A good credit rating means you are more likely to be approved for credit at a much lower rate. Lenders want to loan money, but at the same time they want to be repaid. If you have made some debt mistakes in the past, lenders may worry that you are still a bad credit risk. The good news is you can change their perception!
Having good credit is a byproduct of managing debt wisely. It is a matter of having creditors believe that you have re-established a positive record of borrowing and repaying money.
Good credit also means that you don’t owe more money than you can repay. If you owe too much money relative to your income, lenders know there is a high risk that you will be unable to make your payments.
IN SUMMARY, GOOD CREDIT MEANS:
- HAVING A GOOD HISTORY OF BORROWING AND REPAYING CREDIT;
- CARRYING THE RIGHT AMOUNT AND THE RIGHT TYPES OF CREDIT GIVEN YOUR INCOME AND THE ASSETS YOU OWN.
Getting a car loan, mortgage or unsecured line of credit after bankruptcy or a proposal is possible, it is just a matter of showing lenders that you look like someone who can manage credit responsibly. Bankruptcy or a consumer proposal eliminates your debt which gives you a clean slate to work with. Now your job is to establish a new history of good credit.