Are you in the middle of a bankruptcy? This is what’s known as an “undischarged bankrupt” — you’ve filed for bankruptcy but haven’t yet finished paying it off. And you haven’t been released from your legal obligation to repay debts.
When you’ve declared bankruptcy, one of the most important things to do is to start rebuilding your credit.
Filing for bankruptcy leaves you with an R9 credit rating — the worst rating you can have. It tells lenders that you have declared bankruptcy and marks you as a bigger risk. This stays on your credit report for seven years after your bankruptcy has been discharged.
To qualify for more financing and improve your credit score, you need to start rebuilding credit. Most people wait at least until they have been discharged from their bankruptcy to do this. However, this isn’t always the best method.
Did you know that you can actually start rebuilding credit while you are still in a bankruptcy? That’s right, even if you are an undischarged bankrupt, you can still improve your credit score — as long as you know where to go.
In the GTA, Prudent Financial is the only lender that works with undischarged bankrupts to help rebuild credit before the bankruptcy is discharged.
Here’s how it works:
If you live in Toronto, the GTA, or Ontario, you can get a fast, same-day loan at whatever stage of bankruptcy you’re in — after bankruptcy, during bankruptcy, and even at the beginning of bankruptcy.
When you file for bankruptcy, your credit score takes a big hit. But in many cases, the credit scores of people who declare bankruptcy were already bruised due to problem debt.
When you file for bankruptcy, that problem debt is dealt with, but you are still left with the bad credit score, plus the additional R9 rating.
While there is nothing you can do about the R9 rating, you can start working on the actual score part of your credit score.
Improving your credit score is done primarily through:
- Dealing with problem debt and
- Re-establishing good payment and credit habits.
The problem debt has already been handled through the bankruptcy. So now is the time to start re-establishing good credit habits.
How can you do this?
- Pay all bills on time and in full.
- Take out new credit from a lender that reports to the Canadian credit bureaus and repay it on time and in full. This proves that you can handle financing responsibly.
The issue is that many lenders will not lend to people who are undischarged from bankruptcy. But Prudent is different. Because we are an equity lender, credit scores matter less. We lend based mainly on equity available in your assets – such as a home or paid-off vehicle.
If you qualify for a bankruptcy loan from Prudent, you can start proving good credit habits straight away — even before you are discharged. This will help improve your credit score so by the time the R9 rating is taken off, you’ll be in good credit standing again.
Credit during and after bankruptcy is possible… and we can help! Get in touch today to see if you qualify for a bankruptcy loan from Prudent Financial Services.
Call 1-888-852-7647 or learn more at https://www.prudentfinancial.net/bankruptcy-and-proposal-loans/.