I’ll be settling all my debt besides my home loan over the next 3 – 5 months. How long after I settle my account and exit debt review can I apply for credit again?
Thank you for your question.
In theory, you should be able to apply for credit again within a week of receiving your clearance certificate. In our experience though, the latter is not true. Credit Bureaus take longer than that to get your record cleared. We suggest waiting for 3 months before applying for new credit.
Pull your credit report about one month after you have been issued with the clearance certificate. Check your credit score and payment history. If there are any discrepancies, take it up with the credit bureau or contact your debt counsellor to help you sort it out. We would suggest that you make sure your credit profile and credit score is good before applying for new credit. Keep in mind that every time you apply for credit and get declined, it affects your credit score negatively.
Also keep in mind that even though your credit score might be good, credit providers might still have a flag indicating your history on their internal systems. They must also remove those records. It always remains the decision of the credit provider whether or not they want to extend credit to you. If they do decline your credit application, you have a right to know exactly why they declined it.
Hope the information was useful