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How do I rebuild my credit?

After a Consumer Proposal

Once you have completed your consumer proposal and received your Certificate of Full Performance, your credit report will be updated and a notation will remain on your report for three years.

After a Bankruptcy

Once you have received your Certificate of Discharge from bankruptcy, your credit report will be updated and a notation will remain on your report for six years in the case of a first bankruptcy.

What is the first step?

The first step is to obtain a copy of your credit report to ensure that the consumer proposal or bankruptcy information is accurate, and that the full performance or discharge is noted.

In order to rebuild your credit rating going forward, you will need to borrow money and pay it back. Applying for a secured credit card is a good first step. With a secured credit card, credit is extended after you give a security deposit to the financial institution. It is important to use the card and pay the balance each month. If your future goals include purchasing a home, you must keep your record clean after completing your bankruptcy or consumer proposal. After using the secured credit card for a few months, you can ask for the security deposit back.

Once you have used the secured credit card comfortably for a few months, you can then consider a second type of borrowing, such as an RRSP loan, financing a vehicle or applying for a small line of credit.

To maximize credit rebuilding, we recommend that you have two credit facilities that are paid on time and in full each month.

Remember that you are borrowing for the purpose of rebuilding your credit; do not to get into a financial crisis again.

We recommend that you speak to a Licensed Insolvency Trustee to find out more about rebuilding your credit after completing a consumer proposal or bankruptcy.

Credit Rebuilding Resources

We all know how crucial credit is for our financial future, therefore it is important you know just what your credit score is so there are no surprises. Become an expert of your own credit situation using the credit report request forms below for both Equifax and TransUnion:

Trans Union Credit Report Request Form

Equifax Credit Report Request Form

Smythe Credit Rebuilding Information Sheet


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