Bankruptcy | Canadian Credit Scoring

Shopping for Canadian Credit

We have 1 more year to go, for our bankruptcy to be finished. It has been 6 years since we filed and were discharged.

We have already starting rebuilding our credit, by getting a secured credit card. We have had it for one year and our credit is excellent on the card.

How much longer would we have to wait for a mortgage loan and who can we speak to about mortgages.

Thank you for your time.

Jody

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Your e-mail address is Canadian and I really don’t know anything about Canadian Bankruptcy Law. I don’t understand what you mean by having one more year for your bankruptcy to be finished, even though you received a discharge 6 years ago.

If you have excellent credit on your secured card, you might find that your credit is good everywhere. Probably the Canadian credit scoring system relies on the same factors it does in the states. However, in Canada the negative effects of a bankruptcy may linger longer.

The major credit bureaus in Canadia are Equifax and Transunion. These are two of the major credit bureaus in the states as well. You can order your credit report online. You have to order your credit score separately but it is available.

Canadian lenders use the FICO or Beacon score. The higher your score, the better your credit. The also use a rating system of R0 to R9. R9 is where you might be, since you did get a bankruptcy discharge.

You first should get a copy of your credit report and score. Assuming the Canadian credit system is similar to the US’s, you want a score of 650 or above to get the lowest rates.

Check your report to see it contains no errors. You should get an explanation of what your score means when you order it.

Then you can contact banks or mortgage brokers and shop for the best deal. Do a search on “Canadian mortgages” and you will come up with over 3.5 million results, so it’s highly likely you will find a willing lender.

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