Consumer Proposal and Rebuilding Credit

Question: I filed a consumer proposal in 2005. I completed 3 years of payments and was discharged in 2008. How long before the record disappears from my credit report. How can I rebuild our credit, when we don’t qualify for a loan right now.

Answer: Each credit reporting agency in Canada will handle this differently.  In general, a consumer proposal will remain on your credit report for three years after the date of discharge.  So, if you completed your payments in 2008, the proposal should drop off your credit report at some point in 2011.

You can start rebuilding your credit by borrowing small amounts of money.  For example, you can get a secured Visa card; you put $500 or more on deposit, and you get a credit card with a $500 limit.  It appears on your credit report as a normal credit card, which is a positive sign for future lenders.

In addition, save money, and keep all of your regular monthly bills current, and you will gradually repair your credit.

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