Once an account is paid or settled with a financial institution or credit card company; how long by law can they keep my personal information on their system?

Re: Trans Union Credit Report

I reside in the province of Nova Scotia. I need someone like you with experience if you have time out of your busy schedule to help me out. I am in the process of buying a home but before I do I want to make sure my credit file is up to date. I have few questions that you might be able to answer. I have a Moore’s account that is closed with an R1 rating. The date of last payment was on July/2005.The high credit showing is $877, credit limit showing $3500 and zero for a monthly term. Is the high credit, credit limit or both affecting my credit score? I also have ten accounts that are showing paid or closed with an R1 rating that are over six years old that are showing a high credit amount, zero credit limit and zero monthly term. Is the high credit on these accounts affecting my credit score? I requested to have these accounts removed and my requests keep getting ignored. Why is Tran’s Union allowed to keep accounts that are positive, closed and over six years on my credit file for twenty years?

Thanking in advance for your assistance and consideration in this matter.

Yours truly,

Jeff Brigley

1) Pay your bills on time
2) Don’t max out your current credit cards
3) Don’t have several cards( even if you use/ dont use them)
4) Pull a free credit report every year. Make sure it’s accurate and challenge if it is not.

Also if you have to call 900 # fort credit repair it most likely a scam. Credit repair can & should be done by yourself ( unless it’s a legal issue)

I worked for RBC in personal lending for over 6 years. I have a ton of experience with credit reports so here we go:

Melissa, just about everything can sit on your bureau for up to 7 years before it “falls off”. However, lenders tend to be more concerned with what you’ve been up to for the most recent two years. As long as those older bad debts are CLEARED. That means that you need to have paid off or otherwise dealt with your past mistakes. For example, if you defaulted on that first credit card you got when you turned 18 and you never bothered to pay off (or declared bankruptcy) then it will keep showing up every month for 7 years as an R9.

Gail is 100% correct with regard to bankruptcy vs. consumer proposal. CP’s are a bad idea. You may think that logically, if you work to pay back all your debts eventually that it looks better than a bankruptcy. Wrong. The thing about CP is that they basically consolidate your debt and then you pay it back over several years. Any lender WILL NOT touch you with a 10 foot pole while you are still paying back a CP. Not only that, but it will probably take another two years after the CP is cleared that a lender will take a chance on you. And guess what? Making all your payments on your CP on time doesn’t rebuild your credit at all (I’ve had that argument with a client more than once). A bankruptcy takes several months but once it’s clear, it’s clear. Again, a lender won’t touch you for a MINIMUM of 2 years after your bankruptcy is DISCHARGED (not the date you filed, but the date you’re clear).

I don’t know how many times I can say this, but the #1 way to prove you’re worthy of credit again is SAVING, SAVINGS, AND SAVINGS. Start an RSP with a regular monthly contribution. Why an RSP? Because it’s long-term, and a lender likes to see that you are thinking long term in your financial plans. Not only that, but it’s not easy to just liquidate in a moment’s notice. Also, it’s a back-up plan in case you run into financial trouble again. Lenders like to see you have something in your back pocket in case of emergency (and no, an overdraft is not an emergency fund).

Then, go get a secured credit card – you put down a deposit of say, $200, and then they give you a card with a limit of $200. Manage it properly for long enough and they give you back the deposit.

So, if you’ve done those things then your old creditors should have stopped chasing you, you’ve started savings, and you’re building new credit experience with your secured credit card. Do that for a few years and you’ll have a shot at getting a loan again. It’s going to take time and a lot of baby steps to get your credit back.

And a note to Diana about canceling those old cards: Don’t worry about your credit score. In my credit decisions, if a person had say, 10 credit cards all at $0 I was leery about granting them anything more. It raises flags to me because the question I have is “why do you have all these cards?” Sometimes having all that available credit can spook a lender regardless of your credit score. Not only that, but credit score is only one part of a credit application. If you have a perfect credit score, but you have no assets or savings, weak employment stability, and a high debt ratio, then you’ll be refused.

ALSO, having extra credit cards around that you don’t use at all makes you more vulnerable to identify theft and fraud. If you don’t use the cards, chances are you don’t pay attention to them, or who might have gotten ahold of the information from those accounts. If you don’t use them and have no intention of ever using them, then cancel the cards.

Other reasons that applicant’s are declined, is debt ratio. A customer can have amazing credit, but if they have already extended themselves to 40% of their gross income in debt pymts including housing, they may not qualify for more.
Another reason can be that a client already has the maximum unsecured credit we will offer based on their income. It can be a real challenge to explain this to clients. You can have amazing credit history, but if your income is low, it is limitating.

Hope that helps!