Rebuilding Credit

Print | E-mail this Article | Bookmark this Page  

Total credit repair may seem like an unattainable goal, but with perseverance, you will gradually begin to get yourself back on track financially.

Below is a list of some things you can do to speed up the credit repair process:

1. Finish the bankruptcy as quickly as you possibly can. First time bankrupts are eligible for immediate discharge after nine months. To complete the bankruptcy, you need to take care of all necessary duties, including monthly reports to the trustee, attending credit counseling sessions, and making all necessary payments. The bankruptcy will disappear from your credit report the faster you complete it.
2. Save some money. Banks are known for lending money to people who do not need money, as opposed to those who do. You must be able to show that you are capable of paying back your debts, and the greatest way to do this is to prove you have savings. By investing a certain amount of money into the bank each month, you will eventually build up a substantial security deposit to be used for borrowing in the future.
3. Find a copy of your credit report. You can find a copy by contacting a credit bureau in Abbotsford. You need to review the credit report in order to figure out where you went wrong with your finances. If there is anything listed on the report that you believe is a mistake, contact the credit bureau as soon as possible.
4. Obtain a secured credit card. Getting a credit card is one of the greatest ways to rebuild credit. You can use your savings on one card, to get a second credit card with a comparable credit limit. It will show up on your credit report as a normal credit card, and you now have a second credit card to use if need be.
5. Begin an RRSP. Use your additional savings and put money into an RRSP with an investment advisor or a bank. If you contribute a certain amount to an RRSP, the bank will likely lend you additional funds to invest in your RRSP. Those funds will generate a tax refund during tax season, which will be enough to pay your loan. This is impressive for your credit report! You’ll also have extra funds invested in the RRSP.
6. Don’t stop saving. Your savings will eventually be enough to put a down payment on a car or house.

Rebuilding credit can be a frustrating task, and it may take some time to complete. If you do your best to save money, and follow all of the necessary steps, you will soon be on your way to a better financial future.

back to top