How Do I Rebuild My Credit After Filing Bankruptcy or Making a Proposal in Calgary?

When a person declares bankruptcy or files a proposal, the Office of the Superintendent of Bankruptcy notifies the credit bureau. We are advised by the credit bureau that for first-time bankrupts, the information stays on your credit bureau report for 6 years (for a second-time bankrupt, it stays on your report for 14 years). A proposal is recorded for 3 years after the completion of your proposal.

After discharge, you can start to re-establish your credit by doing the following:

1. Talk to your banker and say you want to re-establish your credit rating.
   
   

2. Open a savings account.
   
   

3. Be a regular saver: Pay yourself first Take your next raise and save it Save 5 % of your pay
   
   

4. Take out a small loan using the savings account as collateral, and then pay it back.
   
   

5. Apply for a credit card with a low limit and secure the limit by using your savings account as collateral.

   If you have difficulty getting a new credit card, you may want to apply for a "secured card" from your financial institution. A "secured card" is a card backed-up or secured by funds you have deposited with the bank or credit union. Several Canadian financial institutions offer secured credit cards:

   Home Trust Company
   

   Horizon Plus

   Capital One
   
   

6. Do not apply for more than one or two credit cards. Each application for credit will show on your rating. Target one or two financial institutions.
   
   

7. Pay your credit card balances on time.