How do I Rebuild Bad Credit in Canada?

Canadian lenders check your credit record each time you apply to borrow money and may decline your application because of bad credit. Credit checks are recorded on your file by the two credit reporting bureaus, Equifax Canada and TransUnion Canada. Each time you apply and are declined, your credit rating worsens. To rebuild your credit in Canada, request a copy of your credit report. It will provide an overview of all your credit and which areas need rebuilt.

Instructions

1

Apply for your Canadian credit disclosure report. You can get it free by mail from Equifax Canada or TransUnion Canada. You must pay a fee If you want to view your report online.

2

Check your Canadian credit disclosure report for missed or late payments. Lenders report these to the credit reporting bureaus. Pay late or missed payments as soon as possible. Once you have cleared late payments and paid further installments on time, you will start to rebuild your bad credit.

3

Review the credit card limits shown on your Canadian disclosure report. Check if you have exceeded your limit. You need to bring your balance below your agreed credit limit quickly. Stay within your limit and keep reducing it to rebuild your bad credit.

4

Check your report for errors. Inaccurate information may create a bad credit rating and is easily rectified. Write to your lender with details of the error. Canadian lenders must correct erroneous information within 30 days, or 90 days in Alberta. Check the Financial Consumer Agency of Canada for more information, available through the link in Resources.