Completing a consumer proposal is a significant financial achievement. You negotiated with your creditors, kept up with your payments, and resolved debts that might otherwise have led to bankruptcy. Now it is time to rebuild your credit and move forward. Here is how to do it.
What Your Credit Report Looks Like After a Consumer Proposal
Once you complete your consumer proposal, the accounts included in the proposal should all be marked as R7 (regular payments under a consolidation order) with a zero balance. The consumer proposal notation in the public records section of your Equifax Canada and TransUnion Canada reports remains for 3 years after the date of your final payment.
Your credit score at the completion of a proposal is typically in the 500 to 580 range, depending on what your credit file looked like before and during the proposal.
Realistic Recovery Timeline
Month 1 to 3 post-completion: Open a secured credit card and begin making on-time payments. Score starts recovering from its low point.
Month 6 to 12 post-completion: With consistent positive payment history, score can reach 600 to 640. Some credit products become available.
Year 2 post-completion: Score can reach 650 to 680 with continued discipline. Alternative mortgage lenders often work at this level.
Year 3 post-completion: The consumer proposal falls off your credit report. Traditional bank mortgages become realistic with a rebuilt profile.
Step-by-Step Action Plan
First, verify your credit reports at equifax.ca and transunion.ca. All accounts in the proposal should show zero balance. Any account still showing an active balance or active collection status is an error that must be disputed.
Second, apply for a secured credit card. Use it only for planned purchases you would make anyway, and pay the full balance before the due date every month.
Third, keep your utilization below 30% at all times.
Fourth, after 12 months of perfect history, apply for one additional credit product to diversify your credit mix.
Fifth, track both your Equifax and TransUnion scores monthly. Free score monitoring is available through many Canadian financial apps.
When Professional Help Makes Sense
Immediately after proposal completion, a professional review of your credit reports can identify errors in how the proposal accounts are reported. Errors at this stage, if corrected, can accelerate your rebuild significantly. We also help clients develop a structured credit rebuilding plan based on their specific report.
FAQ
**How long does a consumer proposal stay on my credit report after I finish paying?** Three years from the date of the final payment.
**Can I get a mortgage 2 years after completing a consumer proposal in Canada?** Yes, with many alternative lenders. Traditional banks often require waiting until the proposal is off your report.
**Does completing a consumer proposal early help my credit?** Completing the proposal faster reduces the total time it stays on your report, since the 3-year clock starts from your last payment date.
Call (437) 755-6579 for a free consultation. Serving clients across the GTA with flat fee credit repair services.