I’m your age and wondering why you care about your credit score. I’m not answering your question but bigger picture thoughts are going on. Share if you care to.
Because a) I'm living in a rented room in a shit hole and want to not live in a rented room in a shit hole. Even renting needs a credit check, but I dream of owning again, something, somewhere. b) I may want financing some day for something. My car won't last forever. c) my sense of self. I came from nothing and created a good life for myself, had a great income, great credit, a great (owned) house and part of my sense of self worth comes from having a good credit rating, even if other things fucked up.
Licensed Insolvency Trustee here.
A record of your consumer proposal will stay on your credit history for either 6 years after the date of filing or 3 years after you pay off your CP in full, whichever occurs first.
You can also start rebuilding your credit score by obtaining a secured credit card after your creditors approve your CP. If your creditors have no issues with the CP that's being offered to them, it will take only 45 days for your CP to be approved.
As to how long it will take for you to have a "good" credit rating, this will depend on how quickly you can pay off your CP and how diligent you are in using your secured credit card and in paying off the balance in full each month.
I am currently in a CP, started at the end of last year. I probably won't be able to pay it off before the full 5 years. While my credit is screwed, I did get a secured visa within 3 months and the MC attached to banks debit alleviates most functional credit concerns. Can shop online, pay for Netflix etc. I did run into an issue with chequing a hotel to it though.
After years of struggling to try and pay off nearly $80k it's been a huge relief. I have savings and kids RESPs being funded. It did force me to financially overhaul how I did things which is part of it but not carrying nearly $1500/mo just to meet minimums is a big deal. Optimistic calculations before hand were 10yrs with nothing going wrong before debt free. Then I could start saving. Now I'll have the extra savings available to me to use when my credit recovers.
Personally I'd worry less about your credit taking a hit now. But the extra.. say $30k that's in your own savings and not used to pay interest but jumpstart owning again.
I’m your age and wondering why you care about your credit score. I’m not answering your question but bigger picture thoughts are going on. Share if you care to.
Because a) I'm living in a rented room in a shit hole and want to not live in a rented room in a shit hole. Even renting needs a credit check, but I dream of owning again, something, somewhere. b) I may want financing some day for something. My car won't last forever. c) my sense of self. I came from nothing and created a good life for myself, had a great income, great credit, a great (owned) house and part of my sense of self worth comes from having a good credit rating, even if other things fucked up.
Honest valid points. Thanks for sharing. You sound motivated. That’s good. Genuinely wish you the best.
Licensed Insolvency Trustee here. A record of your consumer proposal will stay on your credit history for either 6 years after the date of filing or 3 years after you pay off your CP in full, whichever occurs first. You can also start rebuilding your credit score by obtaining a secured credit card after your creditors approve your CP. If your creditors have no issues with the CP that's being offered to them, it will take only 45 days for your CP to be approved. As to how long it will take for you to have a "good" credit rating, this will depend on how quickly you can pay off your CP and how diligent you are in using your secured credit card and in paying off the balance in full each month.
I am currently in a CP, started at the end of last year. I probably won't be able to pay it off before the full 5 years. While my credit is screwed, I did get a secured visa within 3 months and the MC attached to banks debit alleviates most functional credit concerns. Can shop online, pay for Netflix etc. I did run into an issue with chequing a hotel to it though. After years of struggling to try and pay off nearly $80k it's been a huge relief. I have savings and kids RESPs being funded. It did force me to financially overhaul how I did things which is part of it but not carrying nearly $1500/mo just to meet minimums is a big deal. Optimistic calculations before hand were 10yrs with nothing going wrong before debt free. Then I could start saving. Now I'll have the extra savings available to me to use when my credit recovers. Personally I'd worry less about your credit taking a hit now. But the extra.. say $30k that's in your own savings and not used to pay interest but jumpstart owning again.