I live in Ontario, How can I repair my credit?

"I was late with payments when I lost my job; I'm working now, but I can't get a loan."

"I got separated, but because I co-signed my spouse's loans and they didn't pay, now my credit rating is bad."

Bad credit happens for many reasons, including job loss, marriage break up, medical conditions, or just bad money management. If you have bad credit, you may not be able to get a loan, and you may have difficulty renting an apartment or borrowing to buy a car.

How Can I Repair My Credit?

There are a number of ways to repair your credit in Ontario.

First, if there are debts that you have not paid appearing on your credit report, pay them. Your credit score will improve once the debts are repaid. This is easy to do with small debts, like an old phone or cable bill, but may be more difficult to do with larger debts.

If you cannot pay off your debts in full, consider filing a debt management plan, a proposal to your creditors, or personal bankruptcy. While each of these procedures has a serious impact on your credit report, it is often better to deal with the problem once and for all and eliminate the debt, rather than carrying bad debts on your credit report for many years.

Ultimately your credit report will only improve once you have dealt with your debts.

Maintain Your Good Credit

Once you repair your credit, keep it in good repair. Pay your bills on time. Don't bounce any cheques. Pay your balances in full each month. Even keeping current with monthly bills like your phone and hydro bill will help maintain a good credit score. By demonstrating that you are responsible with your money, your credit score will continue to improve.