Personal Finance

Multiple Ques. for Credit Score/History - Please Advise

  • Last Updated:
  • Aug 3rd, 2020 5:35 pm
[OP]
Newbie
Dec 23, 2019
19 posts
7 upvotes

Multiple Ques. for Credit Score/History - Please Advise

Hi RFD Fam,

Hope y'all are doing well and keeping safe! As stated before, I have a few questions pertaining to my credit history - I'm a newcomer to Canada with a history of close to 12 months:

1. Opened a chequing and savings account (NO CREDIT CARD) and there's a hard hit on the credit report from Tangerine. It is visible on the Transunion report and not on Equifax. Can I contest this? I gave the consent for only an identity check and it must've again impacted my score!

2. I opened an account with Operator X and closed it within 7 days (December '19) as I received a winback from my earlier operator. Out of the blue moon, i received the only and a final outrageous bill on 3rd March '20 which I discussed with the operator and eventually the reduced it to 40% of the initial after which it i made the payment on 6th March. It is reflected as the only late payment in my TU report and which i believe would affect my credibility. Can I dispute this as well since it wasn't my fault at all.

3. I have been keeping a tab on my score using Borrowell (Equifax), Credit Karma (TU) and my bank application which always showed a good score. However since i saw the hard checks on TU using Credit Karma, i went ahead and got the official reports from both TU & Equifax after paying a sum and to my surprise, the scores are considerably low and actually in the poor category. I was initially shocked since I haven't missed any payments till date (apart from #2 issue which isn't mine fault), having only a single credit card and the #1 hard check which came only after 7 months from the last one for the Operator X. I'm concerned with the TU report as the credit balances in that haven't been updated from June but in reality the balance is $0 from my end as all bills have been pid - but at the same time, it shows real time data as the hard check from Tangerine is visible. It has got me confused if the score is going to be yet updated or is it really that bad!!!

Could any of you please advise on how can I move ahead for resolution of the above 3? Thank you guys!!
8 replies
Deal Addict
Apr 5, 2016
4475 posts
3050 upvotes
Calgary/Vancouver
Won't be able to contest the Tangerine hit. People make too big of a deal of credit inquiries. Unless your credit was shit to begin with, then it's not gonna make a huge impact.

As for Operator X, you'll have to contact them to remove the derogatory rating. However, based on what you said, you may have a hard time contesting because you say it's not your fault, but it's still your responsibility to make sure the account is in good standing order. Need to read all the terms and conditions and any cancellation fees there may be. This is especially true for telecommunication and service contracts. The bill you receive may not be final and you'll have to follow up to make sure.

The credit reports gets updated as they receive information from the creditors. Creditors typically only update the statement balance. If you want to be safe, make sure the statement balance only shows around 30% of the limit. If you only have one credit card, you may want to try and apply for another one so you have a higher limit, which will decrease your utilization ratio.
Current Fido and Rogers customer.
Ex Koodo customer.
[OP]
Newbie
Dec 23, 2019
19 posts
7 upvotes
bomber17 wrote: Won't be able to contest the Tangerine hit. People make too big of a deal of credit inquiries. Unless your credit was shit to begin with, then it's not gonna make a huge impact. - noted.

As for Operator X, you'll have to contact them to remove the derogatory rating. However, based on what you said, you may have a hard time contesting because you say it's not your fault, but it's still your responsibility to make sure the account is in good standing order. Need to read all the terms and conditions and any cancellation fees there may be. This is especially true for telecommunication and service contracts. The bill you receive may not be final and you'll have to follow up to make sure. - the account shows closed/non-derogatory rating but still reflects one missed payment which is not even shown in the payment details for the account (all OK) but just a remark on the overall report (that the score is less because there's one missed payment).

The credit reports gets updated as they receive information from the creditors. Creditors typically only update the statement balance. If you want to be safe, make sure the statement balance only shows around 30% of the limit. If you only have one credit card, you may want to try and apply for another one so you have a higher limit, which will decrease your utilization ratio. - my utlization ratio is always less than 30%, I'll maybe wait for this month or the next month to check for changes.
Thank you @bomber17 for your prompt replies, much appreciated! I have put some responses in italics.

Also, are these agencies Borrowell/Credit Karma/Inbuilt Bank apps trustworthy or it is always better to pull from Transunion/Equifax directly?
Deal Addict
Apr 5, 2016
4475 posts
3050 upvotes
Calgary/Vancouver
BBThumbHealer wrote: Thank you @bomber17 for your prompt replies, much appreciated! I have put some responses in italics.

Also, are these agencies Borrowell/Credit Karma/Inbuilt Bank apps trustworthy or it is always better to pull from Transunion/Equifax directly?
Borrowell/Credit Karma all pull from Equifax/Transunion's consumer reports and score so it'll be the same. Lenders use a different beacon score when adjudicating applications. You won't be able to know this score unless you do a credit application and the person lets you see it. Technically, you're not suppose to see it anyways.

It's still a good tool to use to monitor your credit so I wouldn't dismiss them.
Current Fido and Rogers customer.
Ex Koodo customer.
Deal Guru
User avatar
Mar 23, 2008
11349 posts
7655 upvotes
Edmonton
BBThumbHealer wrote: Thank you @bomber17 for your prompt replies, much appreciated! I have put some responses in italics.

Also, are these agencies Borrowell/Credit Karma/Inbuilt Bank apps trustworthy or it is always better to pull from Transunion/Equifax directly?
The Borrowell/CK/Mogo/banks simply report what they’re given from the reporting agency. The difference is what “score” is displayed. The reporting agencies have a number of different products that are displayed and reported, so you need to check the fine print. For example, the banks and CreditKarma show TransUnion’s CreditVision product, I believe. Which isn’t the same product that TransUnion reports on their website. The algorithms used to calculate the scores are different, resulting in different scores even though they’re based on the same data.

And just FYI, often chequing account applications result in a credit hit. You can check to see if you missed something in the forms you went through.

C
Last edited by CNeufeld on Aug 3rd, 2020 3:56 pm, edited 1 time in total.
Deal Addict
Jan 15, 2017
3437 posts
2782 upvotes
2. You can dispute the late payment with Operator X, but remember if you were late making the payment, then the account details are correct. The dispute is irrelevant as you should pay on time and dispute after if you want to protect your credit score,

3. You are comparing apples to oranges. The free credit scores that you receive from Borrowell and Credit Karma are not the same product that a lender uses when underwriting a credit application. With only one credit card reporting on a relatively new credit report (as you are new to Canada) you should not be expecting a high credit score. It takes time for you to build a high credit score using different types of credit products.
Deal Fanatic
Apr 16, 2007
7860 posts
3120 upvotes
Financial District B…
BBThumbHealer wrote: Hi RFD Fam,

history of close to 12 months:

having only a single credit card

the scores are considerably low and actually in the poor category.
So you expect to have a good to excellent credit score for only 1 credit product that approx 1 year in age?
Not to be rude but your scoring range is exactly where it should be. Your credit profile is within the high-risk range not due to tardiness or derogs but for lack of credit experience.
Even if you used that card and made payments every reporting cycle your payment history is no more than 12 cycles. That is not nearly enough to get you in the scoring range that people take years to achieve.
Come back to this thread in approx 3 years or so and things would/may have changed subject to how many credit products you carry and history of payment performances.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
[OP]
Newbie
Dec 23, 2019
19 posts
7 upvotes
skeet50 wrote:
2. You can dispute the late payment with Operator X, but remember if you were late making the payment, then the account details are correct. The dispute is irrelevant as you should pay on time and dispute after if you want to protect your credit score, - the point remains, i was notified of a payment being generated only in March which i duly paid in 2 days post notification. The account was cancelled way back in December last year within 15 days (which technically should have been nil apart from activation charges as per contract) - this is why i got on a call with the operator and got it corrected. The account shows one late payment but closed/non-derogatory rating, not sure if I need to worry here?

3. You are comparing apples to oranges. The free credit scores that you receive from Borrowell and Credit Karma are not the same product that a lender uses when underwriting a credit application. With only one credit card reporting on a relatively new credit report (as you are new to Canada) you should not be expecting a high credit score. It takes time for you to build a high credit score using different types of credit products.
- noted and understood, thanks :)
mikeymike1 wrote: So you expect to have a good to excellent credit score for only 1 credit product that approx 1 year in age?
Not to be rude but your scoring range is exactly where it should be. Your credit profile is within the high-risk range not due to tardiness or derogs but for lack of credit experience.
Even if you used that card and made payments every reporting cycle your payment history is no more than 12 cycles. That is not nearly enough to get you in the scoring range that people take years to achieve.
Come back to this thread in approx 3 years or so and things would/may have changed subject to how many credit products you carry and history of payment performances.
Thanks Mike! I do understand credit building takes time and one doesn't reaches a magical figure of >800 overnight (just FYI, i had a score of >800 under Transunion from my native country in 6 years) however, when i started tracking my score an year back, it was close to 661 and then eventually rose upto 697 as per my bank app/borrowell and 644 as per Credit Karma (i only registered this month) .. what got me worried was it was close to 620 only when i pulled the actual paid TU report. So I'm not sure which one to trust?
Deal Fanatic
Apr 16, 2007
7860 posts
3120 upvotes
Financial District B…
BBThumbHealer wrote: Thanks Mike! I do understand credit building takes time and one doesn't reaches a magical figure of >800 overnight (just FYI, i had a score of >800 under Transunion from my native country in 6 years) however, when i started tracking my score an year back, it was close to 661 and then eventually rose upto 697 as per my bank app/borrowell and 644 as per Credit Karma (i only registered this month) .. what got me worried was it was close to 620 only when i pulled the actual paid TU report. So I'm not sure which one to trust?
Unfortunately scoring in your native country is irrelevant.
Even for our neighbours down south it's extremely rare for any lender to use their credit bureaus as security for how performances will occur here.

Moreover, do not get hung up on score numbers. Again, the fact that your credit bureau file will show when you were first known (since) on file plus reason codes stating thin file, these are data points that are hurting your ability to obtain credit the most.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again

Top