Rebuild Credit in Canada Following Bankruptcy or a Debt Proposal

How to Rebuild Credit Following a Bankruptcy / Debt Proposal

If you experienced some financial struggles, chances are you have less than optimal credit.

Poor credit leads to a wide range of challenges – particularly in terms of getting a loan.

Generally, a new creditor will check with the credit bureau and look into your past track record with borrowing and repayment.

If you have slipped up in the past, they reserve the right to prevent you from getting a good rate on a loan – or a loan at all.

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What is Good Credit?

Basically, a good profile highlights a diverse set of creditors who have provided you with loans over the course of the past few years.

It shows that you consistently pay your full amounts on time.

Generally, good reports show that you plan for the future by taking out credit to add to retirement savings.

Essentially, a good credit profile represents a trustworthy individual who consistently pays what they owe.

What is Bad Credit?

Conversely, poor credit reflects someone with a subpar lending history.

It shows that you took out loans and, during the course of repayment, defaulted several times.

A poor credit report generally reflects multiple loans and cards, all maxed out.

Typical of those with poor credit is short term lending, bankruptcies or the filing of consumer proposals.

It showcases a credit profile of someone who is not responsible financially.

Insufficient Credit History 

Different than both good and bad credit, insufficient credit is when you have no history at all.

Perhaps all of your accounts are under your spouse’s name or you simply never took out a credit card.

While many think this is a good way to stay out of debt, it also bars you from getting any type of credit history – another thing that can also stop you from getting a loan or line of credit.

To mitigate bad (or nonexistent credit), you should:


  • Make all payments on time;
  • Avoid bankruptcy;
  • Try a secured credit card;
  • Attempt to remove bad history.


To learn more about how to improve your credit, speak to a licensed credit counsellor.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal

One Response to “ Rebuild Credit in Canada”

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