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I’m in kind of a weird situation. I had a cell phone with Koodo when I was in university and, upon getting my free credit report, I realized I had owed $30 on the account for the last 5 years or so.

I paid the balance as soon as I realized I owed money on the account (it had been inactive for years). I hadn’t gotten any notice that I owed money and I’m assuming the bill showed up when I switched carriers and I just missed it somehow.

Anyways, has anyone ever been in a similar situation and gotten the bad credit off of their report?
I understand it is my fault I didn’t pay the bill but I didn’t know it existed and over the 5 years of me not paying it no one contacted me (although my address changed a few times over that period).
 

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I have no real knowledge of these things, but I have always understood that black marks on your report drop off after seven years. I don't think you can have a black mark expunged unless you can show it was wrongly entered. But you can advise the credit reporting agency that the debt has been cleared.

In any event, if in the past 5 years the only blot on the otherwise pristine landscape is that $30 item, I would say it should be of no consequence for anyone evaluating your creditworthiness.
 

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Discussion Starter #3
I have no real knowledge of these things, but I have always understood that black marks on your report drop off after seven years. I don't think you can have a black mark expunged unless you can show it was wrongly entered. But you can advise the credit reporting agency that the debt has been cleared.

In any event, if in the past 5 years the only blot on the otherwise pristine landscape is that $30 item, I would say it should be of no consequence for anyone evaluating your creditworthiness.
Wish this were true but I only got the credit report because I was denied a credit card. It appears they see me as someone who has been skipping out on a $30 payment for 5 years.
My income is good and I have a stable job. The rest of my credit report is fine (no other missed or late payments although I have carried a small balance on a credit card for a short time period - kind of what credit cards are for). Only reason I could see for them denying me is this black mark on my report.
I was planning to buy a house next year but I’m worried this $30 balance will stick with me for the next seven years.
 

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Do you have any other credit facilities? Cards, loans etc.
if not, you need to build up your credit to apply for a mortgage. I would try for a credit card from a non-bank (canadian tire, Walmart, capitol one) Or a secured credit card or an RSP loan.

if you have other established credit....the small cell phone debt shouldn’t stop you from getting a mortgage...be sure to keep proof that it’s been paid....the lender will likely want to see it.
 

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Discussion Starter #5
Do you have any other credit facilities? Cards, loans etc.
if not, you need to build up your credit to apply for a mortgage. I would try for a credit card from a non-bank (canadian tire, Walmart, capitol one) Or a secured credit card or an RSP loan.

if you have other established credit....the small cell phone debt shouldn’t stop you from getting a mortgage...be sure to keep proof that it’s been paid....the lender will likely want to see it.
This makes sense. I do have a credit card from Capital One and have a small student loan still which will be paid off completely in a few more months. I had RRSP matching at a job I was at for a few years and live in a rural area which is why I have a student loan balance still but money to put 20% down on a house - RRSP matching gave me more money than I lost in interest paid on the loan so I only paid $300 a month on the student loan of $10,000.
Never missed a payment on the student loan or credit card.
My credit report shows that the bill has been paid so I’ll keep that as proof it has been paid. Maybe I’ll start using my Credit Card more and see about getting a line of credit (worried that I won’t be approved for a line of credit if I didn’t get approved for a simple cash back card from Tangerine)
 

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Wish this were true but I only got the credit report because I was denied a credit card. It appears they see me as someone who has been skipping out on a $30 payment for 5 years.
My income is good and I have a stable job. The rest of my credit report is fine (no other missed or late payments although I have carried a small balance on a credit card for a short time period - kind of what credit cards are for). Only reason I could see for them denying me is this black mark on my report.
I was planning to buy a house next year but I’m worried this $30 balance will stick with me for the next seven years.
It could be that you have not shown much credit activity over the years and so the $30 negative report does not have much to offset it. If you had 5 years of otherwise paying off multiple credit obligations in consistent timely fashion, I would think the one negative entry would be a non-issue.

I would not be surprised if the credit card issuer who denied you would reconsider if you explained what had occurred, and why, and that it has now been paid. As well, I would not think it should stop you from buying a house. Just tell any mortgage lender up front about the only negative report over many years and how it came about and I would not expect it to be held against you.

Also, I don't think it can run for the next 7 years as you mention. The matter is now 5 years old and I do not believe it stays on your report for 12 years.
 

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Discussion Starter #7
It could be that you have not shown much credit activity over the years and so the $30 negative report does not have much to offset it. If you had 5 years of otherwise paying off multiple credit obligations in consistent timely fashion, I would think the one negative entry would be a non-issue.

I would not be surprised if the credit card issuer who denied you would reconsider if you explained what had occurred, and why, and that it has now been paid. As well, I would not think it should stop you from buying a house. Just tell any mortgage lender up front about the only negative report over many years and how it came about and I would not expect it to be held against you.

Also, I don't think it can run for the next 7 years as you mention. The matter is now 5 years old and I do not believe it stays on your report for 12 years.
The payment was only made a few months ago. Is it from the date payment was made or date the debt started? I thought it was from the date the payment was made.
In true mobile provider fashion it only shows the $17 (looked again and it was only $17 not $30) that I didn’t pay and not the years of payments I did make on time in full.
You are probably correct about the mortgage thing. Seemingly no actual human being would hold this against me - although I acknowledge it is correct and it is my fault I didn’t pay it as I should have called the service provider to make sure I didn’t owe them any after switching carriers.
I guess a lesson here is when you switch providers of anything and let your new provider do all the paperwork for you; make sure you still contact the previous provider to make sure everything went through ok because they probably won’t contact you. In fairness to my old mobile provider I probably didn’t keep my address on file up to date in university so they may have sent me a letter that I didn’t receive.
 

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I think the clock starts to run from the date the scarlet letter is entered on your credit report. But others may know better.

It would seem, otherwise, that if you never make payment, the entry is permanent. I doubt it works that way.
 

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Discussion Starter #9
Ya, they were updating my report every month so the last entry was the month before I paid the bill. So each month since 2015 I’ve had a new missed payment added to my report. Makes me think the last missed payment won’t be removed until late 2026
 

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So you are saying, in effect, that if you never paid the $30, that would be a "missed payment" every month for the rest of your life, so there would be a new "missed payment" recorded on your file every month in perpetuity. Maybe right. Seems unlikely, but I have never found any need at all to think about my credit report.

I have "missed" a few payments in my time. Not innocently, like you, but deliberately when I felt they were not properly due and owing. They probably went on my report. Never paid, so I guess they are still there. But I have never been denied credit and I have availed of a number of different types over the years. In these days when you can get a free score online, I inquired some months ago and it came back "856" which, I gather, is a good score. That's despite my defaults.

And don't worry about buying house next year. All will remain locked down and real estate will be worthless. You'll be able to buy a house for one dollar. Apparently the only things people will pay for will be gold and toilet paper.
20120
20121
 

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Discussion Starter #11
Hahaha. Ya, my rent is $1000 so with the amount I’d pay for a mortgage here and repaying my RRSP I’d be able to get a decent house as an “asset” for the same monthly payment.
On my Equifax report it shows it as a new missed payment every month. I also have a ’drinking in a public park’ ticket from about 12 years ago that I never paid and went to collections after that (I never paid collections either) and it doesn’t show up on my report.
Maybe Koodo mobile are just dicks.
I’m in the interior of BC so housing prices are probably not going to go up or down any time soon (you could get a small house for $85,000).
 

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Collections often appear in a different section of the credit report. Most people focus on the “trade lines” section.

do you see any notations such as R1, R2, I1, I2?.....or any numbers which follow R or I?

also look for a section which shows 30,60,90. That will show how many times you’ve been late 30 days, 60 days, 90.
 

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Discussion Starter #13
Collections often appear in a different section of the credit report. Most people focus on the “trade lines” section.

do you see any notations such as R1, R2, I1, I2?.....or any numbers which follow R or I?

also look for a section which shows 30,60,90. That will show how many times you’ve been late 30 days, 60 days, 90.
My report is really small so I definitely didn’t have any collections claims on it (probably because of how old it was).
I saw the 30, 60, 90 for the cell bill ( the numbers are 2,2,40 respectively). It says that my account was closed in July 2015 and the first missed payment was September 2015 which corresponds with the start of my move to Eastern Canada, thus, I wouldn’t have gotten the bill in the mail at my new address. I wasn’t expecting a bill 2 months after the account was closed and I never thought about the account until I saw it on my credit report from my MasterCard. I got my full credit report after paying it and it says “account closed / rating non-derogatory. IN - Inactive Account”
 

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The negative credit starts will remain on your credit record for 6 years from the date of last payment, so it looks like September 2021.

It may well be that the lender isn't issuing new credit due to COVID right now. I read they aren't issuing credit lines these days.

The banks are also keeping a close eye on HELOC debt, as home prices fall and borrowers are out of work.

I doubt the denial of credit was due to a missed $30 phone bill. More likely COVID related.
 

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Discussion Starter #15
The negative credit starts will remain on your credit record for 6 years from the date of last payment, so it looks like September 2021.

It is unlikely the cell company will remove it, but worth a call. It may also be that the lender isn't issuing new credit due to COVID as well.

I read they aren't issuing credit lines, even to qualified borrowers. There is too much risk at this time for the lenders.
My last payment was in late 2019 when I noticed I owed money on the account. The original payment was due in 2015 a couple months after the account was closed - which is weird - but I didn’t actually pay it until 2019.
My denial letter just said it “could“ be in part due to my credit report so I got my free copy and everything else looked good on the report except the missed phone payments. Maybe it is just a Corona Virus thing.
 

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how did you apply for the card? im not familiar with Tangerines procedures? Online? Phone? In person?

credit card adjudications are first processed through an automated approval system. If there any any blemishes on a bureau, they will usually spit out a ”decline”. if the lender is using a fully automated system, this may be the end of the decisioning And the client is informed it’s a decline. If a human lender gets involved, they can appeal the decision and have a live underwriter look at the application. This may or may not involve getting additional information for the client to justify the appeal.

if you apply with a live person in a branch, you also face the additional hurdle of how much “effort” the advisor wants to put into an appeal. The advisor will use their judgement and make a determination if an appeal is warranted. Even though a small amount, the 2,2,40 lates...I’d agree that getting a card from a major bank might be challenge Unless your portfolio/relationship with them warrants additional consideration.

you should try and find out your credit score. Ideally you’re looking for something above 700.
 

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I’m in kind of a weird situation. I had a cell phone with Koodo when I was in university and, upon getting my free credit report, I realized I had owed $30 on the account for the last 5 years or so.

I paid the balance as soon as I realized I owed money on the account (it had been inactive for years). I hadn’t gotten any notice that I owed money and I’m assuming the bill showed up when I switched carriers and I just missed it somehow.

Anyways, has anyone ever been in a similar situation and gotten the bad credit off of their report?
I understand it is my fault I didn’t pay the bill but I didn’t know it existed and over the 5 years of me not paying it no one contacted me (although my address changed a few times over that period).
I had an identical situation with Koodo as well! Perhaps it's their business practices as I also did not receive a notice. It definitely affected my credit score and it takes time to bring it back to the previous score.
 

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how did you apply for the card? im not familiar with Tangerines procedures? Online? Phone? In person?

credit card adjudications are first processed through an automated approval system. If there any any blemishes on a bureau, they will usually spit out a ”decline”. if the lender is using a fully automated system, this may be the end of the decisioning And the client is informed it’s a decline. If a human lender gets involved, they can appeal the decision and have a live underwriter look at the application. This may or may not involve getting additional information for the client to justify the appeal.

if you apply with a live person in a branch, you also face the additional hurdle of how much “effort” the advisor wants to put into an appeal. The advisor will use their judgement and make a determination if an appeal is warranted. Even though a small amount, the 2,2,40 lates...I’d agree that getting a card from a major bank might be challenge Unless your portfolio/relationship with them warrants additional consideration.

you should try and find out your credit score. Ideally you’re looking for something above 700.
Ya, the late numbers are what concern me the most. I believe my credit score is around 720 (that’s what capital one estimates it as).
Tangerine uses an automated process for credit requests. You just put your info in and it calculates for 60 seconds and then I got denied.
 

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I had an identical situation with Koodo as well! Perhaps it's their business practices as I also did not receive a notice. It definitely affected my credit score and it takes time to bring it back to the previous score.
Ouch! I’m going to try and call them today. I know they won’t remove the record but maybe they can adjust the numbers or remove the latter part of the missed payments. I’m not so sure about this Koodo company; the whole thing is a little sketchy as I’ve heard other companies will remove black marks on your credit in similar situations (at least that’s what a lot of online forums say).
 

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720 is fine for a mortgage. Keep using your other credit card. Recommend not using more than 50% of the limit. Pay it off each month if you can. Good luck in your home search
 
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