Personal Finance

ING Direct 5Y GIC.

  • Last Updated:
  • Feb 16th, 2008 8:34 pm
Tags:
None
Banned
User avatar
Jun 20, 2007
574 posts
1 upvote
Toronto

ING Direct 5Y GIC.

Thanks everyone for the help!
14 replies
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
You were pretty stupid to not know that not paying your credit card is a bad thing.

Anyway, your only choice at this time is probably a secured credit card with more than 100% collateral (like 125% or 150%, 'cause the banks really don't trust you at this point). Check if CIBC has such a product, if they don't then go to TD.
Deal Expert
User avatar
Feb 9, 2003
19892 posts
4109 upvotes
9347934 downvotes
There's not much you can do, your score is going to be low for a while.

There's really nothing you can do other then wait.

Eventually, probably a couple years, you'll qualify for another credit card or an RRSP loan. When that happens, take it, even if you don't need the loan. That will increase the rate that your score rises.

After 6 or 7 years, this will fall off your credit report, and if you've been good with credit since then, you'll have a good score.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Capital One is pretty liberal in doling out credit cards. If you have no luck with the banks, try them. I've had customers who we would only give a credit card to with 150% security get a credit card from CapOne with less than 100% security and they allow 'em to go unsecured much sooner. Worth a try.
Sr. Member
May 27, 2007
853 posts
11 upvotes
Etobicoke

You were pretty stupid to not know that not paying your credit card is a bad thing.

Anyway, your only choice at this time is probably a secured credit card with more than 100% collateral (like 125% or 150%, 'cause the banks really don't trust you at this point). Check if CIBC has such a product, if they don't then go to TD.
Captial One will give him a secured card with 100%-120% security deposit. (the max credit limit you will get is 300-500 tho cause your score is problly pretty low right now)

Its not stupid, Thalo. I see a lot of young clients whom had no idea how to manage credit, and up on getting their credit cards, maxed them out and didnt even pay the min payments. And they had the money to make atleast the min. Its a hard lesson to learn, but hopefully its only a lesson you need to learn once.

There's not much you can do, your score is going to be low for a while.

There's really nothing you can do other then wait.

Eventually, probably a couple years, you'll qualify for another credit card or an RRSP loan. When that happens, take it, even if you don't need the loan. That will increase the rate that your score rises.

After 6 or 7 years, this will fall off your credit report, and if you've been good with credit since then, you'll have a good score.
This is useless advice. The bad debt has been paid in full. He can start with a secured card and using that properly will get him an unsecured card in 6mos to a year. Waiting 6 or 7 years for it too fall of will do him no good. The older the bad debt gets, combined with recent good tradelines will increase his score. Since this bad debt has been paid off, he should start rebuilding now, and within a 2-3 years he will have credit good enough to qualify for additional credit from the banks.

The underwriters aren't dumb. They know that young people often mis use credit, but if their bad debt is paid, and they have since shown responsible use of credit then the underwriters take that into consideration.
Capital One is pretty liberal in doling out credit cards. If you have no luck with the banks, try them. I've had customers who we would only give a credit card to with 150% security get a credit card from CapOne with less than 100% security and they allow 'em to go unsecured much sooner. Worth a try.

Don't go from bank to bank to bank looking for an unsecured card OP. You won't get one. Ask CIBC if instead of granting you another unsecured card, if they can offer you a secured one. If that fails go straight to capital one. They will give you a secured card no problem. Use that, paying the balance IN FULL every month (so, this means only spend on the card what you know you can pay off in full when the bill comes) and then after you've established history with the secured card, apply for an unsecured card. Best bet is to get an additional unsecured card from captial one or try citibank, mbna as they are more lenient than the big banks. The reason I said get an additional card is because you want 2 active tradelines in good standing to build your credit faster. As with the secured card, only spend on the 2nd card what you know you can pay off, and pay it off in full every month. Do not miss a pymt and be responsible with it and you should be fine.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
oeketer wrote: Its not stupid, Thalo. I see a lot of young clients whom had no idea how to manage credit, and up on getting their credit cards, maxed them out and didnt even pay the min payments. And they had the money to make atleast the min. Its a hard lesson to learn, but hopefully its only a lesson you need to learn once.
Yeah it is stupid. I had those customers too, they're stupid. I had one stupid kid I did a car loan for and a low interest visa. Came back 2 months later asking to do a consolidation loan. I told him straight up no, I won't do it. Start making at least minimum payments on your *@&#ing Visa and stop spending money on bling foo.
Sr. Member
User avatar
Aug 2, 2005
746 posts
10 upvotes
Georgetown, ON
Thalo wrote: You were pretty stupid to not know that not paying your credit card is a bad thing.
Thalo wrote: Yeah it is stupid. I had those customers too, they're stupid. I had one stupid kid I did a car loan for and a low interest visa. Came back 2 months later asking to do a consolidation loan. I told him straight up no, I won't do it. Start making at least minimum payments on your *@&#ing Visa and stop spending money on bling foo.

And still, banks wonder why they are so disliked by such a high percentage.

Perhaps witnessing the arrogance and hostility of some of their staff would shed some light ;)
Deal Expert
User avatar
Dec 11, 2005
20134 posts
2962 upvotes
Hubster wrote: And still, banks wonder why they are so disliked by such a high percentage.

Perhaps witnessing the arrogance and hostility of some of their staff would shed some light ;)
What would you have them do? Just keep giving free money to everyone?

How many breaks does a person have to get before they learn?

IMO 6 months to a year to build credit with a secured card is nothing. If you can't go 6 months without a credit line you have some serious budgetary issues.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Sr. Member
User avatar
Aug 2, 2005
746 posts
10 upvotes
Georgetown, ON
brunes wrote: What would you have them do? Just keep giving free money to everyone?

How many breaks does a person have to get before they learn?

IMO 6 months to a year to build credit with a secured card is nothing. If you can't go 6 months without a credit line you have some serious budgetary issues.

Would you kindly point out the sentence where I suggested anything about free money? Or requesting multiple chances??? Didn't think so. Stop jumping to conclusions because I had the audacity to questions an individual's empathy. The lack of it is oozing from every keystroke.

Gof forbid you or your family are ever unfortunate enough to actually require some respect and understanding from an individual who can make decisions concerning your financial future. Lets hope its not one with a hardon against an individual who was immature and follish or suddenly found themselves financially devastated.

OP admits right off the bat that he was young and follish with his usage of credit - consider the lesson well learned. Yet he still immediately gets called stupid. It's not all beacon scores and ratios - if you can't see beyond and between those perhaps you should reconsider being in a service business.
Member
User avatar
Nov 24, 2005
464 posts
4 upvotes
Toronto
Hubster wrote: Would you kindly point out the sentence where I suggested anything about free money? Or requesting multiple chances??? Didn't think so. Stop jumping to conclusions because I had the audacity to questions an individual's empathy. The lack of it is oozing from every keystroke.

Gof forbid you or your family are ever unfortunate enough to actually require some respect and understanding from an individual who can make decisions concerning your financial future. Lets hope its not one with a hardon against an individual who was immature and follish or suddenly found themselves financially devastated.

OP admits right off the bat that he was young and follish with his usage of credit - consider the lesson well learned. Yet he still immediately gets called stupid. It's not all beacon scores and ratios - if you can't see beyond and between those perhaps you should reconsider being in a service business.
+1 well said. We all make mistakes when were young, and props to the op for trying to get help.
Deal Guru
User avatar
Sep 21, 2007
13044 posts
11386 upvotes
...
you can sign up for a CT Optimus Card. My friends credit score is really bad. He can't get a CC from any banks, but CT allowed him to have one with a limit of $300 haha.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Sr. Member
May 27, 2007
853 posts
11 upvotes
Etobicoke
Hubster wrote: Would you kindly point out the sentence where I suggested anything about free money? Or requesting multiple chances??? Didn't think so. Stop jumping to conclusions because I had the audacity to questions an individual's empathy. The lack of it is oozing from every keystroke.

Gof forbid you or your family are ever unfortunate enough to actually require some respect and understanding from an individual who can make decisions concerning your financial future. Lets hope its not one with a hardon against an individual who was immature and follish or suddenly found themselves financially devastated.

OP admits right off the bat that he was young and follish with his usage of credit - consider the lesson well learned. Yet he still immediately gets called stupid. It's not all beacon scores and ratios - if you can't see beyond and between those perhaps you should reconsider being in a service business.
+2 Hubster.

Thalo, you really need to look at the whole picture. Someone who is in your office thats 35 years old and is still having credit issues. Clearly he hasn't learnt the lesson and is just irresponsible when it comes to managing his finances.

But just because someone is young, doesn't make them stupid. Working in a bank, your looked upon to give sound financial ADVICE. Like previously stated, the OP openly admitted in his first post that he was young and made a mistake, and it seems like he really understood the magnitude of his mistake and wants to take the steps to correct it. Is this someone you will tell to stop wasting his money on "bling"? Or, would you take the 10 min required to explain how he can improve from the current circumstance he is in?

Somone posted, how many breaks does someone get before they learn. Not many. But that being said, the fact that he is young and inexperienced with credit, but paid his bad debt in full, and then hopefully going forward, has maintained two tradelines in great standing... that tells us that the likely hood of defaulting again isn't as high. Obviously he won't get a 20k LOC or a 300k MTG right off the bat.... but like I said, small steps can be taken to improve your credit, and depending on the severity of your blemishes (OPs case not being that bad) it doesn't take as long as some of the people on this board might think. Especially if you are young and can demonstrate you've improved on managing your finances. The whole picture is taking into consideration, not just the beacon score, income and ratios.
Deal Addict
User avatar
Apr 5, 2003
2182 posts
96 upvotes
Toronto
I'm in agreement with Oek. Using the word stupid may be a bit harsh when the OP admitted that it was a mistake due to his youth. The problem is that many of today's youth aren't educated in the matters of personal finance. It's not taught in school, so unless they were taught by their parents or self-taught, they are ignorant to how important it is too have good credit.
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
oeketer wrote: +2 Hubster.

Thalo, you really need to look at the whole picture. Someone who is in your office thats 35 years old and is still having credit issues. Clearly he hasn't learnt the lesson and is just irresponsible when it comes to managing his finances.

But just because someone is young, doesn't make them stupid. Working in a bank, your looked upon to give sound financial ADVICE. Like previously stated, the OP openly admitted in his first post that he was young and made a mistake, and it seems like he really understood the magnitude of his mistake and wants to take the steps to correct it. Is this someone you will tell to stop wasting his money on "bling"? Or, would you take the 10 min required to explain how he can improve from the current circumstance he is in?

Somone posted, how many breaks does someone get before they learn. Not many. But that being said, the fact that he is young and inexperienced with credit, but paid his bad debt in full, and then hopefully going forward, has maintained two tradelines in great standing... that tells us that the likely hood of defaulting again isn't as high. Obviously he won't get a 20k LOC or a 300k MTG right off the bat.... but like I said, small steps can be taken to improve your credit, and depending on the severity of your blemishes (OPs case not being that bad) it doesn't take as long as some of the people on this board might think. Especially if you are young and can demonstrate you've improved on managing your finances. The whole picture is taking into consideration, not just the beacon score, income and ratios.
Okay, I didn't seriously call the guy stupid in my office, or a "foo", but I did try to steer him in the right direction. I told him kindly that I won't do a consolidation loan for him, that this simply isn't something we do for you regularly whenever the payments get to be too high. His credit card was already a low-interest card, so it was not that he wanted to reduce his overall interest rate, he just wanted to clear his visa balance so that he could spend again on bling. The guy had a serious problem. Every time I saw him he'd be wearing chains, fancy rings, nice clothes (note: he was whiter than I am) and his visa statement basically showed couple hundred at X jewellery store, couple hundred at Y jewellery store, $20 monthly payment, couple hundred here, couple hundred there.

Anyway, as far as calling the OP stupid, is more in agreement than to insult him. I followed it up with giving him a constructive suggestion. I was all about trying to help people fix their damaged credit when I worked in retail banking. The above example is one of someone who's gonna need someone's help in a couple years.
Banned
User avatar
Jun 20, 2007
574 posts
1 upvote
Toronto
Update:

Things are going good now :)

Top