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If you’ve just filed for bankruptcy, rebuilding credit may be on your mind. The good news is that you don’t have to wait long.

In fact, when it comes to rebuilding credit after bankruptcy, the sooner you start, the better.

Believe it or not, you can actually start credit repair while you are still undischarged. The secret is to look at the methods you use to rebuild that credit.

Although the bankruptcy R9 rating stays on your credit report for seven years after discharge, you can start establishing a good credit history well before then — right away in fact.

Rebuilding credit means borrowing enough money to prove credit responsibility. For example, you might take out a personal loan and repay the loan on time and in full every month. If the lender reports to the national credit bureaus, this will help establish good credit habits.

This can be achieved through having more than one credit product, too. So, for instance, if you have a secured credit card and take out a personal loan, so long as you maintain good payment habits for both products, they will help repair your credit.

How you manage the credit product is key. If you take out a loan and don’t repay it in full and on time every month, then it won’t help your credit score.

If you take out a new credit card, even a secured one, and start accumulating debt that you can’t pay off, then, again, it won’t help you.

The secret to rebuilding credit, even as an undischarged bankrupt, is proving that you can be responsible with credit products. This means practicing responsible habits, such as:

  • Repaying what you owe in full every month.
  • Repaying what you owe on time every month.
  • Not taking out too many credit products.
  • Dealing with existing debt (the bankruptcy should help with this).
  • Don’t let your accounts get too close to the limit.

You will also want to make sure that you are working with a lender who reports to the national credit bureaus. Some lenders, such as payday loans, don’t report to the Canadian credit agencies, meaning even if you practice good credit habits, it won’t matter.

Some lenders, however, report to the Canadian credit agencies and offer loans to undischarged bankruptcies. Prudent Financial is one of those lenders.

You may be eligible for a Prudent loan if:

  • You have been employed full-time for a minimum of six months (based on a previous history of consistent employment) in a workplace of 10 people or more.
  • You have computerized pay stub showing all deductions.
  • You earn $18/hr. minimum and/or $38,000 annually.

If you are self-employed or not sure if you qualify, call our loan officers for a free consultation.

Learn more about Prudent’s loans for rebuilding credit after bankruptcy today. Call 1-888-852-7647 or visit

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