Are you unsure how to rebuild your credit after making a Consumer Proposal, or filing a personal bankruptcy?
Or are you considering working with a Licensed Insolvency Trustee to sort out your debts but are worried you won’t be able to re-establish your credit rating?
Rebuilding your credit is easier than you think!
Even after a Consumer Proposal or personal bankruptcy you can get a new or renewed mortgage, vehicle financing, credit cards and loans. In as little as 2-3 years, you may have a better credit rating than when you started!
Watch our short video below to learn more about how to rebuild your credit after filing a Consumer Proposal or personal bankruptcy.
Follow “The SANDS Plan”
Set the Stage: Fulfill the terms of your debt settlement under your Consumer Proposal to obtain a Certificate of Full Performance; or in a bankruptcy perform the duties required to obtain a Certificate of Discharge. These reflect an “exit” from these processes, and fully absolve you of the eligible debts – you are now debt-free!
Ensure Accuracy: It’s common to find multiple errors on your credit report, which can damage your credit rating. Visit our Downloads section to access forms for credit history requests, and investigation requests to correct errors. You are entitled to receive your full credit report via mail, at no charge to you, once per year. Please note that checking your credit in this manner will not impact your credit score at all!
Get New Credit: A simple way to get new credit is to obtain a secured credit card with a low limit. Demonstrate responsible use of this card by paying off the balance in full prior to each due date. Making all payments on time and gradually increasing the credit limit can boost your credit rating quickly.
Be a Dependable Customer: All bills must be paid on time, every time, with no exceptions. Even a missed cellphone bill can have a negative credit rating impact.
Spend Less than you Earn: A key factor in demonstrating good credit worthiness it to spend less than your income. Keeping balances lower than 50% of the credit limit is optimal.
Tools, tips, and other resources for rebuilding credit, spending habits and savings strategies are provided as part of the Consumer Proposal and personal bankruptcy processes.
Which debt relief option is right for you?
View a comparison explaining some key differences between Consumer Proposals and personal bankruptcy here.
With 16 offices across BC, we offer debt-free plans to help you find peace of mind. In less than an hour we can assess your financial situation and give you a plan to be debt free. Book your free consultation today with one of BC's Trustees in Bankruptcy and Debt Consolidation.