Rebuilding credit after a consumer proposal
Quick summary
You can start rebuilding once you meet the terms of your proposal. The basics are paying every bill on time, using less than 30% of your card limit and not applying for credit too often. Next step: see how a secured card builds credit.
Checked November 2, 2026. Main source: Financial Consumer Agency of Canada, Improving your credit score. Checked November 2, 2026.. See all 2 sources.
Key facts
- Credit use
- Under 30% of your card limit
- Source: FCAC, Improving your credit score
- Payments
- Pay every bill on time
- Source: FCAC, Improving your credit score
- Applications
- Do not apply for credit too often
- Source: FCAC, Improving your credit score
When you can start
The Office of the Superintendent of Bankruptcy says your credit rating is affected, but you can start rebuilding once you meet the terms of the proposal.
The proposal still shows on your credit report for a set time, so lenders can see it. See how long that is in our guide.
Steps to follow
- Get your free credit report from both bureaus and check that the proposal and every account are listed correctly.
- Pay every bill by its due date. If you cannot pay in full, pay at least the minimum.
- Keep your card balance under 30% of your limit. A $5,000 limit with $1,000 used is 20%.
- Do not go over your limit.
- Keep older accounts open if they have no annual fee and are easy to manage. Use them now and then.
- Apply for credit only when you need it. Many applications close together can hurt.
- For a car loan or mortgage, compare lenders within a 2 week period. The bureaus count that as 1 inquiry.
- Borrow only what you can pay back.
The steps after the first one come from the Financial Consumer Agency of Canada, Improving your credit score. Checked November 2, 2026.
Tools that can help
A secured credit card or a credit builder loan can give you a payment history to build on. Ask the lender whether it reports to Equifax and TransUnion before you apply.
Questions people ask
Can I rebuild credit after a consumer proposal?
Yes. The Office of the Superintendent of Bankruptcy says you can start rebuilding once you meet the terms of the proposal.
How much of my credit limit should I use?
The Financial Consumer Agency of Canada suggests using less than 30% of your total credit limit.
Will several applications hurt my credit?
Many applications close together can hurt. For a car loan or mortgage, comparing lenders within 2 weeks counts as 1 inquiry.
Should I close old accounts?
Keep older accounts open if they have no annual fee and are easy to manage. Use them now and then so they stay active.