Personal Finance

Student line of credit with old collection?

  • Last Updated:
  • Jun 14th, 2019 11:37 pm
[OP]
Newbie
Jun 12, 2019
1 posts

Student line of credit with old collection?

Hi there,

I have been researching like crazy but can't find any information, so thought I would post here for any insight (long time viewer, first-time poster).
I am in a professional program (law) and would like to apply for a line of credit. I will be entering my second year (I paid cash first year).
My question is, is it possible and has anyone ever been approved for a student line of credit with an old collections item that is paid?
Years back (but within the 6 year limitation period of credit reporting) I had an outstanding ticket that should have been torn up but wasn't. Long story short, it ended up being reported on my credit report. I paid it (I had to to get my license re-instated) but it still shows on my credit report (the ticket went delinquent in 2015 and paid in 2016). I contacted the company who gave me a BS "we can't delete it, its there forever" which is not true at all, but I just rolled my eyes and hung up the phone.
Otherwise, my credit is okay ish. I am hovering at around 700 EQ. with about 10,000 in accessible credit (33% utilization, which I can bring down to 0 if I need to).
I paid cash for my first year (I have a really good job that pays substantially well) but would like to have a LOC this year just to ease my workload a bit. Last year I relied on my credit cards which just had too much interest.

Is there any hopes of me being approved with this derog? A co-signer is a possibility, but not ideal.

Thanks in advance!
3 replies
Deal Fanatic
User avatar
Mar 23, 2008
9099 posts
5570 upvotes
Edmonton
RNtoJD wrote:
Jun 13th, 2019 1:13 pm
Hi there,

I have been researching like crazy but can't find any information, so thought I would post here for any insight (long time viewer, first-time poster).
I am in a professional program (law) and would like to apply for a line of credit. I will be entering my second year (I paid cash first year).
My question is, is it possible and has anyone ever been approved for a student line of credit with an old collections item that is paid?
Years back (but within the 6 year limitation period of credit reporting) I had an outstanding ticket that should have been torn up but wasn't. Long story short, it ended up being reported on my credit report. I paid it (I had to to get my license re-instated) but it still shows on my credit report (the ticket went delinquent in 2015 and paid in 2016). I contacted the company who gave me a BS "we can't delete it, its there forever" which is not true at all, but I just rolled my eyes and hung up the phone.
Otherwise, my credit is okay ish. I am hovering at around 700 EQ. with about 10,000 in accessible credit (33% utilization, which I can bring down to 0 if I need to).
I paid cash for my first year (I have a really good job that pays substantially well) but would like to have a LOC this year just to ease my workload a bit. Last year I relied on my credit cards which just had too much interest.

Is there any hopes of me being approved with this derog? A co-signer is a possibility, but not ideal.

Thanks in advance!
Really, what do you have to lose by trying?

C
Sr. Member
Mar 21, 2019
512 posts
442 upvotes
RNtoJD wrote:
Jun 13th, 2019 1:13 pm
Hi there,

I have been researching like crazy but can't find any information, so thought I would post here for any insight (long time viewer, first-time poster).
I am in a professional program (law) and would like to apply for a line of credit. I will be entering my second year (I paid cash first year).
My question is, is it possible and has anyone ever been approved for a student line of credit with an old collections item that is paid?
Years back (but within the 6 year limitation period of credit reporting) I had an outstanding ticket that should have been torn up but wasn't. Long story short, it ended up being reported on my credit report. I paid it (I had to to get my license re-instated) but it still shows on my credit report (the ticket went delinquent in 2015 and paid in 2016). I contacted the company who gave me a BS "we can't delete it, its there forever" which is not true at all, but I just rolled my eyes and hung up the phone.
Otherwise, my credit is okay ish. I am hovering at around 700 EQ. with about 10,000 in accessible credit (33% utilization, which I can bring down to 0 if I need to).
I paid cash for my first year (I have a really good job that pays substantially well) but would like to have a LOC this year just to ease my workload a bit. Last year I relied on my credit cards which just had too much interest.

Is there any hopes of me being approved with this derog? A co-signer is a possibility, but not ideal.

Thanks in advance!
Really, everyone’s situation is unique.
Some have reported success in obtaining credit with derogatory items on the credit bureau, others have tried relentlessly to no avail.
If you’re in a program and provide documentation of such, and have good income go back it, you may have very good luck obtaining what you desire.
But as Neufeld said, you have nothing to lose by trying.
Normally an old paid collection isn’t a problem as long as everything else is in order.
Newbie
Feb 26, 2002
88 posts
12 upvotes
Toronto
Credit score of 650 is typically the magic number. As previous RDFers have stated, each application will be different - amount of loan, employment, residence, age, etc.

Many banks have specialized Professional Student LOCs -

BNS - https://www.scotiabank.com/ca/en/person ... dents.html
TD - https://www.td.com/ca/en/personal-banki ... of-credit/
CIBC - https://www.cibc.com/en/student/student ... dents.html
BMO - https://www.bmo.com/main/personal/loans ... of-credit/

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