Credit Check Superthread- Merged Topics

[Robert0288]

I picked mine up when I was 17 and worked part time as a hockey referee.  Go in to your local bank and ask to talk to someone and explain your situation and request a small credit limit for the occasional online purchase, emergencies, coffee or what ever.  Most banks will also have credit cards available for students and young people as well.

I can't stress this enough though.  Pay off what you owe at the end of every month.  I've seen a bunch of friends screw this part up, and it never ends well.

In regards to your CF application, I, as distinct NON expert in the field can't see why a lack of credit history would hurt you.  Though developing a good credit history now when you are young will more than likely help you out later in life as you start looking for things like car loans and buying a house later in life.

edit:  I just did a quick google search and found that most, if not all major banks in canada offer secured credit cards, which allow you to deposit money on them first.  This from my quick look allows you to establish a credit rating without risk of spending money that you don't already have.  I suggest you take a look at this as a potential option as well.

 

[JSoff]

I picked mine up when I was 17 and worked part time as a hockey referee.  Go in to your local bank and ask to talk to someone and explain your situation and request a small credit limit for the occasional online purchase, emergencies, coffee or what ever.  Most banks will also have credit cards available for students and young people as well.

I can't stress this enough though.  Pay off what you owe at the end of every month.  I've seen a bunch of friends screw this part up, and it never ends well.

In regards to your CF application, I, as distinct NON expert in the field can't see why a lack of credit history would hurt you.  Though developing a good credit history now when you are young will more than likely help you out later in life as you start looking for things like car loans and buying a house later in life.

edit:  I just did a quick google search and found that most, if not all major banks in canada offer secured credit cards, which allow you to deposit money on them first.  This from my quick look allows you to establish a credit rating without risk of spending money that you don't already have.  I suggest you take a look at this as a potential option as well.

Well here's the thing I really don't need a credit card, besides the fact of raising my credit. Right now I have one of those Visa Debit cards from TD Bank which allows me to make purchases online without risks of messing up my credit and I can only use what I have. I would rather wait until I either get into the forces or if I get lucky get a stable job before I get into the forces.

 

[The_Falcon]

The CAF isn't looking for credit information to approve a loan, just that you are not a security risk.  Ergo the only thing that recruiting receives is ADVERSE (ie delinquent payments, bad debt write offs etc.) information.  If you have no credit file then it is not possible to have adverse information.

 

[DAA]

Here's my question, does no credit look as bad as bad credit? I only ask cause I don't have a credit card, don't have a cell phone or anything else that would raise or lower my credit. And considering I turned 19 in December its probably going to be blank.

Having no credit history would be the same as having a good credit history.  So don't worry about it.

 

[Crispy Bacon]

Not much can be done when you have no income -_- and cant get a job out of college

http://jobs-emplois.gc.ca/index-eng.htm

http://www.jobbank.gc.ca/home-eng.do?lang=eng

 

[PuckChaser]

I even searched it for you:

http://www.jobbank.gc.ca/job_search_results.do;jsessionid=77BF79FC2A745EC15D83A861A18C8288.imnav2?searchstring=hamilton&button.submit=Search

 

[legalrec]

Hi all,

I would like to add that good and bad credit are not the same as no credit.  Your credit score is based on your credit history.  When you get a credit report, it will list your score as well as all of your outstanding debts.  These debts will state whether they are being paid off as agreed (essentially are you paying the minimum monthly).  Your credit score goes up and down based on a multitude of factors, including but not limited to, applying for credit, defaulting on payments, increasing your limits and paying everything down. 

I was told when I was younger, and this was mentioned above, that if you do not have any credit history, get a credit card with your bank.  Get a reasonable limit and pay it off every month.  This is sometimes difficult for people, but if limit is only a $500 limit, the minimum should be easy.

This applies whether you are applying to the CF or not.  Starting a good credit score from a young age can help you a great deal later in life, trust me.

For more information, please read this information from the federal government.

http://www.fcac-acfc.gc.ca/eng/forConsumers/topics/creditLoans/Pages/CreditRe-Dossierd.aspx

M

 

[DAA]

I would like to add that good and bad credit are not the same as no credit.  Your credit score is based on your credit history.  When you get a credit report, it will list your score as well as all of your outstanding debts.  These debts will state whether they are being paid off as agreed (essentially are you paying the minimum monthly).  Your credit score goes up and down based on a multitude of factors, including but not limited to, applying for credit, defaulting on payments, increasing your limits and paying everything down. 

I was told when I was younger, and this was mentioned above, that if you do not have any credit history, get a credit card with your bank.  Get a reasonable limit and pay it off every month.  This is sometimes difficult for people, but if limit is only a $500 limit, the minimum should be easy.

This applies whether you are applying to the CF or not.  Starting a good credit score from a young age can help you a great deal later in life, trust me.

For an application to the CF, I really don't think they are looking for a "credit score".  Credit "scores" are used for the purpose of or with the intent of lending you money.  The CF are looking purely at credit "history".  Therefore, having either a "good" or "no" credit history, get's you the exact same check in the box.

Your comments are geared more towards "establishing" a credit history, which does help you later in life but doesn't necessarily help you with your application to the CF.

 

[legalrec]

Fair enough

Ok so I have a long winded question then...

If that's the case, then there must be some review of the extent of the credit and the reasons for the credit.  For instance, I probably have a lot more credit than the average person, but I also have 7 years of university that cost me a small fortune.  However, my income keeps me in a position that I can make my payments.  As such, I have a decent credit score.  However, if someone were to just look at my credit, they might be ill.

Therefore, does the amount of debt matter or is merely your history of paying as agreed and not going bankrupt, etc?  I have worked it out that a CF salary, even during BMOQ, would be sufficient to make all my payments...

I say all of the above knowing that it is a pretty specific question to me and I don't really expect an answer.  I'll speak with someone about it when I'm at the recruiting centre next!

 

[DAA]

Fair enough

Ok so I have a long winded question then...

If that's the case, then there must be some review of the extent of the credit and the reasons for the credit.  For instance, I probably have a lot more credit than the average person, but I also have 7 years of university that cost me a small fortune.  However, my income keeps me in a position that I can make my payments.  As such, I have a decent credit score.  However, if someone were to just look at my credit, they might be ill.

Therefore, does the amount of debt matter or is merely your history of paying as agreed and not going bankrupt, etc?  I have worked it out that a CF salary, even during BMOQ, would be sufficient to make all my payments...

I say all of the above knowing that it is a pretty specific question to me and I don't really expect an answer.  I'll speak with someone about it when I'm at the recruiting centre next!

Like I tell everyone and anyone.  Request your "free" credit reports through both Equifax and Transunion and the information you get, will be alot more than your CFRC gets.  Unless the report contains exceptionally high levels of debt or adverse information, it shouldn't be a problem.

 

[legalrec]

I get my credit report every 3 months because I got bamboozled into the Credit Alert program and I've been too lazy to cancel it.  :-\  I know that my debts are in the normal range for someone with a law or medical degree.  However, for most people it's an obscene amount of debt with no assets.  Anyway, we'll see how it goes.

Thanks for the response!

 

[DAA]

I get my credit report every 3 months because I got bamboozled into the Credit Alert program and I've been too lazy to cancel it.  :-\ 

I can tell you are already a "practising" lawyer.   

 

[legalrec]

Hahaha...  :nod:

I've had to get the bank to automatically take my money because I can't remember days (except the ones where I get to sleep more).

 

[The_Falcon]

Fair enough

Ok so I have a long winded question then...

If that's the case, then there must be some review of the extent of the credit and the reasons for the credit. For instance, I probably have a lot more credit than the average person, but I also have 7 years of university that cost me a small fortune.  However, my income keeps me in a position that I can make my payments.  As such, I have a decent credit score.  However, if someone were to just look at my credit, they might be ill.

Therefore, does the amount of debt matter or is merely your history of paying as agreed and not going bankrupt, etc?  I have worked it out that a CF salary, even during BMOQ, would be sufficient to make all my payments...

I say all of the above knowing that it is a pretty specific question to me and I don't really expect an answer.  I'll speak with someone about it when I'm at the recruiting centre next!

You ARE pretty lazy, I posted what information is received.  It's on this page about 6 posts up from your quoted post.

 

[legalrec]

I appreciate your response.  To be fair, and to be a lawyer, you didn't specifically say that a large amount of debt wouldn't be considered, as a factor separate from delinquency.  You said various things plus "etc".  There was some suggestion that the mere existence of a substantial debt would put you as a security risk.  I was just seeing if DAA had further information on the subject.  I apologize if I duplicated questions or information. 

 

[Goose15]

I appreciate your response.  To be fair, and to be a lawyer, you didn't specifically say that a large amount of debt wouldn't be considered, as a factor separate from delinquency.  You said various things plus "etc".  There was some suggestion that the mere existence of a substantial debt would put you as a security risk.  I was just seeing if DAA could help clarify some of the above information on the subject.  I apologize if I duplicated questions or information.

FTFY

 

[DAA]

I appreciate your response.  To be fair, and to be a lawyer, you didn't specifically say that a large amount of debt wouldn't be considered, as a factor separate from delinquency.  You said various things plus "etc".  There was some suggestion that the mere existence of a substantial debt would put you as a security risk.  I was just seeing if DAA had further information on the subject.  I apologize if I duplicated questions or information.

I depends on the dollar value, what the debt is for and whether or not you are making regular payments.

 

[legalrec]

Again, thanks for your responses. I will maybe draft a letter to put in my file explaining my debt. 

 

[DAA]

Again, thanks for your responses. I will maybe draft a letter to put in my file explaining my debt.

No need to explain anything, unless your CFRC asks you the question.  But it is always good to be prepared in case the subject does come up.

If they don't see an issue, then there is nothing that needs to be addressed.

 

[legalrec]

Aces.  Thanks DAA.  A wealth of knowledge, as always.