Credit Repair: Rebuilding Credit in Vancouver

Is it possible to rebuild bad credit?

Yes. If bad credit history is the reason banks are refusing you a loan, then you should consider taking steps towards credit repair. In Vancouver, or anywhere else, rebuilding credit is not an easy task, but it is not an impossible assignment either.

How long do bad credit marks stay on my report?

Except for in rare cases, bad marks will stay on your credit report for up to seven years.

If I can't wait seven years, what should I do?

Start by getting a copy of your credit report. It is possible to repair your credit on your own, but you need to know where the problem areas are before you can do this.

What if the only negative thing on my report is some money on an old credit card?

If you only have $100 dollars or so on the old credit card, simply save up that amount of money, contact the credit card company, and make the payment. Paying off your debts is the quickest route to rebuilding your credit.

What if I can't manage to make the payments?

In that case you may have to consider a debt management plan, a consumer proposal to the people you owe or, if all else fails, filing for personal bankruptcy. Bankruptcy should be your last resort.

How do I start rebuilding credit after I file for bankruptcy?

Start by borrowing fully secured money. Secured loans are the ones that are backed up by your asset or guarantee (a car loan for example). If you don't pay these loans back, your creditor will sell the "security".

What if I don't want to borrow secured money?

You could also consider finding a co-signor. With this option, the credit will be given to the co-signor not to you. Paying the loan will help you repair your credit; but if you don't pay, your co-signor will.

What else can I do to rebuild my credit?

Get a secured credit card. Put a certain amount of money on a deposit with a bank, and pledge the money as security for the card. If you are unable to make the payments, the bank will just take money out of your deposit and reduce your available credit.

I've heard people with RRSPs get treated differently by banks. Is this true?

Yes. Banks see people with RRSPs as responsible people, since they are obviously thinking about the future. For this reason, it is strongly advised that you borrow for one. When you get a tax refund, use the refund to repay the loan. This way, you will be paying off the loan much faster than is necessary.

Should I get a credit even if I don't need it?

Yes. You should get a small line of credit and use it to pay off bills. Then, pay off the line right away. After you repeat this step several times, your credit report will be noticeably improved.

What is the most important thing to remember?

When it comes to credit repair, the best advice we can give is to pay your bills on time, and do not let any cheques bounce. The credit system wants to know that you can handle your finances, and that when you borrow money, it is not because you have to, but because you want to.