An Ontario man, who says
he always pays his bills on time, was shocked to learn that an old credit card
bill for less than a dollar ruined his credit rating.
Woodbridge resident Gabriel Frano
said when he checked his credit rating about a year ago it was in the “very
good range.”
“I've always known when I got it
checked it was 750 and up," Frano told CTV News Toronto.
Credit scores range between 300 and
900 and a higher number means less risk for lenders.
Frano, who decided to apply to get
preapproved to buy a condo, said he was surprised when he was turned down
because his credit score dropped more than 160 points.
“My credit score dropped from 750 to
586, which is like the lowest five per cent of Canadians,” he said.
Frano called Equifax and TransUnion
to try to find out what was wrong with his credit file and that’s when he
discovered a credit card he thought he had closed down still had a balance of
95 cents.
“It’s just for 95 cents. Because of
that 95 cents I can’t get preapproved for a mortgage. I can’t even get approved
for a $1,000 increase on my credit card,” Frano said.
Frano said in 2017 and 2018 he
travelled overseas to Europe and that’s when he took out a credit card with
Home Trust because it was a card with no foreign currency conversion
surcharges.
He said when he closed the account
last March he thought his balance was paid in full.
“Even if it's paid at this point
it's still going to affect me because it says I have delinquent payments on my
credit file,” Frano said.
Frano has now paid the 95 cents but
wants the charges removed from his file because it can remain on his credit
history for the next six years.
“I've called Equifax and TransUnion,
they can't even talk to me about my credit score that they determine. I’ve
talked to Home Trust over the past month and they say there is nothing they can
do," Frano said.
CTV News Toronto reached out to
Equifax, TransUnion and Home Trust. All three said they couldn’t discuss
details of Frano’s case due to privacy reasons, however they agreed to review
his situation.
Frano said after an investigation
they agreed to remove the 95 cent delinquent charges from his credit file and
his credit score has been re-instated, meaning he can now be approved for a
mortgage.
If you believe there are mistakes on
your credit file there is a dispute process. You can find the information on
the Equifax and TransUnion websites.