Announcement

Collapse
No announcement yet.

Credit Bureau and CS payments?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Credit Bureau and CS payments?

    Hi, I have a quick question about credit bureau and CS payments. Do CS obligations show up on my credit bureau? I have a final order which dictates how much I pay per month and my ex opted not to involve the FRO.

    I recently applied for a line of credit and the bank asked me my marital status and then whether or not I paid any support. It seems like it didn't come through on my credit bureau. I make a good salary, pay offset CS and its not that much money.

    The bank is now telling me that my CS obligation may impact my ability to get a low interest line of credit. I don't get it; I have a good salary, good credit rating, no car payments, I own a house with a little equity and I have a little credit card debt that is higher interest. I feel like the bank just doesn't want to give me a lower interest rate.

    If my CS obligation doesn't come up on a credit check, then maybe I shouldn't have mentioned it. In fact, I should have just said that I was living common-law (which I am) instead of stupidly giving up the fact that I am divorced. I feel like I put my foot in my mouth big time.

  • #2
    Originally posted by Teddie View Post
    Hi, I have a quick question about credit bureau and CS payments. Do CS obligations show up on my credit bureau? I have a final order which dictates how much I pay per month and my ex opted not to involve the FRO.

    I recently applied for a line of credit and the bank asked me my marital status and then whether or not I paid any support. It seems like it didn't come through on my credit bureau. I make a good salary, pay offset CS and its not that much money.

    The bank is now telling me that my CS obligation may impact my ability to get a low interest line of credit. I don't get it; I have a good salary, good credit rating, no car payments, I own a house with a little equity and I have a little credit card debt that is higher interest. I feel like the bank just doesn't want to give me a lower interest rate.

    If my CS obligation doesn't come up on a credit check, then maybe I shouldn't have mentioned it. In fact, I should have just said that I was living common-law (which I am) instead of stupidly giving up the fact that I am divorced. I feel like I put my foot in my mouth big time.
    I managed to get a good car loan (zero percent) and had my credit limit increased, despite a fairly onerous CS payment.

    Comment


    • #3
      They really should be asking ALL applicants if they have children - regardless of marital status.

      If you have a child, you have an obligation that may reduce your ability to repay a debt. Can't see the logic in limiting the question to CS (well, I know, CS is less discretionary - i.e. harder to reduce when income decreases, and may be enforced).

      Heck, just being married should be seen as a risk, given what I read on this forum.

      Anyways, the bank said MAY not WILL - it's a meaningless statement from them.

      Comment


      • #4
        Originally posted by dinkyface View Post
        Heck, just being married should be seen as a risk, given what I read on this forum.
        Haha, you are right on this one!!!

        Comment


        • #5
          I don't believe paying c/s impacts your credit rating.

          Paying c/s impacts your income/expense ratios, which is an internal bank determination. They use these ratios to assist in determining risk of the loan. If your expenses are over 40% of your grosse income, it will be hard to get a loan at a reasonable interest rate as you are considered high risk.

          Comment


          • #6
            For some people child or spousal support is higher than their mortgage payment. For that reason I can understand the lender's question. In the event of default or bankruptcy, child and spousal support obligations take priority over everything else.

            However, I agree with HD that debt ratio is usually a deciding factor in determining borrowing terms.

            Comment


            • #7
              Should only be an issue if you are in arrears and FRO have sent your details to the Crdit Bureau. That is one of their enforcement methods.

              Comment


              • #8
                And to note: CS and SS are viewed as a mortgage would. Not just a "payment every month" as would a short term loan. We just went through this with our bank. Hubby makes excellent money but he wasn't able to add very much to our borrowing capacity because he basically has 2 mortgages with his SS and CS.

                Comment

                Our Divorce Forums
                Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.
                Working...
                X