How long does consumer proposal affect credit?

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A consumer proposal will appear on your credit report for up to six years from filing or three years after completion, whichever is shorter, affecting credit score with an R7 rating. While this is a temporary setback, it’s just a manageable road bump on your financial path.

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Consumer Proposal Duration Question

How long does consumer proposal affect credit? How long does a consumer proposal typically affect your credit score in Canada?

From: Anonymous Question
Location: Richmond Hill, Ontario (ON)
Category: consumer proposal

Consumer Proposal Duration Answer

When you file a consumer proposal, it’s going to make its mark on your credit report, hanging out there for up to six years from when you file or three years after you’ve ticked all the boxes and it’s completed—whichever is the shorter stint. This little note will pop up in both the legal or public records area and alongside your personal credit accounts, letting everyone know those debts are part of the proposal. Oh, and during this time, your credit score gets tagged with an R7 rating. Don’t worry, though—it’s not the end of the world, just a temporary road bump on your credit journey!

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

A consumer proposal typically affects your credit score in Canada for up to three years from the date the proposal is accepted. This is outlined in the Bankruptcy and Insolvency Act, specifically in the section related to consumer proposals. After the completion of the proposal, the record of the proposal remains on your credit report for an additional two years. Therefore, the total duration that a consumer proposal impacts your credit is five years—three years during the proposal period and two additional years afterward, provided the proposal is successfully completed.

From: OSB Helper

Related Questions to Credit Report Impact

Here are the top 5 most frequently asked questions related to how long a consumer proposal affects credit, based on common concerns and search trends:

1. How long does a consumer proposal stay on my credit report?

• A consumer proposal stays on your credit report for up to six years from the date you file, or three years after you complete the proposal, whichever is sooner[1][5].

2. How does a consumer proposal affect my credit score immediately?

• Filing a consumer proposal can cause a significant drop in your credit score right away[3][5].

3. Can I get new loans or credit cards while in a consumer proposal?

• It is possible to get new loans or credit cards, but options may be limited, and you may face higher interest rates or fees[1][5].

4. How long after completing a consumer proposal can I start rebuilding my credit?

• You can start rebuilding your credit while still in the consumer proposal, and significant improvement can be seen within 2-3 years after completion[1][5].

5. What credit rating is associated with a consumer proposal on my credit report?

• Debts in a consumer proposal are coded as R7 on your credit report[1][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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