I recently filed a bankruptcy and more recently was discharged. Can you tell me what the best way is to begin to rebuild my credit? I really want to start a new life with credit and I want to make sure I do things right. Thank you.
How do I re-establish a Credit Rating after bankruptcy?
Posted on Monday, April 14, 2008
posted by Questions @ 8:04 am
1 Expert Comment:
At April 15, 2008 |
5:37 am
, Barton Goth GCO Bankruptcy Trustees Said...
Re-establishing a credit rating is a fairly straight forward process. By follolwing the steps below you will find that you credit history will be re-established much quicker than the 6 years after discharge tat the credit bureau quotes.
Steps:
1. Be a Regular and persistent saver
2. Talk to your banker and say you want to reestablish your credit rating.
3. Borrow using your savings as security. I always prefer a loan as I find they have a little stronger impact on the regulding process, but you could also do this with a secured credit card (consider obtaining a secured credit card from an organization such as Capital one or Hometrust). While I prefer the loan, it is not a bad idea to have both a small loan and a small secured credit card.
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.
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.
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