How to Rebuild Credit in Saskatchewan

In Saskatchewan, as in other North American jurisdictions, there is life after debt. There is even life after bankruptcy. As is the case elsewhere in Canada, credit repair is like learning to walk and talk again after a stroke. Regain your confidence. Prepare well. Develop a strategy, and implement it. Bankruptcy makes recovery harder. Yet, whether you were bankrupt or just racked up too many missed payments on your credit report, the results of credit repair can make the sacrifice worthwhile.

Instructions

Preparation

1

Examine your credit report. According to Saskatchewan Bankruptcy, Equifax Canada is the largest credit bureau in Saskatchewan; TransUnion Canada is second. Visit each of their Web sites, and apply for the free credit report you're entitled to each year.

2

Reflect on why you have bad credit. Be honest. Consider whether you suffer from financial illiteracy, chronic financial indiscipline or bad luck from job loss, cancer or divorce.

3

Write down your weekly or monthly earnings and expenses. Calculate your net worth, which is the difference between what you own and what you owe.

4

Visit a public library, and borrow one of the dozens of books listed under "consumer credit." Don't worry about the paucity of specific Saskatchewan books. Credit repair in Saskatchewan, according to Saskatchewan-based chartered accountant and bankruptcy trustee Marla Adams, is about the same as in the rest of Canada. Start with "The Wealthy Barber" by Canada's David Chilton or Robert T. Kiyosaki's "Rich Dad, Poor Dad." Ask the business or reference librarian about additional titles.

Strategy

5

Set goals. Plan how much you will improve your score over the next six, 12, 18 and 24 months.

6

Prepare and follow a budget. Save. Start with 10, five or even one percent of your income and put it into savings.

7

Become a smart borrower. Chartered accountant Marla Adams says you must understand the difference between credit and income. A loan or a credit card is not a lottery to be celebrated. It's a debt to be repaid. Borrow only what you can afford.

8

Consider applying for gas station or department store cards. Business writer Sharon Chennault says that "these types of credit cards are easier to be approved for" but that "this does not mean you should apply for many of them." She suggests you use them sparingly, and cancel them once you've established a credit history. Interest rates for gas station or department store cards are even higher than for other credit cards.

9

Apply for a secured credit card or two from Capital One, TD Canada Trust and/or other financial institutions. Both Bankruptcy Saskatchewan and Moneyproblems.ca explain that you can obtain a secured credit card with your savings as collateral. Treat these cards like any other credit card if you're serious about credit repair. Pay a substantial portion of the balance each month. Pay all if you can.

People Recovering from Bankruptcy

10

Take advantage of one difference between bankruptcy laws in Saskatchewan and those in some other provinces--the fact that you can keep vehicles or farm tools, even expensive ones--that you need for work. Use these to resume or increase your income.

11

Remember that some debts, for example child support, don't disappear with bankruptcy. In Saskatchewan, student loans are not "automatically discharged" unless the debtor has been out of school for more than 10 years, according to Bankruptcy Saskatchewan.

12

Save. This advice is even more crucial after bankruptcy than in other attempts at credit repair. Bankruptcy Saskatchewan says that "saving money can change how long bankruptcy stays on your credit report in Saskatchewan."