Personal Finance

Please give me advice on repairing my credit

  • Last Updated:
  • Dec 26th, 2016 4:03 am
Newbie
May 31, 2012
13 posts
5 upvotes
Fort McMurray

Please give me advice on repairing my credit

Hi all,
I am looking to repair my credit, I went through some hard times a few years back. I have 2 collections on file, one is from 2008 November and the other is from 2009 Jan. TD took away my credit card in 2010 June, I still kept paying my balance on time for it though. I am now in a healthy financial state and I would like a game plan on the fastest way out of this mess. My debts are listed below my net income is $3800-4400 depending on overtime.

TD visa $6000
OSAP $7000
Collections $400
Collections $2000
Rent is $775
CIBC $11000

My credit score as of today was 637 and I wish to have it at 640-650 for now. I have $5000 in hand and I do not know which to attack first. Any advice? Please take it easy on me, I know I look reckless but sometimes life hands you lemons. But I do want to make it. Any inputs?
16 replies
Deal Fanatic
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Nov 2, 2013
5697 posts
1522 upvotes
Edmonton, AB
I'd leave Fort McMurray if I were you- I got myself into a mess there also. It is an expensive place and I don't mean to sound harsh, but that income level is very low for that area. I had a hard time getting ahead at around 4000/month up there. Even when I was inexperienced I made the same amount doing construction work down in Edmonton where it is less expensive and more pleasant.

Perhaps tackle your collections first if you're able to make the minimum payments on your CC debt and OSAP payment.
Accountant (Public Practice)
Newbie
May 31, 2012
13 posts
5 upvotes
Fort McMurray
FirstGear wrote: I'd leave Fort McMurray if I were you- I got myself into a mess there also. It is an expensive place and I don't mean to sound harsh, but that income level is very low for that area. I had a hard time getting ahead at around 4000/month up there. Even when I was inexperienced I made the same amount doing construction work down in Edmonton where it is less expensive and more pleasant.

Perhaps tackle your collections first if you're able to make the minimum payments on your CC debt and OSAP payment.
Hi,
I am in Edmonton that's where I live now, I created this account when I used to live in Fort McMurray. Thank you for your input that's what I was thinking too to tackle the collections.
Deal Fanatic
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Nov 2, 2013
5697 posts
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Edmonton, AB
wilayemu2000 wrote: Hi,
I am in Edmonton that's where I live now, I created this account when I used to live in Fort McMurray. Thank you for your input that's what I was thinking too to tackle the collections.
What work do you do here? The winter is coming so it's a good time to get into oilfield work. Use that as an opportunity to quickly wipe out your debts.

Consolidated Credit Canada also can help you deal with your CC debt. They consolidate it into one lower interest loan for you. Catch is you must close your CCs and you will not be able to apply for any until you are done paying your consolidated loan off.

The national student loan centre also has a support system where you can stop monthly payments and interest from occurring for 6 months. If you ever lose your job or become underemployed it is an option.

Hit your collections first and then the highest interest rate debt next. I am assuming this would be your CC.
Accountant (Public Practice)
Deal Addict
Dec 21, 2011
3518 posts
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Allenford
Do you have the interest rates on the non collections items? I'd knock out the collections first then throw the balance at the next highest rate item.
Deal Addict
Sep 11, 2006
2304 posts
950 upvotes
snow00774 wrote: Do you have the interest rates on the non collections items? I'd knock out the collections first then throw the balance at the next highest rate item.
If his Collections is from 2008 and 2009, doesn't it make more sense to just wait it out another 2 years. I think these things only stay on your credit report for 7 years, and at this point you might as well wait for it to fall off.

OP should probably pay off his credit cards first (whichever has highest interest) before they charge off.
Penalty Box
Apr 16, 2012
3565 posts
688 upvotes
Greely
wow...I have around the same credit score as you and I have never missed a payment in 10 years.

650
Banned
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Jun 2, 2009
2738 posts
181 upvotes
Toronto
techcrium wrote: wow...I have around the same credit score as you and I have never missed a payment in 10 years.

650
Yea I don't think op is being truthful here, when I had 1 collection on my record my credit was in the low 500's, no way you're at 630 with more than one collection account, anyway op right off the bat forget about paying the collection accounts, it's already a bad debt paying it won't make it any better, and will not improve your score. After 6 years they come off your report. Tackle whatever has the highest interest rate...see if you qualify for interest relief on the student loans. Obviously shelter is first priority I would pay 3 months rent and use whatever income you get In that time to tackle the debts
Idle hands are the devils playthings
Deal Fanatic
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Nov 2, 2013
5697 posts
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Edmonton, AB
techcrium wrote: wow...I have around the same credit score as you and I have never missed a payment in 10 years.

650
lol similar boat... I'm at 659 with a perfect payment history, 75% utilization (mbna 0% lol)
Accountant (Public Practice)
Banned
Sep 10, 2014
694 posts
145 upvotes
FirstGear wrote: lol similar boat... I'm at 659 with a perfect payment history, 75% utilization (mbna 0% lol)
There's your score killer right there. And some people on here are convinced it does nothing to their credit :facepalm:
Deal Addict
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Dec 12, 2006
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Messed Up Area
HeavenLeigh wrote: anyway op right off the bat forget about paying the collection accounts, it's already a bad debt paying it won't make it any better, and will not improve your score. After 6 years they come off your report.

If they make contact( phone or signed letter ) and you acknowledge( talk with them or make any payments ) the debt it resets this date.
Deal Addict
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Dec 12, 2006
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Messed Up Area
The collections will hurt and haunt you for a while. But since on there you can work your credit score above what it is and possibly to 700's quickly, as with collections they are either score 400-500, or they have been sitting on your file for a while and ready to drop in next 12 months. Read above about acknowledegment of debt, may add a few years as unknow what your settlemnt etc or contact with them is.

The best stategy is payout the highest interest rate 1st and keeping double/triple minimim paymenst on rest and work way through debts.

As well if you CC are past 50% utilization, this hurts you badly as well, since bad debt showing up already try and get these below 50% even if means eating kraft dinner for a few months.
Deal Addict
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Dec 12, 2006
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Messed Up Area
lovefreemoney wrote: There's your score killer right there. And some people on here are convinced it does nothing to their credit :facepalm:
Yup, I bet at 50% score would raise dramaticaly.

I've know people after bankruptcy coming from high 300's to low 400's and after discharge and keeping a secured credit card at 40-50% utilization have score high 600 low 700 in 2 years and people wonder how they can get approved for items after bankruptcy. And yet people who think great credit and 75-100% utilization and paying off each month scores are same.

It isn't magic but works over time.
Jr. Member
Nov 16, 2014
128 posts
11 upvotes
Markham, ON
i think you should pay off the collections, because it can be resold to another collection company and continue to hurt your credit score - try to get them removed if you can from the credit bureau
Deal Fanatic
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Nov 2, 2013
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Edmonton, AB
lovefreemoney wrote: There's your score killer right there. And some people on here are convinced it does nothing to their credit :facepalm:
You are right. I was at 875 I believe it was with 0% and <10 inquiries that year... then it went to *****
Accountant (Public Practice)
Newbie
May 31, 2012
13 posts
5 upvotes
Fort McMurray
I just wanted to thank all those who responded back then just a report back for those who might be curious:
Td 700$ paid $5300 and credit limit has always Ben $15k
Collections fell of my credit a year ago
Student loan $2500 owing
CIBC $1300 owing credit limit $30k
If anyone is struggling with debt but willing to pay it off a path appears so keep at it.

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