A financial mishap can become an opportunity to rethink the management of your personal finances and get off to a good start. Follow our financial recovery advice to rebuild your credit and give yourself a second start.
Upgrade your credit score faster
According to popular belief, you have to wait 7 years before you can borrow again after bankruptcy or a consumer proposal. Did you know that this deadline can be shortened if you take the right actions? There are solutions to rebuild your reputation and rebuild your credit faster. It is important to act since life goes on and you can give yourself back the means to carry out projects.
First steps
- Make a budget and stick to it.
- Determine the causes of your debt to avoid falling into the same traps.
- Apply for milestone credit card with a security deposit (maximum limit of $ 1,000).
Apply for a loan to create savings
In order to regain the confidence of lenders, apply for a loan from a financial institution that you can repay within a relatively short period of time, less than 3 years. Then offer the lending institution the option of keeping the money in a guaranteed investment certificate (GIC). Thus, when you have repaid your loan, the amount of your GIC will become accessible and you can use it to carry out new projects, such as the purchase of a car, a house, a trip or a RRSP. In addition, you will have demonstrated your ability to manage credit well, which will help improve your rating.
Show your stability
- Stay at the same address as much as possible.
- Have a stable job.
Check your credit report right away
It is very important to order your credit report from Equifax or TransUnion credit bureaus to verify its contents. If any information that has become inaccurate or other errors are found there, it could affect your rating. By cleaning up your file and requesting the necessary changes from Equifax or TransUnion, you may improve your score. To check your credit report, visit equifax.com or transunion.com.