One year after CP discharge. Credit score: 541. Opinions? Advice?

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New Beginning

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Hi, guys. I have been discharged from a 5 year CP for 1 year now and my credit score is 541 (according to Equifax, haven't checked Transunion yet).
I applied for, and received a Walmart Mastercard before the CP went through the system, which was in August, 2011. I know that sounds contradictory as the CP was signed that month, yet I was discharged 2 months earlier than I expected (June, 2016).
Then, in May, 2012, I got a Capital One guaranteed Mastercard. For both of these, I used them regularly and always paid well ahead of payment due date, and received regular annual limit increases without once requesting it. So, I thought I would get a good head start on rebuilding my credit score, and would come out of the proposal with a decent score. Boy, was I wrong. If it is 541 a year after discharge, it must have been pathetic before then! Those 2 Mastercards are the only accounts on my file. I owe nothing else; no car loan, no mortgage, no personal loans.
So, I wanted to know if a score of 541 a year after discharge sounds about right to you guys? Any opinions or advice would be greatly appreciated. Thanks!

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pinababe

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Re: One year after CP discharge. Credit score: 541. Opinions? Advice?
« Reply #1 on: July 19, 2017, 01:12:17 PM »
Long story short, your credit rating is going to remain poor until the accounts involved in your CP are purged from your file.  I left my CP with a rating around 560, so I don't think 541 is bad.

Now if you want to try and get your rating up over the next few months and years before that purge happens, there are a couple things you can do. First off don't carry a balance on your credit cards every month, and when you do make sure the balance is no higher than about 20% available credit based on the cards limit.  Credit bureaus devise your ratings based on balances as well as paying on time.  I would recommend a rotating balance/no balance approach.  What I mean by this is one month you carry a balance (which you pay in full by the due date) and then next month you pay the card in full before the statement date so it reports to the bureaus with a zero balance.  That will help the bureaus establish your ability to pay off credit. Also Walmart and Capital One cards aren't considered 'big' cards by the bureaus which means they don't weight as heavily in your credit rating as cards from the major banks do.

Although having a small amount of credit might sound good, your good credit footprint is actually very small since you don't have a mortgage or car loan.  Look at it this way, say I have 2 credit cards in good standing versus 8 accounts that were involved in my CP, that means 75% of my credit footprint is considered bad credit.  You might want to consider trying to get another card or perhaps a small loan (but be warned no major bank will likely offer you anything, but credit unions might albeit with a higher interest rate) to increase the amount of good credit on your file.

The honest truth is that your credit rating will remain low until your CP records are gone. 

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Wetcoaster2

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Re: One year after CP discharge. Credit score: 541. Opinions? Advice?
« Reply #2 on: July 19, 2017, 03:33:48 PM »
Have you checked to see if all the information is correct with Equifax and Transunion?

We paid our CP in January after 5 months and I am still trying to get errors corrected in both reports.  it is a real pain in the ass getting things right.
Equifax you have to do it thru fax or mail and Transunion you can phone or mail.

My Equifax score was 561 at the end of May.  After getting most of the errors fixed it jumped to 80 points and is now 641.

Transunion score was 523 and after corrections is 567.

Big difference between the 2.


We do have a mortgage,car loan that we kept during the CP.
I also have a Telus bill that gets reported.
I also have a People's Trust Secured M/C I I got a few months after we filed the proposal.





I was told during our counseling sessions  to use between 5-10% each month and pay it off when the bill comes.
Then once a year use it 1 month for 50-60% and pay it off when that bill comes.









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New Beginning

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Re: One year after CP discharge. Credit score: 541. Opinions? Advice?
« Reply #3 on: July 20, 2017, 02:54:22 AM »
Well, this is crazy! So, as I mentioned, my Equifax score is 541 (as per Borrowell, didn't mention that). Then, tonight, I signed up with Credit Karma to check my Transunion score. Guess what it was? 827! Really! I also phoned Transunion earlier in the day to see if my info was accurate and the guy gave me a complete rundown of my credit report. Then I compared it to the report that Credit Karma provided and there were discrepancies. It got me to thinking these free credit score providers are nothing more than a load of crap for there to be such a huge gap. I guess I'll have to spend a few bucks to see what my credit scores with TU and EQ really are.

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New Beginning

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Re: One year after CP discharge. Credit score: 541. Opinions? Advice?
« Reply #4 on: July 25, 2017, 08:37:06 PM »
No wonder my EQ score is so low! I received a hard copy report from them today, and CIBC and RBC (the only 2 creditors on my consumer proposal) last reported to them May, 2017 That I still owe them $5700.00 and $520.00, respectively, even though I was discharged June, 2016! WTF??! I guess now I'll have to send EQ a copy of my discharge letter along with the dispute form. Is there anything else I should dig up and send along with it?

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fireguy233

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Re: One year after CP discharge. Credit score: 541. Opinions? Advice?
« Reply #5 on: October 28, 2017, 01:57:00 AM »
It also wouldn't hurt to contact those tow institutions to ensure they are correctly reporting on your credit file.

I had to do this with TD a couple of times before they corrected it.

One year out from completing my proposal I have a cc with Can Tire for 4500 a Cap One for 3000 a vehicle loan a personal loan for 5000 and my Phone provider reporting to the Bureau. my Transunion score is 673 and my Equifax is showing 603. That's with an erroneous collection still on my file.

So get those errors fixed and you should see a decent bump. But like others say your credit file is small. you need a larger credit footprint.

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M.maloy03081983

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