Can you qualify for credit after bankruptcy or consumer proposal?

Many people think that once they file for bankruptcy or make a consumer proposal they will never be able to get credit cards or mortgages again or that they will have to wait several years before they can apply and qualify. again for credit products. Not only is that assumption wrong, but you could be eligible for credit such as credit cards, car loans, mortgage or home refinance, or student loans or other business lines much sooner than you might. think so.

How soon can you get a credit card, buy a house, get a car loan, or refinance your mortgage after a consumer proposal or bankruptcy?

Most people are discharged from bankruptcy or fully paid off their consumer proposal before asking this question, but in many cases you might be able to get a new mortgage purchase or mortgage refinance, credit card or another loan while you’re still in the middle. bankruptcy or consumer proposal.

Did you know that some lending institutions will let you get a prepaid credit card while you wait to pay your consumer proposal or bankruptcy debts? In the case of a mortgage or home refinance, many B-lending institutions or private mortgage lenders will also be ready to help. In the case of a mortgage refinance or second mortgage, if you have built up enough equity in your property, you can get the extra money needed to fully pay off your consumer proposal and bankruptcy debts.

Although credit cards, car loans and mortgages for those still in process, or those who have just finished paying off their proposal or have recently been discharged from bankruptcy, have higher interest rates high, this could be a viable option to help you out. start rebuilding your credit. By rebuilding your credit faster, you will be able to benefit from a wider variety of credit products at lower interest rates and on better terms.

To be clear, I don’t recommend going into more debt or having high mortgages if you haven’t yet been discharged from your bankruptcy debts or paid off your consumer proposal, unless unless you have very specific reasons that make good financial sense.

Why should you repay your consumer proposal as soon as possible?

The urge to pay off debt faster should be a top priority, especially since most consumers have more debt than they can comfortably afford. When it comes to reimbursing your consumer proposal sooner, here are 3 good reasons to do it as soon as possible:

  1. You need to renew your existing mortgage soon:

    If you currently have a mortgage with a lender with which you have a credit card, car loan, or other debt product that you include in your bankruptcy or consumer proposal, you probably won’t be able to renew your mortgage. with them once your term is up. This can put you in a tough spot because you could lose your home unless you pay off your mortgage in full or find another lender willing to mortgage you for the full amount. Since a consumer proposal stays on your credit file for either 3 years from the date you repay it, or 6 years from the date you file it, the sooner you repay it, the sooner it is removed from your record and you will find it easier to qualify for a mortgage to replace your existing loan.

  2. Improve, rebuild and maintain a high credit score:

    If you’ve ever filed a consumer proposal or filed for bankruptcy, you know your credit score is taking a serious hit. The sooner you pay off your bad debts, the sooner you can begin to restore a credit rating that will open the doors to more accessible credit at lower and more reasonable interest rates.

    Repay debts

  3. Improve your cash flow:

    If you are not yet discharged from bankruptcy due to unpaid debts, or if you still owe payments on your consumer proposal, you are most likely feeling the pinch of having little or no cash available. If so, then by paying off your bad debts faster, you may feel some relief. If you’re taking out a 2nd mortgage or refinancing your home to consolidate debt or pay off your consumer proposal, you’ll likely have some extra cash left over to help you feel more financially free. Budget wisely for the next few moments and you’ll be on your way to healthier credit and a brighter financial future.

We are all human and we all make mistakes. Sometimes people have to declare bankruptcy or make a consumer proposal through no fault of their own. Life circumstances, illnesses, family situations, and many other unexpected factors beyond our control can put us in financial disarray. Ultimately, your goal should always be to get back on your feet and improve your situation.

Bankruptcy or a consumer proposal may be the second chance you need. However, it is even more important to continually strive to improve your credit score and rebuild a positive credit history so that you can qualify for the best credit products possible, such as low rate credit cards. interest, affordable car loans or low interest loans. mortgage product rates in the future.