I was under Debt Review for a year and managed to pay off all my accounts and clear my name. I have been debt free and cleared for almost 2 months. I am trying to rebuild my credit score BUT no bank or any other credit provider wants to help me.
I tried to get a clothing account…. declined.
A small loan…. declined.
How do I start over if no one is willing to give me a chance to rebuild my credit score?
Thank you for the question.
Once the clearance certificate is issued, Credit Bureaus have 5 working days in which they must expunge from their records any information pertaining to the fact that you were subject to a debt review.
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 always suggest waiting at least 3 months before applying for new credit.
Pull your credit report, check your credit score and payment history. If there are any discrepancies, log a dispute with that credit bureau. If there is a specific creditor you are having trouble with you can log a dispute with the Credit Ombud as well.
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 are also required to remove those records. If they do decline your credit application, you have a right to know exactly why they declined it.
Hope the information was useful.