How Soon Can You Get a Credit Card After a Consumer Proposal?

A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, you make a proposal to your creditors where you agree to pay back a percentage of what is owed to them or extend the time you have to pay off the debts, or both.

After a consumer proposal, one of the most common questions people ask is, “How soon can I get a credit card after a consumer proposal?” In this article, we will answer this question and provide you with all the information you need to regain your financial freedom.

Understanding Consumer Proposals

A consumer proposal is an alternative to bankruptcy. It is a legal agreement set up by a licensed insolvency trustee between you and your creditors in which you agree to pay a certain percentage of your debts over a specified period of time. This is often less than what you owe and interest-free.

Impact on Credit

After completing a consumer proposal, your credit rating will be rated R7. This rating indicates that you have been making regular payments through a special arrangement to settle your debts. This rating stays on your credit report for three years after your proposal has been paid in full.

Getting a Credit Card After a Consumer Proposal

You can apply for a credit card after your consumer proposal has been completed. However, getting approved may be challenging as lenders may see you as a high-risk borrower due to your previous financial issues.

Types of Credit Cards Available

There are two types of credit cards you may be able to get after a consumer proposal:

  1. Secured credit cards: These require a deposit which becomes your credit limit. They are easier to get approved because the credit card company has your deposit as a guarantee.
  2. Unsecured credit cards: These do not require a deposit but are harder to get approved for after a consumer proposal.

Steps to Take After Getting a Credit Card

Once you get a credit card, use it wisely to rebuild your credit. This includes making payments on time, keeping your balance low, and not applying for too much new credit at once.

Improving Your Credit Score

Improving your credit score after a consumer proposal takes time, but it is possible. Here are some tips:

  1. Pay all your bills on time;
  2. Use your credit card responsibly;
  3. Keep your credit card balances low;
  4. Don’t apply for too much new credit at once.

Additional Resources

For additional resources, consider reaching out to a licensed insolvency trustee. They can provide advice on managing your finances and rebuilding your credit after a consumer proposal.


Getting a credit card after a consumer proposal is possible, but it requires careful planning and responsible credit use. By following the steps outlined in this article, you can work towards rebuilding your credit and achieving financial stability.

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