Question


cloudrae

Debt in canada and bad credit?

i have debts on my credit cards...i have a visa and a mastercard...i lost my job and couldnt pay for them...anyways...they have both gone to collection agencies and now im wondering 1) Can i get another Credit Card? (i have a good paying job now thats very steady) 2)how can i bring up my credit rating? cuz its probably really low and 3)is this going to affect me if i go to buy a car? i want to buy a used car but im afraid my credit will deny me the request. this is Strictly a question for Canadians who have been in this situation or know about it. thanks

2 years ago - 1 answers

Best Answer

Chosen by Asker

As soon as the Visa and MasterCard went to collection, your credit score took a big hit. I doubt if you will be able to get another card right now. You can get a "secured" Visa from Home Trust and use that until you clean up the collections. 2-The only way to bring your score back up is to pay off the collections. 3-If you decide to buy a car this will adversely affect your ability to finance it. Companies like Wells Fargo or Citi Financial will probably finance you but their interest rates are horrendous (30%). With an adequate down payment or trade-in, GMAC or Ford Credit might take a chance but the banks will back off. Now here's the kicker......you would have no problem getting a mortgage to buy a house from any bank....and at prime rates too.

Source(s)

23 years in lending with TD Canada Trust

by Jack

2 years ago

Asker's Rating: 

Other Answers

Contacting a credit law firm is the best thing you can do. They'll provide you free advice before you decide to continue with them. I'd recommend Lexington Law which has helped many people with credit problems dispute and remove an unlimited number of items on their credit reports.

by Cathy V- 2 years ago

Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at www ...

by harish- 2 years ago