Rebuilding Credit Archives - Fresh Start Now

How do I rebuild my credit rating after a bankruptcy in St. Catharines?

Kathy Lenart — Mon, 20 Oct 2025 17:53:36 +0000

There is no magic fix to rebuild your credit rating after filing bankruptcy. Slow and deliberate action must be taken to gain positive reportings on your credit report that will then improve your credit score. You must also be cautious about applying for credit if you have concerns about qualifying. Being rejected for credit will further negatively impact your credit score.

Several tips to improve your credit rating after filing for bankruptcy in St Catharines:

Accumulate savings and then apply for a secured credit card. You will need to save $500 – $1,000 to provide as security and will then be granted a credit card with the same limit.
If you made monthly payments to your trustee during your bankruptcy, set aside those excess funds in savings until you have the funds for the deposit.
Invest the time in researching different secured credit cards that are available from your bank or other lending institutions. The annual fees and interest rates will fluctuate, and since you intend to pay the debt in full each month, I recommend the lower annual fee.
Put your groceries and gas on your credit card every month and pay the balance in full by the due date. You should have developed a budget during your credit counselling sessions, so you are comfortable charging your groceries and knowing you have the funds to pay the balance when due.
Utilize 30% of your credit limit. Do not max out your credit card every month.
Pay your bills on time. Cell phone providers typically report to the credit bureaus, so make sure you pay on time every month.
Once you have used a secured credit card for a year or so, talk to your bank about obtaining a traditional credit card with a low balance.
Store credit cards like Canadian Tire and Home Depot are typically easier to qualify due to the very high interest rate charged on balances. If you pay the balance in full every month, the interest rate is irrelevant.

If you are struggling with debt, don’t let concerns about the impact on your credit report stop you from taking steps for a permanent solution. Reach out to the trustees at Taylor Leibow Inc. today.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)

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Check Your Credit Report with These Credit Reporting Agencies in Ontario

Kathy Lenart — Wed, 19 Apr 2023 19:32:59 +0000

It is recommended that you check your credit report at least once a year for accuracy and to identify any fraudulent activity. There are two major credit reporting agencies in Ontario – Equifax Canada and Trans Union Canada. Checking one agency and then following up with the other after six months will enable you to detect any fraudulent activity more quickly.

You can obtain a consumer disclosure or report from each agency free online at www.equifax.ca or www.transunion.ca. Creditors voluntarily report to the credit bureaus, so your report may not disclose all of your debt. Review your reports to ensure:

Your personal information is accurate, and there are no unknown addresses or phone numbers attached to your account
Any debt that is reported is owed by you
Payments are accurately reported
There are no accounts listed that you were not aware of
A bankruptcy or consumer proposal is properly reported
There are no negative reportings on your account past the maximum reporting period

Errors on your credit report could impact your ability to obtain future credit and also be a sign of fraudulent activity. If there is an error on your report, contact the credit bureau to request the error be corrected by providing supporting documentation. If you think you are a victim of identity theft, notify the credit bureaus, put an alert on your bureau to caution future lenders to contact you before granting credit, and notify the Canadian Anti-Fraud Centre.

Being diligent in regularly checking your credit report and correcting issues on a timely basis will ensure future credit applications are not impacted by inaccuracies.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)

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Your credit bureau reports

Kathy Lenart — Tue, 19 Feb 2013 00:00:21 +0000

When applying for any type of credit, the lender will request a copy of your credit bureau report. This gives them a picture of how you pay your outstanding debts. The two major credit reporting agencies in Canada are Equifax Canada and Trans Union of Canada. Both these agencies obtain their information directly from the institutions that you owe.

As you can probably guess, Equifax and Trans Union deal with millions of pieces of information on a monthly basis and sometimes mistakes can happen, which can result in false credit scores.

Last year a CBC News report found that in most cases, consumers were not aware of the negative information in their reports. With so much emphasis on credit scores, it’s vital that consumers become more aware of what’s being reported in their individual files. It’s equally important to know what impacts your credit score.

Here are the factors that contribute to your credit score:

• Payment history –accounts for about 35% of your credit score. Carrying balances from month-to-month and missing payments (number of missed payments and how long ago the payment was missed) impact your score. Tip: Pay at least the minimum payment by the due date.

• How much you owe –looks at the total outstanding balance in relationship to the total of all your credit limits and accounts for 30% of your credit score. Tip: Pay down your debt to at least 30% of your global loan limits.

• Your account history – the length of time you’ve had credit accounts for 15% of your score. The longer you’ve had credit, the higher the value.

• Recent inquiries – accounts for 10% of your score. Too many inquiries sends a message that you need money, which negatively impacts your score. Ordering your own credit report has no impact.

• Type of credit –accounts for 10% of your credit score. Credit is either revolving, as with credit cards, or installment, as with car loans. Higher scores are given to people with a blend of credit from various sources.

• Collection or bankruptcy –negatively impacts your score. Once discharged from a bankruptcy or a consumer proposal, you can rebuild your credit and you may find you are in better shape than before you filed. Contact a licensed Trustee in bankruptcy for more information.

Consumers can request their credit report information via mail or online. Credit reports via mail are free but do not include your credit score. Credit reports and scores are available online for a small fee. For more information visit Equifax at www.equifax.ca and TransUnion at www.transunion.ca .

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)

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Is there life after bankruptcy?

Kathy Lenart — Tue, 22 Jan 2013 00:00:07 +0000

Filing for bankruptcy is not a life sentence –you will have your financial life back once the bankruptcy is discharged if you develop a new strategy for dealing with debt.

The decision to file can be difficult and emotional since you are likely feeling embarrassed and disappointed in yourself. However, there may be a number of contributing factors such as job loss, divorce, or business failure. Fortunately, the government has a provision in the Bankruptcy and Insolvency Act that recognizes that sometimes life doesn’t go the way we want and gives us an opportunity to start over with a clean slate.

Although it may seem overwhelming to rebuild your life post-bankruptcy – your credit rating, finances and your emotional well-being – you don’t have to wait for years to start the process.

First of all, find a way to make peace with the guilt feelings. In 2011 there were 122,999 filings according to the Office of the Superintendent of Bankruptcy Canada. It’s not uncommon for filers to consider themselves as failures. It’s important to see the situation in a positive way in order to move forward. Also, consider getting a support system of family and friends – make sure to surround yourself with positive people – who can help you deal with some of the ups and downs you may feel after bankruptcy.

Second, reflect on how you got to this point and what you will do differently in your financial afterlife. One strategy might be to make sure you have a reserve fund set aside in case of job loss or illness.

Third, create a realistic budget. It’s critical that you become more aware of your financial situation. Where does the money go? A budget can help you manage your cash flow better. Try to live within your means, which shouldn’t be difficult once the debt has been taken care of in the bankruptcy. You will want to try and prevent yourself from getting into the same situation.

Two items are important when developing your budget – have an emergency fund and a line for savings so you can pay yourself first. Also, pay all your bills on time. Don’t underestimate the power of this last suggestion. It is one of the single most powerful things you can do to restore your finances and your self-esteem.

Finally, a key strategy is to start to rebuild your credit by getting a credit card. You can do this with a secured credit card. You deposit an amount of money, such as $300, with the credit card company and that becomes your credit limit. Ensure the company reports to the credit bureau and make your payments on time, even if it’s just the minimum.

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The Aftermath – Rebuilding Credit

Kathy Lenart — Wed, 28 Nov 2012 00:00:04 +0000

A personal bankruptcy will remain on your credit rating for six years from your discharge from bankruptcy.

A consumer proposal will remain on your credit rating for three years from completion of your proposal.

Once you are discharged from bankruptcy or completed your consumer proposal, you should take pro-active steps to rebuild your credit. The following will assist in rebuilding:

talk to your current bank manager
open a savings account and deposit a set amount from each pay cheque
apply for a small loan using your savings account as security and make the monthly payments on time
apply for a secured credit card and make purchases on the credit card and pay it off every month

We refer to the following credit bureau websites for further information on your credit rating:

Information on secured credit cards can be obtained by accessing the following websites:

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