3 Ways to Rebuild Credit after a Consumer Proposal in Hamilton or Toronto

December 5, 2017

While Consumer Proposals can be tough on your credit rating, you can start rebuilding your credit almost immediately after filing.

Your credit rating is an assessment of risk, and a representation of your record of paying back what you owe. It’s constantly changing to reflect your payments and delinquencies, which means that, by doing these 3 things, you can get back on the path towards restoring your credit:

Continue to Make Payments on Your Remaining Loans

Loans that are not covered by Consumer Proposals, such as equity loans against your car or home, actually present an excellent opportunity to start rebuilding your credit.

By making regular payments on these loans, you can show future creditors that you are responsible enough to maintain a payment schedule, gradually rebuilding your credit score and regaining their trust.

Make All Payments on Time

Always keep up with your ongoing expenses, such as utilities, your cell phone, your rent, and so forth. This will ensure that your efforts to restore your credit aren’t hindered by more instances of missed payments.

Also, and perhaps most importantly, always make your Consumer Proposal payments on time. Missing payments mandated by your Consumer Proposal could void the agreement altogether, and makes it extremely unlikely that you will be able to file another Consumer Proposal in the future.

Consider Low-Limit Unsecured Credit Cards Over Pre-Paid

Prepaid credit cards are an option to help those with compromised credit to make online purchases, but they don’t actually help your credit score.

Going to a major bank and getting a credit card with a low limit (even as low as $500) to use for small purchases can help you prove that you’re capable of handling debt, and gradually rebuild your credit score.

Just make sure that you keep your spending in check, and that you immediately pay down any outstanding balance.


If you’re feeling overwhelmed by debt, please contact us for a free consultation with one of our experienced Licensed Insolvency Trustees. With offices in Toronto and Hamilton, the Fuller Landau Debt Solutions team can help you get a fresh start and lead a FULLER life. If you’d like more information on credit counselling, debt consolidation, Consumer Proposals, Bankruptcy, debt management, or rebuilding your credit, we also invite you to follow us on Facebook, LinkedIn, or Google+.