Credit rating after discharge

May 14th, 2006 by Questions

I\’m not real clear on this. It seems as though you will have the r9 rating with you for 6 years after discharge. Yet, I\’ve read the best way to rebuild your credit back up is to get a secured credit card, or a small loan after dischage, and start paying those diligently and on time. After a year or two, credit improves. My question is though, what difference does it make if you will still have the r9 hanging over your head for 6 years? Why not just wait till the 6 years is up? Do you get an improved score, but with an r9 beside it? Would someone please clarify.


3 Responses to “Credit rating after discharge”

May 15, 2006 at 11:05 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:

The R9 is listed with the credit bureau for a maximum of 6 years from the date of your discharge. However, the more positive comments you are able to get registered after bankruptcy, the quicker this R9 will be dropped as a result of more current information. As well, I find that loans are better than a secured credit card as they have a greater impact on your beacon score, so it is not a bad idea to get the secured credit card but I would suggest also looking into an RRSP Loan (and I only suggest an RRSP loan as it is typically the easiest type of contract to enter into with the major banking institutions) and remember it is a numbers game, the more contracts you successfully complete, the quicker your credit will be re-built.

May 22, 2006 at 11:56 am, Anonymous said:

Ok, so after discharge I get a small loan or two, pay off on time and properly, I will get a R1 rating at their completion? A R9 rating will remain as long as there is no credit used for 6 years after discharge. Is this correct?

May 22, 2006 at 3:15 pm, A licensed trustee said:

Each creditor has it’s own rating. Therefore your Mastercard that was included in your bankruptcy may have a rating of R9, and will remain on your credit report for six years after discharge; the new loan you have will have a rating of R1 if you are paying it on time. Creditors look at your entire credit report to determine if they will grant you a loan, so everything on your credit report is important.

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