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Credit Repair Nova Scotia - Credit Score NS
Getting Credit after Bankruptcy or a Proposal or a Credit Counselling Debt Repayment Program.
Following these steps will enable you to rebuild your credit rating in the quickest possible time.You will be able to get a secured credit card and a car loan shortly after you are discharged. Provided you meet the income tests, a year after your discharge you should be able to qualify for most loans at excellent interest rates.
Two years after your discharge you will be able to get the most difficult credit of all - a mortgage - at the same interest rate, as the most credit worthy person who has never been in bankruptcy.
Step 1 - Get your Bankruptcy Discharge or the Certificate of Completion for your Consumer Proposal or Division I Proposal. This proves you have been discharged or have successfully completed your consumer proposal.
Step 2 - Clean up your credit.Check your credit report and write to the credit bureau to correct any errors.
Step 3 - Gain New Credit.You now have to acquire new credit to prove your credit worthiness. A good place to start is with a secured credit card. Getting a secured card, at the link that follows, is virtually guaranteed. You should also get other credit such as a loan for an RRSP, a car loan etc.
Using a secured credit card is a quick way to rebuild your credit rating. Peoples Trust reports your payment history to the credit bureaus each month. As you make regular payments your credit history looks better and better.
Card Features include:
• Minimum deposit of $500;
• Credit limit is 100% of security deposit;
• Monthly fee for cardholder is $5.95;
• One time set up fee of $49.00;
• Security deposit earns interest annually in a CDIC insured GIC Account (current rate is 0.50%);
• Available in all Canadian Provinces;
• Approval is virtually guaranteed.
Not all Secured credit cards report your payments to the credit bureau.If your payments are notreported then you will not be increasing your credit score and you will not have re-established credit.
After You obtain the secured card you should do the following:
1) RAISE YOUR SCORE: You want to get your FICO score back up to about 700 or higher, because then you can qualify for a mortgage.
You can check your FICO credit score every four months or so to measure how you are doing. When you check your own credit score it does not adversely affect your credit score. If you are making multiple credit applications and creditors are checking your credit score this will have a negative effect of your credit score.
FICO scores are just guidelines, and don't mean that you cannot be approved even if your FICO score is low. There are other factors that can affect lending decisions based on credit worthiness. Some factors that might persuade a lender to be more lenient towards granting a loan to a borrower with a lower FICO score include:
• A larger down payment
• Low debt-to-income ratios
• Excellent money saving history
• Reasonable explanations for negative items on a credit history
2) INCREASE YOUR LIMIT: If you start off with the minimum $500 limit, you will want to increase your limit on your card to show that you can handle a higher limit.
A $1,500 or $2,000 limit is better than a $500 limit as it shows more responsibility. You will find that after 12 - 18 months of responsible credit card use you will qualify for an unsecured credit card.
What is a Good Form of Credit To Gain After Bankruptcy?
Any credit is good credit so long as the payment record and fact of the debt is reported to the credit bureau. A secured credit card is one of the most cost effective ways to rebuild your credit. Other debt such as auto loans and RRSP loans are also popular.
CMHC only needs one form of re-established credit for 12 months after bankruptcy, but Genworth, CMHC's competitor, asks for 2 forms of credit for a minimum of 24 months after bankruptcy.
Here are some After Bankruptcy Lenders who will give careful consideration to lending you money, knowing you have been in bankruptcy: