Credit Check Superthread- Merged Topics

[Occam]

I understand. It's just Ottawa waiting on a credit check and I know I've made mistakes. I've done what was necessary in order to tell collections that I've lost my job and until I get employment, well... sorry but I can't do nothing. For me being only 21, the 15k or so debt that I do have (mainly because of a car loan), it seems impossible to get over since my hometown offers little for employment at the moment. That's why I asked about the bankruptcy, it would be nice to start "fresh" and just eat the bad credit rating (not like I don't already have one), and just move forward with the CF as a career. The only other thing is to pay some of the debt off with Income tax and hopefully the CF will be pleased with that.

Not lecturing here, but I would hope that the measures you've taken so far would involve selling the car, and applying the proceeds to the loan.  You'd be surprised at what lenders will be "content" with, if you are willing to sit down and make payment arrangements with them, in exchange for them telling the CF that you're in a structured agreement.  Offer them $50/month.  Most lenders will be happy to see something - anything - coming in on the debt, as opposed to you filing bankruptcy and they only see pennies on the dollar.

Another question:

If you get into contact with everyone you owe money to, and get them to mail you letters saying that if you do get employment from the CF, they will be pleased to get the monthly payments. Would the CF be content with that? or would some miracle be in order?

Not only do I think the CF would be leery of conditions like that, I think you'd have a hard time selling it to debtors.

I'm under the impression that a credit counselor is used when you have employment. As I am not employed, it seems that my options are very limited.

That's not true at all.  Credit counselors are often (but not always) trustees in bankruptcy.  They are the experts who you should be consulting to find out your best way ahead.  You should be aware that there may be minimum levels of debt required in order to qualify for bankruptcy, depending on where you live - so a trustee/credit counsellor should really be your next visit.

Free credit advice for you - get rid of 'all the people you owe money to' - consolidate your multiple owings into a single debt that is held by a reputable institution at a reasonable interest rate... 

That would be good advice - if he were employed.  ;D  There's not a lender out there who would touch him in this situation.

 

[The_Unabooboo]

  Here's a posser.  I am working on getting a consolidation loan but the problem I have been having is that I was layed off last fall and thier saying that I'm not currently making enough at my present job to qualify.  So if the debt is getting bad dispite my efforts to correct it and keep it good can it effect how the forces look at my eligability?

 

[Occam]

  Here's a posser.  I am working on getting a consolidation loan but the problem I have been having is that I was layed off last fall and thier saying that I'm not currently making enough at my present job to qualify.  So if the debt is getting bad dispite my efforts to correct it and keep it good can it effect how the forces look at my eligability?

It's a crappy situation all around.  You need the consolidation loan to get the monthly payments to a manageable level, but you're not making enough to qualify for the consolidation loan.  If a bank is one of your major creditors, it would be in their best interest to cut you the consolidation loan, because if they don't, you just spiral until you're forced to make a consumer proposal or file bankruptcy, and they'll only see pennies on the dollar.  Again, see a credit counsellor - they are the experts at getting you out of financial hot water, if at all possible.

Unfortunately, the CF is just going to look at it as an unresolved issue (assuming you're at the point where your credit rating is taking hits), and they won't enroll you until you have it resolved.

 

[Delta26]

FNG here,

I've got a question in regards to this topic. Currently my pay is being garnished for payments in an outstanding matter, and the amount owing is approx 4k. When i was on E.I. i was making payments on that amount as well. Will that effect the processing of my app?

 

[Neolithium]

I would check with your local CFRC - I had some outstanding debts when I applied but the staff here gave me some great advice, I went straight to one of the nonprofit credit counselling services and immediately made arrangements with them and started payments (The whole process with them was approximately a month before creditors agreed to the payment plans).  My MCC just requested that I bring a letter from the counselor handling my arrangements, a copy of the agreement and the receipts for payments being made.  The payments are quite small, everyone is happy and my application moved right along about a month after dropping the requested paperwork off. 

 

[Delta26]

see, there's the problem. it's to the government.

 

[gcclarke]

I'm not sure I see why that would make a big difference. The steps to resolve the issues are the same. Talk to credit counseling services, and use their help to make arrangements for payment to your creditors. Who you owe the money too, at worst, only changes the potential consequences if you do end up not being able to make any payments.

 

[stealthylizard]

I was having the same problem with some debt before I enlisted.  I contacted the collection agency, made a deal with them that I would pay x amount of dollars every month.  I then had them fax that agreement to the recruiting center to show the CF it was being dealt with.  That was all that was required, an "intent" to pay.

 

[2010newbie]

I monitor my credit history fairly closely; I have a credit watch service that notifies me when a change or enquiry is made and I download a copy every 3 - 6 months. Even though I've accepted an offer and my enrolment ceremony is in less than two months, there is no record of an enquiry (even a soft enquiry) by the CF or anyone else since I submitted my application. Do they have a sneaky way of checking credit that doesn't get recorded? I contacted the CFRC to ensure everything was completed and they said it was. I'm not concerned about the report, just thought it was weird that the enquiry didn't show up.

 

[Robbie4296]

I was having the same problem with some debt before I enlisted.  I contacted the collection agency, made a deal with them that I would pay x amount of dollars every month.  I then had them fax that agreement to the recruiting center to show the CF it was being dealt with.  That was all that was required, an "intent" to pay.

I did the exact same thing, instead of a fax, would a copy of my bank records showing the payments be just as good?

 

[Occam]

I did the exact same thing, instead of a fax, would a copy of my bank records showing the payments be just as good?

No, the recruiting centre needs proof that your creditors are happy with the arrangements that have been made, therefore you'd need to show the agreement you entered into.

 

[Robbie4296]

Guess I better give them a call pretty soon and get them to start faxing stuff to me, thanks for the reply Occam.

 

[HavocSteve]

Alright, here's the .pdf I got from a Major in Ottawa. Pertains to the credit check situation. It is called "Financial Difficulties".

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A person's financial situation is not necessarily a barrier to enrolment. There are a number of considerations when assessing the impact this would have on one's application that include, but are not limited to, the conditions surrounding the accumulation of the debt and whether or not the situation is deteriorating or improving.

Applicants who have credit issues should be aware of the CF policy on the consequences of a member’s failure to settle private debts as per the relevant CF Administrative Order (CFAO). This order states in part that “when it is evident that the indebtedness of a member is having a detrimental effect on the efficiency of the member and counselling has not remedied the situation, the Commanding Officer should consider a report of shortcomings for Officers, counselling & probation for NCMs and/or release from the CF under a suitable release item.”
Version

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[Occam]

Kind of goes along with everything that's been mentioned in this thread, right?

 

[Robbie4296]

Totally agree, I understood the entire thread, makes sense if you neglect some things, what else do you neglect? it was the providing proof thing I was wondering since alot of posts included "credit counsellers" where as I made arrangements directly with the collections themselves, I spoke to one today and they said they could not provide a letter to me for the CF so hopefully they will take my proof of payments in consideration, and made another deal with one today to drop the interest and cut it in half if I paid in full tonight, which I did, and they will send a letter of settlement anyways.

 

[HavocSteve]

Only thing is for myself, credit counselors sound awesome, if your employed. I haven't been able to even get a job at Tim Hortons for some reason, all the jobs in Oshawa are just sucked up so fast. I called one place, they want 500$ up front and every invoice that I have, which I do not have let alone all the paperwork (I was stupid but haven't the chance to make things right since no employment). Not looking for sympathy but right now, it seems my life is at a stand still. Kinda sucks, explained the situation at my interview with the Sgt. Hopefully after my CFAT at the end of this month, I can talk to the MCpl and hopefully pursued him with some fancy words (Doubt it), but the CF is something I've really wanted and I know my debt will be payed off before my first year ends. Just want a shoot at it, hopefully they give me a chance, all I'm looking for!

 

[Robbie4296]

If you contact the creditors, collections people directly and give them your situation and work out a payment plan, it should be fine.
Im my experience they don't really refuse any amount of payment given the amount owed and payment are somewhat realistic example-- you owe 10 000, and you offer 10.00 a month well thats not realistic and interest will swarm you if it hasn;t allready now if you owe 2500 and 50 to 100 a month now your talking, and barter with them, I owed 3000 and gave them my situation and we came up with a great deal, they waive all the interest and I pay 143.00/month, so from the original 3000 it went down to 1735.00!!! they want it closed and their money just as much as you want them to stop calling.

And another tip DON'T avoid them, it makes it worse trust me R9 is not cool, and while your paying them dont apply for any credit cards etc, inquiries in your credit bureau affects it big time.
A car dealership made 15 inquiries in mine some time, even though I told him if one finance company didn't approve leave it alone, he tried 15 companies and boy did it affect my score.How do I know all this well 2 good friends of mine work at Equifax and 1 friend is in collections!

 

[Neolithium]

Only thing is for myself, credit counselors sound awesome, if your employed. I haven't been able to even get a job at Tim Hortons for some reason, all the jobs in Oshawa are just sucked up so fast. I called one place, they want 500$ up front and every invoice that I have, which I do not have let alone all the paperwork (I was stupid but haven't the chance to make things right since no employment). Not looking for sympathy but right now, it seems my life is at a stand still. Kinda sucks, explained the situation at my interview with the Sgt. Hopefully after my CFAT at the end of this month, I can talk to the MCpl and hopefully pursued him with some fancy words (Doubt it), but the CF is something I've really wanted and I know my debt will be payed off before my first year ends. Just want a shoot at it, hopefully they give me a chance, all I'm looking for!

Contact the United Way near your location; I know around various other parts of Canada they have non-profit credit counselors; for my personal situation I only was charged around $90 for administration stuff (To cover the costs of them running credit checks, and correspondence with various creditors), their negotiations were great as well, I had the interest frozen so it's not continuing as I go through the debt management program, as well as a few thousand dollars knocked off altogether on it.  Depending on the size of the debts it may be a good option, my current payments are only around $211/month.  Same day I had the payments arranged and dropped off the first cheque my rep printed off a letter for the CFRC with her contact information and the details of the arrangements in case they had any questions. 

 

[HavocSteve]

Contact the United Way near your location; I know around various other parts of Canada they have non-profit credit counselors; for my personal situation I only was charged around $90 for administration stuff (To cover the costs of them running credit checks, and correspondence with various creditors), their negotiations were great as well, I had the interest frozen so it's not continuing as I go through the debt management program, as well as a few thousand dollars knocked off altogether on it.  Depending on the size of the debts it may be a good option, my current payments are only around $211/month.  Same day I had the payments arranged and dropped off the first cheque my rep printed off a letter for the CFRC with her contact information and the details of the arrangements in case they had any questions.

I like the idea of this, but my problem is seeking out employment to start making payments. I've been working hard to get employed (dressing in pants and proper shirt like you would for an interview) but I've only had 1 interview that has lead no where. The only thing I can think of is going to college but I would have to fake an address in order to get a school loan (Mother makes close to 150k herself let alone with my Dad's income on top). I haven't been a burden on our system (Haven't gone to unemployment or anything), because I was hoping to land a job quickly, but that doesn't look like it now. So I'm hoping that the CF can look past my burden with debt and could give me a chance and just put all my proceeds to my debt which I'm sure a clerk could do for me quickly or once I start BMQ, get in touch with a credit counselor and move forward from there. Kinda sucks when the only thing holding you back from joining is past debt history. I see why they do it, but for some people it's a true burden.

 

[aesop081]

but for some people it's a true burden.

And that is exactly the point. Its a burden to you and we dont want it to end up a burden to us.