Rebuilding your Credit History after Bankruptcy
After bankruptcy, at some point you may look at getting a personal loan and wondering “Can I get a Personal loan after being discharged from Bankruptcy?”
The majority of Type ‘A’ lenders (most major banks) may not offer credit to someone that has been cleared from bankruptcy in the past 7 years. 7 Years is the time that your bankruptcy will be associated with you on your credit report. So getting a line of credit from some major banks could be a bit more difficult.
What are Some Options?
Credit History Review. It is always a good idea to keep track of your credit rating and history, so if any discrepancies do show up, you have the option of providing up to a 100 word note explaining the situation from your side.
Secured Credit Card. What is a secured credit card? This type of credit card is secured via the money deposited with the bank you are dealing with. The credit that is granted is equal to the amount of money that you deposited. This can help with building your credit history and rating. While any type of credit card may not be a good option for all, there are still other viable options. Read more on using credit wisely for a more indebt look.
RSP/RRSP loan. You could also consider applying for a RSP/RRSP loan with your bank.
Savings. If you don’t have a savings account, now would be a good time to start one up. If you do have one, make it a point to start putting away money each month, and be consistent about saving. Having some type of savings that you can access it for any emergency bills that come up can be helpful as well. At some point there will be an unexpected bill, and having a bit of extra cash to use can help you with getting through this.
Rebuilding your credit takes time.
You need to be consistent about making your payments with any loans, bills and/or credit cards that you do have. These payments have to be paid on time each month (no missed payments). Keeping a steady and consistent track record will help you with regaining/rebuilding your credit history.
If you are in the Greater Toronto area and need assistance, call the offices of David Sklar & Associates at 416-498-9200 to book your free consultation. We will assess your finances and demonstrate how you can get out of your money crisis and get on with your life
