Quote:
Originally Posted by Phil@rise  Why was I able to secure financing on another car only a year after mine was repoed? Keep in mind this was some 15 years ago perhaps things were more slack? |
It is hard to say why. It could be a combination of reasons but things that come to mind are:
- the lien was not secured correctly against your name when you first got your vehicle = the credit line was never reported onto your credit bureau
- human error when assessing your credit the second time around
- were you the primary or secondary on the loan? again, depending on the finance company, human error occurs when registering a lien on the 2nd person
15 years ago is a long time and I'm sure credit buying trends have changed a LOT since then.
Quote:
Originally Posted by Phil@rise Do other bills given on a use service now pay later like phone hydro ets do they effect credit as well either good or bad as they are a necessity for life? |
It may be easier to explain it to you this way.
Never be late on:
- creditcards
- auto loans
- mortgages
- lines of credit
- bank loans
- any type of leasing, ie// musical instruments from Long Mcquade etc
Things that kind of don't matter as much if you were late paying:
- cell phone / mobility / cable
Hydro is never reported on your credit bureau as a "credit line". The only time I've seen hydro on a bureau is when it's gone to collections status. Any time you start getting collection calls, especially from 3rd party agencies, your debt's already been written off and sold to a 3rd party company to recover the debt and reported as so on your bureau. It will show as a Collection item and drag your Beacon down.
Tips on having a strong credit bureau:
1.) Don't be late paying your credit lines (creditcards, line of credits, auto loans, mortgages etc). As long as you pay the bare minimum prior to the due date, your creditscore will not be affected negatively. So if the minimum payment on your creditcard is $75 dollars, pay that $75 dollars ON TIME
2.) Don't go shopping for credit randomly at multiple places and not follow through
- "Shopping around" drives your credit score down. I see a ton of idiots going to Kingsway Honda, then Richmond Honda, then Burrard Acura applying for credit at multiple places. "Shopping around" is credit seeking, and when you do it too many times in a short period, it reflects very poorly on your creditscore. Each time a creditor pulls your credit, your Beacon score will go down.
The only reason people shop around is usually because one place turned them down, and then they go somewhere else... rinse and repeat.
If you wanna shop around and get a better deal, you NEGOTIATE a deal prior to having your credit pulled.
3.) Use your creditcard, then pay it off. Keeping a balance is ok, but try to keep the balance between 25-50%. Don't let it ride at max. Maxed credit drives your score down
4.) It's better to keep creditcards you don't use open, than to close them off by calling Visa/Mastercard and requesting the credit line closed. Sometimes, credit card companies will misreport the closure, and it ends up looking like a R9 write off. That isn't your fault, again it's human error.
There's more, but I'm kinda busy at work :P
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