How can I Remove Bad History from My Credit Report?
How can I wipe out a bad borrowing history?
Some items will stay on your credit report for several years anyway:
- A bankruptcy will stay on your credit report, from the date of discharge, for six or seven years (or in some cases up to 14 years), depending on the credit bureau, the province you live in, and whether you were also previously bankrupt.
- A consumer proposal will stay on your credit report, from the date of discharge, for three years.
However, some lenders will consider giving you credit anyway, if you eliminate the other bad history and create some good history.
To eliminate bad borrowing history from your credit report as quickly as possible:
- If you are in bankruptcy, finish your bankruptcy as soon as possible. Then the bankruptcy will fall off your record sooner, and make borrowing easier.If this is your first bankruptcy, you can get automatic discharge in nine months – IF you have completed all of your bankruptcy duties, which include making all the needed payments, reporting monthly to your trustee, and going to credit counselling.
- If there are unpaid debts, get them paid off. There is no way around this. Give first priority to the small items, because they are easiest.You may need new money management skills – credit counsellors and others can help you with this.If you think there is no way you can completely repay your debts, bankruptcy or a consumer proposalmay be necessary – consult a Licensed Insolvency Trustee for advice.
- If any items are in error, contact the credit bureau to correct them. You will probably have to supply evidence that you already made the payments required. If you think you never incurred the debt, arrange for the lender to supply evidence.