Rebuilding Credit After Bankruptcy or a Proposal.

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.

After you have been discharged from bankruptcy or completed your proposal, you may be a good credit risk, since you have no debt. Naturally, you will find it a little harder to get credit until you can re-establish a good credit rating.

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.

Tips on Rebuilding your Credit Rating:

When a person declares bankruptcy the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit bureau report for 6 years after the date of your discharge. A proposal stays on your credit bureau report for 3 years after your proposal was completed. 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;
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. You are virtually guaranteed that you will receive a secured credit card from Horizon Plus.
Pay your credit card balances on time.