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Debt question



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66 Responses

  1. Diane Peters Diane Peters says:

    That is not how it works. Please go to a credit counselor.

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  2. Leona Aquin Leona Aquin says:

    Yes it is true, i had very bad credit in 2009 i did apply for credit card to see, and yes i got it it was only for $300. but it’s a start.

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  3. Dale Isley Dale Isley says:

    It’s takes longer to rebuild your credit and if you default on loans with a specific creditor or bank they may never take you again. Even 10 or more years later.

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  4. I sure hope not. My old tenants owe me thousands, so it better follow them for life.

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  5. Mel Maurice Mel Maurice says:

    It’s true. I’m not proud of it but it did happen to me. It took totally about ten years. Once my credit was neutral again, the credit card companies started sending offers for loans and cards again.
    Keep in mind you won’t be able to have a credit card or anything until it’s gone… No hotel rooms, no car rentals, no vehicle loans etc. Its probably better to try to settle your account.

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  6. Lysa Lee Lysa Lee says:

    I have debts in collections from 10yrs ago that I don’t see on my credit report….so maybe it’s true….

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  7. Yes it lasts 6-7 years on your equifax from the last time of contact. Transunion sometimes is longer. The specific companies will still know though

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  8. Melissa Ulm Melissa Ulm says:

    True. I went through a rough patch after getting a lot of credit cards thrown at me at 18. I couldn’t pay it off. The debt was never payed off and eventually all disappeared off my credit report and I am now rebuilding my credit.
    It takes 7 years and you basically have to live under a rock.
    I wouldn’t suggest it!
    If you can settle the accounts you will be better off.

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    • Shawna Rau Shawna Rau says:

      Even if you settle it stays on your credit reports for 7 years. The catcher here is if your debt went to collections in 2010 and you pay it off in 2012 the 7 years starts for 2012 not 2010 as 2012 would be the last activity on the account.

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  9. The debt disappears after you paid it. The 7 years means on your credit file. So if you paid off your debt today. In 7 years it will not show on your credit report. It is up to the company you owe whether or not to write off the debt you owe them. When you said debt, did you mean the debt you owe or the debt you already paid?.

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    • Amanda Jones Amanda Jones says:

      Not if it’s in collections. It will still be on your consumer report for 7 years even though you have paid it

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    • 7 years from the date of last payment

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    • Amanda Jones not true, I paid off my student loan last year and it was off of my credit immediately. Anything over 7 years can sit and wait for you to try to do anything and become active again or it can be written off….depending on the company.

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    • No Allie not accurate..limitation act means just that. 7 years or. Student loans..not sure on who you got it with..if in collections they could of removed the collection item if paid..credit repair..some creditors will do that..an incentive for you to pay..government debts really don’t like reporting..its provincial ones that do..but also wi remove when pay..depends on collection agency as well..i know you are going by your experience. I’ve been in the credit industry for over 21 years.

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  10. As far as I know this only counts if your debt has been sold to a private agency for collections. Anything you owe to your creditors is your responsibility unless you decide to declare bankruptcy. My advice is just use a good payment agency. I just finished a 4 year program with Consolidated Credit. Took 4 years to pay off my consumer debt but they did it for me interest free and they said I can reapply for credit within a few months.

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  11. So how it works…you have a bad debt and goes to collections..most debts are not sold but some are. The date of last payment is what sets it..so if you made your last payment 2012 it will remain on your credit as R9 on your trade line..thats is the rating your bank gives..it will remain as a collection item on your bureau till 2019 ..if is on longer you can inquiry with the bureau and advise them that it’s been over 7 years from your last payment. They will then inquiry with the agency confirmation of date of last payment. Sometimes the agency gets the account a year or two after date of last payment but report the debt the day they get it..which in actuality is not accurate with the limitations act…also an acknowledgment of payment is considered a reset..like if you send something in writing or by email acknowledging the debt and promising to make a payment the creditor can use that

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  12. Betty Gordon Betty Gordon says:

    They are removed if they are paid….sometimes sooner…I have had then removed right after I paI’d for them..but I think it’s 3 yrs for paid debt..7 years for a bankruptcy

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  13. Betty Gordon Betty Gordon says:

    If you pull your credit bearuru it tells you there

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  14. Nicole Maher Nicole Maher says:

    It doesn’t go away. After you pay it, it stays there for 7 years. But here’s an interesting fact I just found out. If I have a car payment, and for 5 years make all the payments till it’s paid off on time, it only counts as good credit for 1 year after you finish paying. Than it disappears from your history and makes it look like you have no good credit. So bad stuff stays for 7 years, but anything good you’re doing to build your credit only stays 1 year. Plus if you pay off everything and have no debt, no credit cards etc, after a year of being debt free you do not get to keep a good credit rating, you end up with no credit at all. Cause it disappears and makes it look like you’ve never had any good credit. It’s a system created to make you fail. You can’t win. So even though I’ve paid off nearly every bit of credit I’ve ever had and don’t use credit cards any more, my credit score sucks.

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    • You are incorrect. I owned rogers $1000 and I refused to pay it, that was 8 years ago now and I pulled my credit report and it’s gone, the only thing that won’t get written off after any amount of time is government debts

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    • She did say it’s up to the company to pull the debt…..shes correct about it all yup

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    • Nicole Maher Nicole Maher says:

      Must have changed. Cause I’ve had stuff on there 10+ years. I do know I’m correct about the 1 year limit for improving your credit though. Basically if you aren’t using credit on a regular basis, you end up with no credit (which is just as bad as bad credit)

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    • Omg…. You need to use a credit card to build credit. Not everyone is smart enough to know the system. That’s why.

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    • Nicole Maher Nicole Maher says:

      Tash R. Gladue umm. I don’t think it’s a matter of being smart enough. No one is taught what the system is, it’s kept quiet, and changes without notice. Being debt free should not be a penalty. The fact that I paid everything off should stay on my report at least as long as the bad stuff. But it doesn’t. It’s a system designed to keep people in debt.

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    • It’s not hard to figure out. Try new ways to improve. Your way obviously isn’t working. But I bet you can get a loan from a bank if you needed another car to finance…. you’ll get the loan since you’re ok in that department. You already have a car.

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    • Your credit number just isn’t fancy as you want it to be but you won’t need a cosigner since you don’t owe anyone money.

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    • If its not removed after 7 years then you can easily apply to have it removed. Ive bought a few vehicles. Paid off years ago. They still showed paid in full on my credit reading…. last check I did was about a month ago.

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    • Nicole Maher Nicole Maher says:

      Tash R. Gladue funny cause just today I was told I need a cosigner, because I don’t owe anyone any money. And I paid off my vehicle 18 months ago. And that it only counted for 12 months. Anyway. Besides the point. I am very aware how building credit works, what I wasn’t aware of like I said, was that the good things about your credit only count towards your credit history for 1 year after its paid off. I had assumed it would be the same 7 years as the bad credit stayed on for. That just makes sense to me. BUT the credit system is designed to keep people in debt. Can’t have credit unless you’re in debt, and it’s become a credit run society, where to do anything you have to have credit cards…ugh.

      Im curious if you are even “smart enough to understand” and if I’ve laid it out simply enough for you, what was actually being discussed. Thanks for the unnecessary unsolicited advice though. Much appreciated. I’m smart enough now not to give in to credit companies who have created a system to keep me in their debt. I like not having another bill at the end of the month. Is it inconvenient once in a while cause of how credit runs everything, yup, but for now it’s a stress free/no debt inconvenience at the end of the tunnel. Perhaps deciding in the future to look at pre paid or debit credit cards to get by in the credit world. But I do not think I will use credit if I don’t need to just to play their game. It’s rigged against us, yet people sign up to play everyday and mostly these same people are losing credit, not gaining in. There again the credit company/bank keeps winning this one sided game they’ve created.

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    • Nicole Maher Nicole Maher says:

      Leah Oliveira you must be lucky than? Idk. I just was told this by a bank today. It wasn’t just my vehicle. Nothing I had paid off over the last 5 years was being used to evaluate my credit score today if it was more than a year old. But the bad stuff was used up till it became 7 years old. I don’t know what else to say as that’s what the bank said. The fact that I hadn’t used credit in over a year gave me a crappy credit score, because all they can see is 7 year old bad stuff.

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    • To each their own.

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    • Im not sure about luck. I just look it every year and even a vehicle I paid off at 20 is still on there. Im 31. As well as a truck That was paid off 2 years ago.
      I cant comment if that goes towards how Im looked at now though. I just know its still there…
      Its only a “x” for you if your getting a ton of places to look up your credit. Its called a credit seeker. Thats why its best to be certain you want something prior to a check.

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    • Coming from somebody who works in finance, I can tell you that that isn’t how it works at all.

      Your good credit doesn’t just disappear after you finish paying it. Your credit score is made up of a system of percentages and ratios. Once you finish paying off a revolving line of credit, like a car, that lines stops being part of the equation, yes, but it still remains on your bureau for a very long time thereafter. This enables lenders to see your credit record and how well you have paid past loans.

      Bad credit, that goes to collections, is sometimes sold off to other collection agencies just prior to the 7 year mark. So it could be 7 years minus a day, and that nasty cellphone bill that you wrote off can go back onto your bureau as a new collections account and start that 7 years over again. Just pay your bills.

      Every time you have your bureau pulled it does not lower your score or put an x on it. If you are a credit shopper and you are constantly having people pull your bureau, then yes, your score will go down. That is one of the ratios that I mentioned earlier. If you are shopping for a new vehicle and you have your credit pulled a few times over the course of a couple of days, it does not affect your score. Especially since lenders can see that you are only having it pulled for a purpose and that this isn’t a weird hobby for you. (There are real people on the other side of that computer screen, analyzing your credit!)

      If you were told that you needed a co-signer for something it likely isn’t because the car loan that you paid off 18 months ago simply disappeared off of your bureau. Because that doesn’t happen. There are A LOT of factors that lenders consider when they’re thinking about lending you money.

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    • Win Chan Win Chan says:

      Desirée Reid Yes that’s pretty accurate. A bad credit score is usually from missing payments and high utilization of credit lines, such as credit cards. The ideal scenario (for credit, anyways) is to use a lot of credit cards but keep paying every credit card bill off so you always carry a 0 balance and build a history, and don’t constantly seek credit over a short period of time, as frequent hard pulls drop your score. Credit card balances are hard on credit because the minimum payment is used against you when you try to get any other credit in calculation of debt-to-income ratios. So say, you owe $10,000 on cards- that approx. $300/month will look like you have $300/month less room for say, a mortgage. You can make money off credit though, say by putting your whole vehicle on a 3.9% loan and investing that cash in a rental condo- where your return is somewhere around 20% (though obviously variable). Or they have something like those 0% interest for 12 months deals on new cards- where then you can use that cash to make money.

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    • What truly angers me is that even if you do have credit, you well never have an ‘excellent’ score if everything is always paid off. You have to carry a bit of debt along with no missed payments. I’ve never had a missed payment for anything and I still don’t have excellent credit because every month I pay my card completely.

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    • Jen Dean Jen Dean says:

      I tried to get credit for something and was told no because I had no credit. That made no sense to me since I had been paying a mortgage for 7 years. I had also recently finished paying off a car loan. I was shocked to find out that they didn’t count the mortgage towards credit. The car loan and something else were both on my credit report, but didn’t count. It was very frustrating. I was told to get a credit card and to make sure I used it.
      It was like being punished for being responsible with my money.

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    • Nicole Maher Nicole Maher says:

      Krista L. Zimmerman exactly.

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    • Nicole Maher Nicole Maher says:

      Jen Dean exactly what I was told as well.

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  15. Nope. It’s not true that it disappears permanently off your record. That shit stays forever somewhere. Someone will find it. You’re not gonna get far if you run from your debt. Collectors will always have it and you won’t be able to get a credit card higher than $500 ( secured visa), and no car loan until you pay it in full or choose to settle. If you settle and don’t pay it in full you’ll have a hard time buying your own house if you ever planned to.

    So, Good luck ever getting a loan… well… Unless you get a co-signer. But who would want to put their credit on the line for an irresponsible little shit?

    I know this because I had to go through it. I paid it after I found all this out. Old telus bill…

    Once you’ve paid it and it still shows up on file that you once had debt It also shows you paid it. … If you ever decide to… your debt just falls on your loved ones once you die. D bag move.

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  16. Candice Ball Candice Ball says:

    7 years from when it’s paid.

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  17. It won/t come back to haunt you and after a discharge from a bankruptcy, usually a year, it/s easy to rebuild your credit, as long as you don/t meet the wrong bitches……………….

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  18. Win Chan Win Chan says:

    Isn’t it 6? Bear in mind no credit sometimes is even worse than bad credit (assuming that is what you’re going for- a fresh start), as people with bad credit but have a record of somewhat paying on time, are “less risky” to lenders than someone with 0 track record.

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  19. It’s 7 years from the date of last collection activity. This means the time starts after the last date it was reported to your credit bureau. If your debt is from 2010 but shopped around between third party collection agencies for a few years, it could take ten plus years to fall off your bureau.

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  20. I had a debt. After my injury, I missed 2 mortgage payments. Not proud of it but I was not awake and when my surgeries were done, I contacted Scotia Bank to pay all owed money plus interest and they refused to talk to me. Within a week, they had served me with court papers for foreclosure.
    The judge gave me 6 months to figure out payment. I had it but now the legal fees were almost $10,000. So applied at another bank to cover existing mortgage plus fees. Paid it off for court within 3 months so now just regular mortgage with the second place that is much easier to deal with.
    I contacted Scotia Bank last year stating that I do not have any debt with them. It was only 3 years but they removed it off my credit. I didn’t want 2 mortgages showing so now just one.

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  21. I was told that you need good credit. Get a credit card (even pre-paid one). Spend $50 then pay off in full before end of month. After several months it shows you have access to credit and you have good payment history. If you have no credit at all, sometimes that works against you. For example if you are going for a credit card or loan for vehicle, home etc

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  22. It’s 7 years for anything sent into collections including third or second parties. Last date would be anytime you’ve answered your phone and admitted you are you. If you have stuff on there for 4-6 years might as well wait two more till it’s off if you pay it it stays on for an addition 7years but it will say paid. Credit checks come off every 2. Equafax and trans union offer a free credit print off every year. I had tones of things from when I was younger after I had my son I straightened out. Nothing new went on and everything from when he was first born is gone! Phew. I pay things on time now religiously lol also credit scores jump often between ten points or so.

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