The fact that you have declared bankruptcy stays on your credit report for 6 to 7 years (depending on the province or territory you live in). (See the Financial Consumer Agency of Canada's Understanding Your Credit Report and Credit Score for details.)
There is nothing you can do to erase this from your credit report. If any person or company says they can, they're lying. However, you can do some credit repair that will increase your chances of getting credit.
Here are some tips on how to repair bad credit.
1. Open a savings account and make regular deposits over a period of time.
2. Establish a relationship with your banker/ loans officer. Tell him or her that you are working on credit repair and once your relationship is established, take out a small loan using the savings account as collateral. Pay the loan back promptly.
3. Apply for a credit card. You should be able to get one with a low limit, using your savings account as collateral. Once you get one, use it regularly and pay your credit card balances on time.
4. Do not make a big batch of credit applications all at once when you're working on credit repair. Canada's Office of Consumer Affairs (OCA) advises that having too many potential lenders ask about your credit in a short period of time may have a negative effect on your credit score.
5. Try to keep your credit card balance well below the limit. The higher your balance, the more impact it has on your credit score, says the OCA.
The best way to repair bad credit is to establish a record as a reliable payer of debts. So if you can get started with one loan and one credit card, you can "prove" that you're the kind of debtor who can manage your finances.
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