Your Fastest Route Back to Good Credit

Most people want to pay their bills! But often folks reach a breaking point where even maintaining minimum payments becomes difficult – but they think that in maintaining these minimum payments they still have good credit.

Your credit rating/score is made up of several factors:

  • How long you have had credit.
  • How often you apply for credit.
  • How many credit products you have.
  • What you owe on your credit products in correlation to your credit limits.
  • … and of course, how you pay your credit.

Being overloaded with debt and having maxed-out credit cards does not necessarily equal a good credit rating. The only way to get back to having good credit is to pay down those cards. When struggling to make even the minimum monthly payments, this can take many, many years.

If you look at your credit card statements, many will tell you that you could be looking at 10, 20, 30 years or more to pay off your balance when making only the minimum monthly payments. At this rate of payment, the total cost of borrowing is truly staggering!

How Consumer Proposals Help

A consumer proposal provides you with a new beginning and the ability to start fresh, including rebuilding your credit rating.

Yes, a consumer proposal will be reported on your credit report BUT:

  • 1. The filing of a consumer proposal immediately “freezes” your credit report. The perpetual reporting of any negative information for a further 6 years is stopped.
  • 2. You can begin rebuilding credit as soon as the consumer proposal has been accepted, whereas getting new credit to show positive habits when already loaded in debt will only make your credit score worse.
  • 3. It is removed 3 years from the date that the consumer proposal is paid in full – this means that if you pay off your consumer proposal in 3 years, by year 6, it will be completely removed from your credit.
  • 4. Many CMHC insured mortgage lenders and car loan companies will approve financing once a person has completed a consumer proposal and has 1-2 years of re-established credit.
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