# My credit score wrecked over $5.



## pedant (Apr 25, 2011)

Here's the story: I checked my credit score today (first time in a year), and see my score has sunk to 681. I pay absolutely everything in time, so I was very surprised. I go through the details and find that Manitoba Student Aid says I owe them $5, and the I have 4 payments >90 days; and the account is >120 days past due. 

I investigated a bit. They had been debiting my account monthly, but in January of 2014 I phoned to get my balance and sent them a cheque. The lady on the phone said there may still be a small debit from my account in February to offset interest between the time I wrote the cheque and its clearing. I didn't notice there wasn't a debit, and MB Student Aid never sent me notification of an additional amount outstanding. 

So now I don't know what to do. This is quite a hit on my credit score over a paltry amount that I would have been most happy to pay off--or have them debit from me!

Any suggestions? If I talk to MB Student Aid, is there any chance this could be removed from my credit report? This is so upsetting!


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## sags (May 15, 2010)

You can download the form to rectify information available online at the credit agency's website, explaining the situation..........or.......

The better solution is to contact the lender.........in this case Manitoba Student Aid........and request they contact the credit agency.

In either case.......the lender would be contacted and have to supply updated information. The credit agency won't take your word for it.

I would deal directly with the lender............to move things along as quickly as possible.

Your credit report should show improvement in a couple of months.


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## Pluto (Sep 12, 2013)

sags said:


> You can download the form to rectify information available online at the credit agency's website, explaining the situation..........or.......
> 
> The better solution is to contact the lender.........in this case Manitoba Student Aid........and request they contact the credit agency.
> 
> ...


Go to the credit Bureau and tell them your story in person. Be polite and and explain they didn't send you a bill for the 5 dollars, and didn't debit your account. The odds are they will remove it from your record.


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## marina628 (Dec 14, 2010)

IMO most people getting approved for $500,000 mortgages these days would love to have a 681 credit score.I would not sweat about it much even if you are looking to buy house ,car and boat all in same week as the banks seem to approve anyone over 650 these days.IMO damage already done and practically impossible to get anything deleted from the credit unless it is a case of fraud.BTW speak from experience here had a issue back in 2006 for very small amount of money and nothing worked for me.


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## gardner (Feb 13, 2014)

I don't mean any disrespect to the OP, but I am a bit perplexed about why folks would worry about their credit score. Personally, I view a good credit score as a bit of a risk, since it widens the scope of a possible credit fraud against me. I have no interest in borrowing money, and if I did, it would be from a bank that knows me well and would likely look at my credit score as a formality rather than as a primary source.


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## sags (May 15, 2010)

Renting an apartment........employment in some industries.......are a couple of things that require a good credit rating.


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## Mortgage u/w (Feb 6, 2014)

As a mortgage lender myself, I can tell you that a beacon score of 681 is still considered very good. However, I understand your concern......if you beacon was over 800, I would be upset as well to see such a drop.

That being said, you can definately have all this rectified. The one that will do it is the lender in question. Ask that they rectifiy your debt and demand that they issue a letter to Equifax and/or Transunion for the correction. The agency will definately erase the default and credit score will be restored. 

Worst case, if they do not remove the default, ensure the debt is paid and closed. Once it is reported as such, your credit score will climb again within 30 days.


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## Lypheus (Sep 24, 2014)

I feel your pain - going through something similar myself. Wife and I decided we'd like to move and we've always had a good credit rating - went to get approval thinking nothing of it and my rating was around ~624, just horrid. Instead of paying extra interest we are fixing things, the culprit? Turns out a few years back on the way home from a trip to BC (family), we got a speeding ticket - never received anything in the mail, a call or notice, it just sat there eroding our credit rating until we noticed when looking to refinance our mortgage ... ugh ... anyhow, a month later and we're back up to 666 - should be back in 7's soon here I'm hoping - guess that shows you should check your CR once a year even if not using it to ensure nothing fell through the cracks .


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## OhGreatGuru (May 24, 2009)

By all means complain to Manitoba Student Aid. If it happened to you it's probably happening to others. This is what happens when an organization lets computers take over decision-making. If a real person had handled the file, they would have asked "Why are we reporting someone to a credit agency for $5? In fact, why are we still trying to collect on it? It costs us more money in process than $5!"

A good computerized collection system would screen for the amount owing and spit the file out to a real person to follow up on why minor amounts haven't been settled. Unless you complain, they won't fix the root problem. If they won't do anything, ask them how many person-hours they think it will cost them after you complain to the Minister of Education.


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## pedant (Apr 25, 2011)

Thanks all. I contacted MSA, and it actually incredibly easy to clear up (apparently they thought they'd written off the $5, but somehow that wasn't processed). In any case, they were very responsive, and contacted Equifax right away to clear things up. Score is back to >760. 

Gardner - I'm worried about my credit score because I will likely be undergoing some transitions in the next year that will require credit checks - applying for a rental, possibly buying a new [to me] car, changing mobile providers, etc. Plus, I think it's not a bad idea to have a good credit score, just in case. I'm not yet at a point in life where I've been able to build much of a safety net.


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## Westerncanada (Nov 11, 2013)

pedant said:


> Thanks all. I contacted MSA, and it actually incredibly easy to clear up (apparently they thought they'd written off the $5, but somehow that wasn't processed). In any case, they were very responsive, and contacted Equifax right away to clear things up. Score is back to >760.
> 
> Gardner - I'm worried about my credit score because I will likely be undergoing some transitions in the next year that will require credit checks - applying for a rental, possibly buying a new [to me] car, changing mobile providers, etc. Plus, I think it's not a bad idea to have a good credit score, just in case. I'm not yet at a point in life where I've been able to build much of a safety net.



Let us know how this is impacted your score (After the fix). I have been on my credit report a ton lately and it's very interesting how sharp it rises/drops with credit utilization each month. 


Single biggest factor *for me anyway) is the amount of my actual credit card balance on the statement each month.. if my utilization is under 30% I get a 6-15 point growth.. if its over, opposite affect. 

I have never had an overdue payment and always pay my card off in full but the reality is Equifax/Transuinion obtain your statement balance not your monthly balance resulting in a negative impact even if you pay your card off on time


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## pedant (Apr 25, 2011)

Westerncanada said:


> Let us know how this is impacted your score (After the fix). I have been on my credit report a ton lately and it's very interesting how sharp it rises/drops with credit utilization each month.
> 
> 
> Single biggest factor *for me anyway) is the amount of my actual credit card balance on the statement each month.. if my utilization is under 30% I get a 6-15 point growth.. if its over, opposite affect.
> ...


So with all other variables held equal, the fix changed my score from 681 to 770. Now the list of things negatively impacting my score are number of accounts (8), most recent telco inquiry (which was two years ago), and number of inquiries in last 12 months (2). I'm not concerned about any of these, but it is kind of interesting, isn't it?


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## Westerncanada (Nov 11, 2013)

pedant said:


> So with all other variables held equal, the fix changed my score from 681 to 770. Now the list of things negatively impacting my score are number of accounts (8), most recent telco inquiry (which was two years ago), and number of inquiries in last 12 months (2). I'm not concerned about any of these, but it is kind of interesting, isn't it?




It really is.. strange to me how these minor jumps can be considered for credit score when the reality is the lender who is lower risk would have higher income or atleast cash flow, assets and stability (none of which are accounted for on the credit score). 

I feel like they should have bank accounts included and the number of liquid cash as part of the calculation vs nailing someone 80 points over a $5 phone bill. 

I had a bad experience with Telus as well when i moved and kept TV but not my mobile and they never sent me any letter and assuming my account was paid in full (i had direct withdraw) i never found out about it until a collections agent called over $176 phone bill.. which despite i paid immediately I have a 7 year black mark on my credit.


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## Oldroe (Sep 18, 2009)

Gardner with a bad credit score even your bank will refuse you they have no choice. You will have no clout to negotiate a better rate or fees. 

Sticking head in sand is just having your head in sand.


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## sags (May 15, 2010)

A near perfect credit score, is accompanied by a long history of debt repayment, often comprising robbing Peter to pay Paul, and walking the fine line between solvency and bankruptcy.

Max out multiple credit cards........borrow from HELOC...........re-mortgage home..........repeat cycle for years..............voila..........near perfect credit score.

Credit scores are designed to accommodate lenders. They rate the best prospects for borrowing money on a continuous basis........but never defaulting. Those are the most sought after clients by lenders.

The lenders actually like it when a payment is late. As long as it isn't 30 days late, it doesn't get reported to the credit agency.

It says right on the credit reports........"payments 30 days or more late"...........as the first category.

They get to charge hefty late fees.............

A consumer who is happy to pay high interest and late fees forever is a gold mine for lenders.

Consumers who use their credit cards, gain the rewards,..... and pay off the balance immediately are considered "deadbeats".


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