When you file for a consumer proposal, it shows up on your credit report as a negative mark. However, making timely payments towards your new consumer debt can help improve your credit score over time. Each time you make a payment on time, it demonstrates to lenders that you’re responsible with your finances and can be trusted to pay back your debts. As you continue to make payments on time, your credit score will gradually improve, and the negative impact of the consumer proposal on your credit score will lessen.
5 Steps to Rebuild Your Credit Score
If you’re looking to rebuild your credit score after filing for a consumer proposal, here are 5 steps you can take:
- Make Payments on Time – Paying your consumer proposal on time is crucial to rebuilding your credit score. Consider setting up automatic payments to ensure you don’t miss any payments.
- Check Your Credit Report – Regularly check your credit report for any errors or inaccuracies that could be negatively impacting your score. If you find any errors, dispute them with the credit bureau.
- Keep Your Credit Utilization Low – Try to keep your credit utilization under 30% by paying down your balances or requesting a credit limit increase.
- Build a Positive Payment History – Consider getting a secured credit card or a small personal loan and make payments on time. This will help you build a positive payment history, which will positively impact your credit score.
- Be Patient – Rebuilding your credit score takes time, so be patient and consistent with your efforts. As long as you continue to make payments on time and practice good financial habits, your credit score will gradually improve.
Paying your consumer proposal on time is an essential step in rebuilding your credit score. It demonstrates to lenders that you’re responsible with your finances and can be trusted to pay back your debts. By making payments on time, checking your credit report for errors, keeping your credit utilization low, building a positive payment history, and being patient, you can take control of your credit score and improve your financial future.
If you are ready to take the next steps to Shed The Debt and rebuild your financial future, call Goldhar & Associates Ltd. Licensed Insolvency Trustee today to get started! Dial toll-free at 1.855.967.DEBT (3328) or email us at firstname.lastname@example.org.