Credit Check Superthread- Merged Topics

[LeonTheNeon]

From what I understand, unless it is abnormally excessive, having debt is not a problem.  Having a history of not paying your debts is regardless of the amount of debt.

 

[kincanucks]

First of  all being in the CF and declaring bankruptcy and being an applicant who is in the middle of a bankruptcy or has outstanding debt are two very different things.  If you have outstanding debt that has gone to collection then you will be required to prove that you are addressing this debt by providing receipts that you are paying it off on a regular basis or that you have paid the debt off completely.  Being financially sound is all part of the reliability process.  This issue has been addressed so many freaking times on this site so do some work next time.

 

[Franko]

...and on that note, LOCKED.

The Army.ca Staff

 

[Sixshooter]

Just one issue i have to ask and here i go.

I have recently enrolled in the infantry regular force, got my job offer (august 13th) and all that but have yet to be sworn in. Monday morning i got a call saying i need to pay off my credit before my process can be completed. I called today in regards to if i have to have it fully paid off or if i can just show the army that im paying it off on a regular routine basis. My question is since the girl voguely answered me saying to go to my bank, is, if i do indeed go to my bank, and am able to make a plan to say, have them take out payments every friday and put it towards the credit, will they accept that if i go into tomorrow and show them the plan (obviously a plan from the bank itsself), or do i have to wait until actual payments have been put towards the credit? I really want the process to go on since all i need is the swearing in and i dont want to wait another 6 months to go to bmq because of this.  My interest is not telling them im gonna pay it and not, but i do want to be able to get this over and done with quickly even if it was my ignorant-ness(?) that did this mess.

Thanks.

 

[scoobydoo]

I am in a similar situation as you are, and they just told me to have documentation showing that either I am paying it off (agreement) and as long as I am paying it that the creditors won't be taking legal action against me.. I still recommend that you call them back just to be sure , every case is not the same.

 

[formerarmybrat23]

my boyfriend has the worst credit R1 rating, plus most of his old debt is in collections. All he was told to do is get his creditor to write a note that he was making efforts to repay his bad debts.  A search of the forums will probably dig up more info, as you are certainly not the first to have this trouble. Good luck!

 

[KrissyJ]

Enroll in a not for profit Credit Counselling Service. If you are in Ontario. Credit Counselling Services of Eastern Ontario is a great place, if not there should be one in your province. (PM me and I can give you the contact information)  I enrolled and they basically call your creditors and make the plans for you. You pay them a set amount each month tailored to what you can afford. I got them to send a letter to my Captain saying that I am now enrolled in the program. This was sufficient and I am now merit listed waiting for an offer. He said as long as you are showing your taking a proactive approach to your debt then all is well.  Good Luck!

 

[KrissyJ]

I forgot to add all it takes is one appointment and they do the rest, it even shows up on your credit report that you are enrolled in credit counselling. The bank idea sounds good aswell though.

 

[camochick]

Doing a credit proposal, like Krissy has suggested, is almost like filing bankruptcy though so be aware that your credit will be affected for a number of years even after your debts are paid off and you may not be able to obtain credit. I've never had to use the service but i do know quite a few people who have , and essentially the credit councillors contact your creditors and make a deal with them, since they are probably not getting any money from you right now, they settle for a lesser amount and then the credit councillors get the money from you and pay them.

 

[Sixshooter]

i did hear about the credit counselling, but didnt know if they all had fee's or what, i'm gonna head over to the bank tomorrow and if nothing comes up, then i guess my best bet is the counselling. How long would it take if i did do the credit counselling for them to have a letter ready for the recruitment centre? Hopefully not toolong cause i still need my swearing in date to be set and i want to leave for that aug. 13th date.  :-\

 

[Sixshooter]

btw thank you for all the replys

 

[KrissyJ]

She is right, it does bring down your credit rating but it is not close to the same as bankruptcy. You can still get a credit card, a mortgage etc which would be harder if you declared bankruptcy. Well in my experience anyways and I have been with them for 2 years. I think I was told two years after it is completely paid off your credit rating goes back to normal. They also take away your interest so your actually paying principle. As for how long it takes, I had my appointment and then they wrote the letter right there. I would still try the bank first and see if that is suffice since it wont impact your credit as much. I hope you get in for the 13th!!!

 

[Sixshooter]

alright sounds good to me. im off. thank you very much

 

[Sixshooter]

well to update my process, i went to my bank and got a pre-authorized debit thinger, and that didnt happen because apparently they cant do anything like that after a credit card goes to the collectors, but i did make a credit counsilers appointment, but sadly its for july 23, so its gonna be a tight squeeze for my aug.13th leave, or ill have to leave another time, which im hoping doesnt happen.

im suppose to hear back from the army tomorrow so ill keep ya's posted  :-\

 

[Sixshooter]

called and the captain said if i pay a certain amount for the next two weeks the process will continue.  ;D

 

[KrissyJ]

Thats awesome! I hope you can come up with the money. 

 

[Sixshooter]

lol yeah i'll be able to. its only 100$ for the next two weeks. :s

 

[Fishbone Jones]

my boyfriend has the worst credit R1 rating, plus most of his old debt is in collections.

R1 is probably the best rating you can have.

R0 Too new to rate; approved but not used
R1 Pays within 30 days of billing, or pays as agreed
R2 Pays in more than 30 days but less than 60 or one payment past due
R3 Pays in more than 60 days but less than 90 or two payments past due
R4 Pays in more than 90 days but less than 120 or three or more payments past due
R5 Account is at least 120 days past due but is not yet rated R9
R6 No rating exists
R7 Paid through a consolidation order, consumer proposal or credit counselling debt management program
R8 Repossession
R9 Bad debt or placed for collection or bankruptcy

 

[Sixshooter]

never knew those rating, thanks

 

[formerarmybrat23]

either did I reeceguy. Thanks. I knew it was R something. But you get my point he has the worst you can have.
Mine is not bad, just a few late payments (it took me a while to realize internet and telephone banking has a processing wait time). I try not to worry about credit a whole lot. Its a stressor. Lots of variables can lower your rating. I swear once all my credit is paid off, I'm going to be a cash only girl. It seems like everyone has to learn that lesson, no matter how much the commericals and our parents tell us otherwise!