Quick Credit Repair Strategy to help you get back on your feet!

If you or someone you know has been through an emotional Bankruptcy in Canada due to a major life event, business failure or credit mismanagement, there is still a second chance to get back on your feet. After all, we are human and sometimes bad things can happen to good people. We are here to help!

Although a Bankruptcy may seem like a major setback in your life, many of our clients are often surprised by how quickly they are able to bounce back by following our Quick Credit Repair Strategy. At LoanBox.ca we specialize in providing mortgage financing to Canadians with bad credit, previous Bankruptcy, Consumer Proposal and more.

We have developed a Quick Credit Repair Strategy and by following our proven steps – we can help you qualify for a mortgage in as little as 1 month after the bankruptcy is discharged.

Here are some tips to follow:

1. Get Discharged ASAP – The sooner you get discharged from your Bankruptcy, the sooner you can start to rebuild your credit. Consult your local Bankruptcy Trustee to find out the best strategy for you to get discharged in the shortest time possible.

2. Check Credit after Discharge – After you have been discharged from Bankruptcy, check your credit bureau report from TransUnion Canada and Equifax Canada to make sure that all the debts that were included in your Bankruptcy were also updated, included and paid off on your credit bureau.

3. Re-Build your Credit ASAP –Rebuilding your credit after your Bankruptcy as soon as possible is the best thing you can do to bounce back quickly. The first step in doing so is to apply for a couple of Secured Credit Cards, you can start with one – but we suggest you apply for at least two or more from different lending institutions. Here are a few of these lending institutions that have helped our clients bounce back quickly and successfully: Capital One, Home Trust and Peoples Trust.

4. Pay Outstanding Taxes to Revenue Canada –Even though you have been discharged from your Bankruptcy, the lenders will still want to see that you have paid any outstanding taxes to Revenue Canada. The lender will request tax returns from the previous year showing that the income taxes were paid in full.

5. Apply for an RRSP Loan – An RRSP loan is secured by the RRSP that is invested and is another great way to rebuild your credit quickly and efficiently while growing your savings at the same time. Visit your local bank or credit union and talk to them about applying for an RRSP Loan. If you’re a First Home Buyer in Canada, you will be able to withdraw up to $25,000 from your RRSP to be used towards a down payment of a home in Canada, but only once the loan is paid off.

6. Keep all Bankruptcy Documents – Even though the Bankruptcy has been discharged, the lender which you are applying for mortgage with may ask you to provide a copy of the Statement of Discharge along with copies of the Bankruptcy papers showing all the creditors, accounts and balances that were included in the Bankruptcy. Keep these documents in a safe place as you will very like be asked to provide these documents at time of application.

7. Start Saving – The higher your net worth, the stronger your application will be when you apply for mortgage financing. Lenders will choose your mortgage application over others if you have a substantial savings, good strong income and job stability and re-established credit after being discharged from Bankruptcy.

If you follow our Credit Repair Strategy above, you will be well on your way to getting that mortgage application approved. If you have met the above requirements and are ready to take the next step, you may either Apply Online or Contact Us for more information on how to get pre-approved to owning your own home!