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Credit Help

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How can I rebuild my credit in Ontario Canada after a bad credit rating?

If you can’t get a personal or vehicle loan in Ontario, lenders are probably seeing bad borrowing history on your credit report, such as late and missed payments on credit cards and bills, which they get from a credit bureau such as Equifax. To get any significant credit in Ontario nowadays, you need a good borrowing history where bills and loans are paid on time. Our goal on is not only to help Canadians get approved for car loans with bad credit or bankruptcy, but to provide free information on how to improve one’s credit score and qualify for lower interest rates on vehicle financing as well as home mortgage loans.

We will link to various online resources such as businesses that specialize in helping people rebuild their credit, establishing good credit ratings. Not everyone is aware that getting a car loan and making vehicle payments on time is one way to rebuild credit scores. If you currently do not know your credit score, then experts recommend pulling your credit report and reviewing any issues of incorrect credit reporting.

A good credit report usually shows:

  •  A variety of lenders have given you credit and loans over several years.
  • You have always made your payments on time (with possible rare exceptions).
  • You have borrowed to contribute to one or more Ontario Canada RRSPs, showing that you are planning for your financial future.

In other words, you have control of your personal finances, and reliably honour your obligations

A bad credit report usually shows:

  •  Some lenders have given you credit and/or loans.
  • You have frequently and increasingly failed to make your payments on time.
  • You have several credit cards, all maxed out at their limits.
  • Your borrowing is only for short-term purposes, such as living expenses or household goods, not for longer-term benefit such as RRSPs.
  • You may have been previously bankrupt, or had a consumer proposal on your record, to get rid of debts without repaying.

In other words, your own finances are a bit out of control, and Canadian lenders cannot trust you to repay as agreed upon.

Borrowing money in Canada is necessary for most people to live an active and productive, such as buying a home or car. To do so, it is not enough to have a good credit report with no bad history, but no good history either. To borrow for major purchases such as houses and vehicles, you need at least a good credit history.

Therefore, to get financing of any size, whether a car loan, personal loan or home loan, you must:

  •  Not be in bankruptcy
  • Get the bad borrowing history removed from your credit report
  • Create some good borrowing history by paying on agreed dates

Bottom line, in order to know where you stand with your credit, you must first get a copy of your credit report, and review it carefully by yourself, or hire a credit repair specialist to assist you.

More About North American Credit History and Credit Reports

Credit history or credit reports in many North American countries is a negative record of an individual’s or business’s past borrowing and repaying record, including information about late payments on bills, mortgages, car loans and bankruptcy.
In Canada for example, when a client fills out an application for credit from banks such as CIBC, Royal Bank, TD Canada Trust, BMO or Scotia Bank, stores or credit card companies, their information is sent to a credit bureau such as Equifax. Credit bureaus such as Equifax and TransUnion match the name, address and other identifying information on the credit applicant with information retained by the bureau in its files.

Canadian Lenders prefer to see consumer debt obligations paid regularly and on time as agreed and therefore focus particularly on missed payments and may not, for example, consider an overpayment as an offset for a missed payment.