7, 2003
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grant wrote:
Jul 21st, 2007 11:23 pm
Mortgages are easier! (as in, you can get them with a weaker credit report).
Well now, if you want to bring security into the picture, then your still wrong - Secured credit cards are easier to get. And if you have a poor credit history you won't get NHA insurance.
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May 31, 2007
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How many "hard hits" on your credit score looks bad when applying for a mortgage? And what time frame do they use, one year?
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I would think, and maybe Hellfire can confirm, that it really depends on what type of customer you are. If you have a beacon in the 700s and you fit the mold of someone looking to purchase their first home or something and you happen to have recent hard checks from TD, BMO, RBC, BNS, etc you wouldn't be considered a high risk "credit seeker". If you were someone borderline, like beacon in the 600s, hard checks from all sorts of credit cards and consumer credit companies (like Wells Fargo, GE Money, Citibank, etc) then you would be considered high risk.
[OP]
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Thalo wrote:
Jul 24th, 2007 12:18 pm
I would think, and maybe Hellfire can confirm, that it really depends on what type of customer you are. If you have a beacon in the 700s and you fit the mold of someone looking to purchase their first home or something and you happen to have recent hard checks from TD, BMO, RBC, BNS, etc you wouldn't be considered a high risk "credit seeker". If you were someone borderline, like beacon in the 600s, hard checks from all sorts of credit cards and consumer credit companies (like Wells Fargo, GE Money, Citibank, etc) then you would be considered high risk.
Yup exactly. Note also for scoring, if you do all your shopping in the same week it only counts as one hard hit on your score.
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Dec 24, 2004
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basically, people worry too much about getting a hit on their credit report. its all weighted.

in plain english that means if you're an average working person with no bad debts , a few hard hits makes almost no difference.
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Dec 25, 2002
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Hi Hellfire :)

Here is our scenario. My husband and I are considering moving. We currently own our own home and would be moving to a new one. I have used online calculators and if they are accurate then we will qualify for more than we need. We will have zero debt aside from the mortgage but we have quite a bit of available credit (unsecured LOC, 3 major credit cards and 3 department store ones) We do not carry a balance but my understanding is that these things will still hurt us because we technically could run up balances on all of them) What would you suggest we should do in regard to this. Admittedly I am a little nervous getting rid of these - particularly the LOC because I like having the safety cushion. Is it sufficient to just reduce credit limits? (I think our visa is some ridiculously high limit - they keep increasing it) Will it look bad if we get rid of/reduce limits on these things? What about the LOC (with PC financial) Also I am a stay at home mother - will they hold it against us that my husband is our sole source of income? When we bought our first house almost 10 years ago we were both working - ironcially he now makes about as much now as we did combined 10 years ago but I'm wondering if they will have a problem with there only being one earner.

Thanks for any information you can provide :)

Kelly
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if you aren't carrying thousands of dollars of credit card debt it doesn't matter.
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Sep 8, 2006
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Hi Hellfire,

My Transunion credit report shows under "Public Information", a *Non-Derogatory* account with Scotiabank.

This was a car loan that was paid off when I traded-in the vehicle, and is shown correctly under the "Installment accounts" section, as closed, so why is this still considered Public Information?

My question really is, what do they mean by "non-derogatory" and who has access to this "Public Information"?

Thanks.
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tcmb168 wrote:
Jul 24th, 2007 5:34 pm
Hi Hellfire,

My Transunion credit report shows under "Public Information", a *Non-Derogatory* account with Scotiabank.

This was a car loan that was paid off when I traded-in the vehicle, and is shown correctly under the "Installment accounts" section, as closed, so why is this still considered Public Information?

My question really is, what do they mean by "non-derogatory" and who has access to this "Public Information"?

Thanks.
Stuff stays on your credit profile for 7 years after its paid.
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Hellfire wrote:
Jul 24th, 2007 1:17 pm
Yup exactly. Note also for scoring, if you do all your shopping in the same week it only counts as one hard hit on your score.
Hellfire, does this apply only for mortgages or for CC also?

Could I apply for 5 CC and, because it is all in 1 week, only count as 1 hit?

Not that I would ever do this, I am just curious.

Another question - I have a Sears card, which I never use - I find it hard to even justify charging something on it every couple of months when I can get my 5%+ rewards with my SPG mastercard.

You have mentioned several times as being a "bad card" to have. Should I just cancel it? Does it look bad to even just have it on my report, or is it better to just let it sit there?
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Hellfire wrote:
Jul 22nd, 2007 12:27 am
Well now, if you want to bring security into the picture, then your still wrong - Secured credit cards are easier to get. And if you have a poor credit history you won't get NHA insurance.
Ok secured CCs are different.

But plenty of people who cannot get regular CCs are quickly & easily approved for CMHC insured mortgages ... (i was one of them: several years ago, the banks were cancelling my CCs in the middle of my first property purchase). (dunno what NHA insurance is).
[OP]
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tcmb168 wrote:
Jul 24th, 2007 5:34 pm
Hi Hellfire,

My Transunion credit report shows under "Public Information", a *Non-Derogatory* account with Scotiabank.

This was a car loan that was paid off when I traded-in the vehicle, and is shown correctly under the "Installment accounts" section, as closed, so why is this still considered Public Information?

My question really is, what do they mean by "non-derogatory" and who has access to this "Public Information"?

Thanks.
Non-derogatory = Not bad, doesn't hurt you
Anyone who pulls your credit bureau can see that info.
[OP]
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grant wrote:
Jul 24th, 2007 11:43 pm
Ok secured CCs are different.

But plenty of people who cannot get regular CCs are quickly & easily approved for CMHC insured mortgages ... (i was one of them: several years ago, the banks were cancelling my CCs in the middle of my first property purchase). (dunno what NHA insurance is).
NHA is just a term used to cover both Genworth and CMHC.

And you can't compare a mortgage to an unsecured credit card, there are two totally different products. One the bank has your house as security the other they have nothing. So to be fair you have to compare a mortgage to a secured credit card and I've seen lots of mortgages (insured or not) be denied and very few secured credit cards be rejected.
[OP]
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brunes wrote:
Jul 24th, 2007 8:51 pm
Hellfire, does this apply only for mortgages or for CC also?

Could I apply for 5 CC and, because it is all in 1 week, only count as 1 hit?

Not that I would ever do this, I am just curious.

Another question - I have a Sears card, which I never use - I find it hard to even justify charging something on it every couple of months when I can get my 5%+ rewards with my SPG mastercard.

You have mentioned several times as being a "bad card" to have. Should I just cancel it? Does it look bad to even just have it on my report, or is it better to just let it sit there?
Yes, multiple checks in a one week period will only count as one hit, but keep in mind once you get the cards your score will take hefty hits because of the excessive amount of new credit you have obtained and the newness of your account. With a mortgage your generally going to only get one, and it doesn't count toward your score.

As for your sears just cancel it, the potential harm it can do is not worth having it sit there. Chase bank are horrible to deal with, and they are the ones who run the sears card - it was bad before and now its even worse.
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I've always wondered (and sorry if this has been asked already, I don't want to read through 36 pages), what is the rule on how you guys calculate revolving credit into TDS? Most applications I send through, the underwriter only considers 3% of the balances of credit cards, but on some applications they calculate based on 3% of limit. Does it vary from customer to customer and how they use credit?

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