We understand that many people want to re-establish their credit as quickly as possible after bankruptcy or a consumer proposal. However, there are no easy or quick fixes to repairing your credit.
There are companies who will offer to help you improve your credit score for a fee. While, the sales pitch varies, they may:
- Offer to set you up with a credit repair program
- Offer to loan you money which will be reported on your credit report
- Offer to loan you money to ‘purchase’ a GIC which they will keep until you make all the payments
- Offer to sell you a credit repair tool kit for a fee and say they will report the payments to the credit bureau
In general, we do not recommend these programs. The Toronto Star recently wrote an article about how these credit fix programs often result in individuals taking on high-interest debt. We also reviewed a similar credit repair ‘savings’ program which we found to be very costly considering the potential upside.