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Rebuilding Credit After A Bankruptcy

Many debtors believe that they will never be able to repair their credit rating after having filed a Bankruptcy or Consumer Proposal. This could not be further from the truth.

In fact, normally a Bankruptcy will allow you to clear your credit faster than the alternative, because all of your pre-bankruptcy debt has been eliminated in the Bankruptcy.

The following are some simple steps you can take to repair your credit rating:

  • Pay your bills on time – Ensure that all of your bills are paid by the due date. While it is always better to pay the balance in full, if this is not possible then make sure the monthly minimum payments are made.
  • Do not exceed the credit limit set on your credit card.
  • Obtain a secured credit card. A secured credit card is a credit card where you have given collateral to cover the balance outstanding on the card. There are many items which could be considered collateral including a deposit or a GIC. Use the credit card and ensure that you pay the balance off in full each month.

Remember: There is no better way to improve your credit than to prove that you are now responsible with credit by making regular payments. After a period of time, your credit history will reflect regular use and repayment of credit.

You will then be well on your way to a perfect credit score.

Summarizing: sometimes a Consumer Proposal or even a Bankruptcy can be a better solution to improve a credit score over a few years. One of our Debt Relief Professionals can inform you about all your possibilities in a free, no-obligation debt consultation.