[El Bastardo]

The following is a submission from an anonymous Revscene member


So I have a pretty low credit score (yes I screw up when I was in my early twenties and I don't blame anyone). But I have paid off all my credit card debt 7 years ago, paid off my student loan last year. There was one debt that I wasn't aware off till this Jan which I paid off right away. It was a $7.10 charge from a cell phone company(funny story because when I call in and want to pay them, they don't even have my account info........).

Right now the only active account under my name are my Fido account and my credit card with capital one. I try to apply for another credit card but got decline. I went to the bank to see about this as I purchase a pre sale apartment that's to be completed in 3 years.

Most of the banks I went to either deny the mortgage because it is so far in the future and those that will pre approve the mortgage wants a co-signer for it. Most people I talk to suggest I should wait till about 3 to 6 months before the completion date of the apartment and try again. However, I am afraid the outcome will be same where I am going to get rejected or needs a co-singer. In terms of the apartment it is about 300k and I have enough to pay for half myself so I need to borrow about 160k to 180k from the bank. My credit score is around 680atm.

So is there anyway to increase my credit score from now till when I needed to apply for the mortgage in a few years? I could get co-singer but I really prefer now to if possible.

One of financial guys I talk to at the bank suggest I start apply for loans from his bank, take it out and put it in a chequeing account for at least 30days and then pay the loan back. That way it will show I am able to pay the loan back and thus increase my credit score but honestly this seems a bit weird.

[underscore]

Straight from the gov't https://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02178.html

tips from the G&M Nine steps to a better credit score - The Globe and Mail (http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/nine-steps-to-a-better-credit-score/article560880/)

[tiger_handheld]

Hi there

My friend has very bad credit history. Is there any company can help my friend to re-establish his credit history ?

Please kindly advice ASAP.

tell him to talk to a financial advisor from any major financial institution. theyre pretty good at these things

Assuming he has paid off his debt.

- Get copies of reports from transunion and equifax. They are free once a year. Figure out what's on the actual reports. Make sure things arent' reported incorrectly.
- Get a secured credit card from a reputable company (e.g. capitalone). Be responsible with it and pay it off on time.
- After a year, transition into a normal card. Be responsible.
- Wait.

http://www.revscene.net/forums/696199-need-advice-my-friend.html


Additionally..

The following is a submission from an anonymous Revscene member


......In terms of the apartment it is about 300k and I have enough to pay for half myself so I need to borrow about 160k to 180k from the bank.

you have 120k/300k saved up for a down payment? You realize that is 40% down payment? You know the CMHC requirement is 25%? with 40% down, the bank has decreased it's risk like no tomorrow. What's your salary like? If you make decent coin - you have made up more than enough for the low credit score. Get a mortgage broker and shop around...

[underscore]

you have 120k/300k saved up for a down payment? You realize that is 40% down payment? You know the CMHC requirement is 25%? with 40% down, the bank has decreased it's risk like no tomorrow. What's your salary like? If you make decent coin - you have made up more than enough for the low credit score. Get a mortgage broker and shop around...

I'm pretty sure CMHC is 20%, but either way OP is way over. A mortgage broker should at least be able to tell you roughly what you'll be approved for based on your income and whatnot, you don't necessarily need to be approved right now but you should probably know what the banks are willing to approve you for.

[meme405]

I'm pretty sure CMHC is 20%, but either way OP is way over. A mortgage broker should at least be able to tell you roughly what you'll be approved for based on your income and whatnot, you don't necessarily need to be approved right now but you should probably know what the banks are willing to approve you for.

You are correct, conventional mortgage is 20% down. That 20% is already WAYY up from the pre-2008 numbers which averaged like 10% down.

Kind of irrelevant though, if buddy guy has 40% down he shouldn't really have any trouble getting a mortgage, cause the bank can easily cease his house after he defaults and quickly sell it for way less than it's market value and still make more than their money back.

[Nssan]

its true for the banks to not really do anything right now on a pre-sale. Because they know everything can change in 3 years. However, with 40% down and current 680 is not really that bad of a score. If you keep up with the financial management then you should be no problem getting a mortgage in 3 years. Two knowns: 1, you have 40% now and growing 2, credit score is 680 and bound to go up (as it only records the last 6 years of history) 3. To really increase the score, charge the card for everything and make sure to pay it off every month. This way it shows you know how to manage credit.

[VanBCguy]

Increase your credit score fast? Use the card for simple things like gas and groceries. Make the minimum when the bill is received. Then pay off the rest of the balance back to zero approx. 2 weeks later. Watch your credit score sky rocket upwards.

[tiger_handheld]

Increase your credit score fast? Use the card for simple things like gas and groceries. Make the minimum when the bill is received. Then pay off the rest of the balance back to zero approx. 2 weeks later. Watch your credit score sky rocket upwards.

:suspicious:

why not just pay the whole thing at once? why wait 2 weeks after the min payment has been paid?

[mk1freak]

You get a percentage of a point for making payments on time iirc

[DaFonz]

Increase your credit score fast? Use the card for simple things like gas and groceries. Make the minimum when the bill is received. Then pay off the rest of the balance back to zero approx. 2 weeks later. Watch your credit score sky rocket upwards.

Your payment history is reported maybe once a month. That means it makes no difference whether you pay off in one amount by your due date or several amounts. It usually takes 30 days of being late to be reported to the credit bureau.

If one is ok with paying frequent payments (e.g. paying off the entire balance twice a month), then that helps you not because you're making multiple payments, but because it keeps your utilization down.

Doing what you suggest while harmless, won't do anything.

[mciroc]

If you have a family member with good credit and a visa they always pay and keep no or little balance ask if they will add your name to there card. You dont need to use it or even have a copy, but adding you, all there years of good payments will be viewed as good payments you made over the years, this will also lower your utilization as the un used balance will be shown when your credit is looked up also