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How to rebuild the credit ?

I filed the consumer proposal in 2005. I am recently pay off the whole amount.

My question is :
How can I rebuild the credit ?
Any other option ? e.g. deposit a lump sum amt of money to get a credit card to rebuild a credit.

One Response to “How to rebuild the credit ?”

Barton Goth GCO Bankruptcy Trustees said...

In terms of rebuilding credit, following these steps will help you to rebuild your credit in as quick a fashion as possible.
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.