1. Get a Secured Credit Card. The fastest, cheapest and easiest way to establish a credit history is with a secured credit card. Since there’s no risk to the lender because you’ve put up the cash to cover your balance, secured cards are great for new borrowers or people trying to re-establish credit after a bankruptcy.

Lenders usually want twice the credit card limit. So if you want a $500 credit limit, you’ll have to ante up $1,000. Once you’ve established your ability to manage the card – anywhere from six months to a year – you can ask for the security requirement to be dropped and your deposit returned.

2. Get a gas or department store card. Gas or department store credit cards are often easier to get and can be good ways to establish credit. You must pay your bills in full and on time because the interest rates on these cards are often astronomical. But as long as you don’t miss a payment – which you never will, right? – it makes no difference what the interest rate is. Use these cards wisely and they can be a great toe-hold.

3. Borrow for an RRSP. Borrowing money to contribute to an RRSP is a great way to establish a credit history. While the RRSP cannot officially be used as collateral for the loan, lenders know where to find their money so approvals come more easily and the interest rate won’t be horrendous. Make sure you only borrow as much as you can afford to repay in six months. How much you borrow doesn’t mean much; repaying the loan quickly without a misstep does. Don’t let anyone talk you into more. Once the six months are up, use the amount you were using to repay the loan as your month retirement savings contribution. Now you’re building up your assets, which will be good for your credit history too.

If you or someone you know has been through an emotional Bankruptcy in Canada, there is still a second chance to get back on your feet. After all, we are human and sometimes bad things can happen to good people.

1. Get Discharged ASAP – The sooner you get discharged from your Bankruptcy, the sooner you can start to rebuild your credit.
2. Check Credit after Discharge – After you have been discharged from Bankruptcy, check your credit bureau report from TransUnion Canada and Equifax Canada to make sure that all the debts that were included in your Bankruptcy were also updated, included and paid off on your credit bureau.
3. Re-Build your Credit ASAP –Rebuilding your credit after your Bankruptcy as soon as possible is the best thing you can do to bounce back quickly. The first step is to apply for a couple of Secured Credit Cards, you can start with one – but we suggest you apply for at least two or more from different lending institutions. Here are a few of these lending institutions that have helped our clients bounce back quickly and successfully: Capital One, Home Trust and Peoples Trust.
4. Pay Outstanding Taxes to Revenue Canada –Even though you have been discharged from your Bankruptcy, the lenders will still want to see that you have paid any outstanding taxes to Revenue Canada. The lender will request tax returns from the previous year showing that the income taxes were paid in full.
5. Apply for an RRSP Loan – An RRSP loan is secured by the RRSP that is invested and is another great way to rebuild your credit quickly. Visit your local bank or credit union and talk to them about applying for an RRSP Loan. If you’re a First Home Buyer in Canada, you will be able to withdraw up to $30,000 from your RRSP to be used towards a down payment of a home in Canada, but only once the loan is paid off.
6. Keep all Bankruptcy Documents – Even though the Bankruptcy has been discharged, the lender which you are applying for mortgage may ask you to provide a copy of the Statement of Discharge.  Along with copies of the Bankruptcy papers showing all the creditors, accounts and balances that were included in the Bankruptcy. Keep these documents in a safe place as you will very like be asked to provide these documents at time of application.
7. Start Saving – The higher your net worth, the stronger your application will be when you apply for mortgage financing. Lenders will choose your mortgage application over others if you have a substantial savings, good strong income and job stability and re-established credit after being discharged from Bankruptcy.