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2nd bankruptcy and Credit Report

I claimed my first bankruptcy and was discharged in 92. Unfortunately, I claimed bankruptcy the second time in 2001 and was discharged in Oct 03. Since then I have worked very hard at re-establishing my credit by paying off my car loan, acquiring a unsecured credit card (all payments up to date, never late). Today I applied for a new vehicle and was turned down. So my question is two fold.

1. I was under the impression that after 7 years the 1st bankruptcy is to be purged from your record. Yet mine still shows.

2. What the heck else can I do to re-establish my credit?

I realize I have no one to blame for my woes but myself, so I guess I’m just looking for some advice here. Thanks

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One Response to “2nd bankruptcy and Credit Report”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

There isn’t much can say as to why the 1st bankruptcy still shows up, I suggest contacting the credit bureau and informing them of the discrepancy, perhaps getting this fixed will be as simple as sending a copy of your original discharge certificate.

In terms of rebuilding credit, following these steps will help you to rebuild your credit.
1. Talk to your banker and say you want to reestablish your credit rating.
2. Be a regular and persistent saver.
3. Borrow using your savings as security. Secured loans are debts you incur that are backed up by some sort of asset or guarantee and are the easiest type of loans to obtain (consider obtaining a secured credit card from an organization such as hometrust).
4. Borrow for an RRSP. For some reason, banks have made it easier to obtain loans for RRSP’s than most other forms of credit.
5. Replicate steps 3 & 4.
6. Borrow when you don’t need to. Obtain a small line of credit. Use it to pay bills and then immediately pay off the line. Repeat this process and over time, it will have a marked improvement in your credit report.

The key to all of this is that you must pay your bills on time. Don’t bounce any cheques, don’t miss any due dates, and don’t overdraw any of your accounts (even if you have overdraft protection). As well, always remember doing the above on a small scale reduces the risk and can increase the number of contracts you can enter into and hence the number of positive comments on your credit history.