Credit After Bankruptcy or a Proposal

You can get credit again after a bankruptcy or a proposal. The bankruptcy and proposal laws of Canada are intended to give you a fresh financial start. The ability to rebuild credit is part of that new start.

Although bankruptcy will stay on your credit report for 6 years after your discharge and a proposal for 3 years after the proposal is satisfied, there are many things you can do to start building a good credit rating. Two of the most important things you can do are to borrow money responsibly and make your payments on time.

We have listed a number of lenders and brokers who will give serious consideration to your loan application, knowing you have completed bankruptcy or a proposal. These agencies may be able to help you re-establish your credit and get you back on your feet.

You can start to re-establish your credit by doing the following:

Talk to your banker and say you want to re-establish your credit rating;

Open a savings account;
Be a regular and persistent saver. Use the common techniques I am sure you have heard of:
1. Pay yourself first;
2. Take your next raise and save it;
3. Save 5 % of your pay;
4. Have your savings come right off your pay and into a separate savings account;

Take out a small loan using the savings account as collateral, and then pay it back;
Apply for a secured credit card. Using a secured credit card is a quick way to rebuild your credit rating. For example, Horizon Plus reports your payment history to the credit bureaus each month. As you make regular payments your credit history looks better and better;
Pay your credit card balances on time.

Credit Bureau Tip

The consumer has a right to place a 100 word statement (50 recommended) on the credit bureau file, to be given to anyone who obtains a future report.

Credit After Bankruptcy or a Proposal

Credit Bureau Tip

The following lenders and brokers will give serious consideration to your loan application, knowing you have completed bankruptcy or a proposal: