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.
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 (See Menu at the top) 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.
As always, when you borrow, it is your responsibility to check out the cost of borrowing and terms and to carefully read and understand the loan agreement. It is up to you to ensure you are getting the best rate possible and that you can afford the payments and that you can live with the contact terms. For some tips please refer to: Plan carefully before you borrow.
Plan carefully before you borrow.
• Check your budget Figure out how much you can afford pay for the loan. Download a free excel spreadsheet on personal budgeting.
• Find out exactly how much the payments on the new loan will be . The lender will be able to tell you the exact amount of the payments. Don't borrow without knowing what commitment you're making.
• Don't forget to leave a cushion —some of your income has to be budgeted for savings and emergencies. If this new loan payment means you're spending all of your monthly income, then, you can't afford the loan.
