It is only natural to lose hope after you have filed for a consumer proposal. Many people worry about getting the credit again, and believe that it will never happen. But it is all a myth. You can get a credit card, a home, or even a car after you have gone through the process of a consumer proposal. When you are done repaying your debts, and have met all the requirements of the proposal, you are also officially debt-freehand therefore, responsible enough not to repeat the same mistakes again.

After you have paid back the debts, the credit bureau will be informed about it, and strike the credit rating to approximately R7. This rating will get upgraded to R1 after the duration of three years. An individual also cannot get a credit card until they have repaid the loan and built up their credit. But below are the steps which will facilitate you in rebuilding your credit after you have completed the consumer proposal debt payment.

1.     Secured Credit Card

The first step towards rebuilding is getting a secured credit card. The card is called so because the person has to pay around 10 – 100% of the amount before getting that card. That money acts as a protection in times when the individual is not able to repay the amount again. Additionally, when planning on getting a secured credit card, apply for it at places where you haven’t before, and which are not in your repayment plan proposal. Also make sure to apply for a real credit card and not a pre-paid one. You can get 3 or more of such cards and also keep it at good standing to portray that you are responsible enough now to pay off the money.

2.     Bill Payment on Time

As mentioned above, paying bills on time is essential. If you fall behind, it will have a negative impact on the credit ratings. So pay bills before the due date or on time and improve the credit ratings. Since the reports regarding the credit information is sent to the bureau on a monthly basis, you can use this as leverage by maintaining excellent credit rating.

3.     Low Balances Owing

The debts on your card should be low, which means you must not spend a lot. The estimated of 30% or less of the total credit should be your owing balance. Furthermore, ensure that you are paying back the entire amount every month. If not, make certain that you are repaying at least the minimum amount.

4.     Stay in the Credit Limit

Every credit card comes with a credit limit, which is why it is important to stay in that limit or else you can get in trouble with the penalties thrown at you by the creditors. Therefore, this is a deal breaker and the most important rule to follow.

5.     Stay on a Budget

In the start of every month, plan a budget and stick to it. You need to keep a check on the money you are getting and the place where you are spending it. This will also help you in recognizing the areas where you tend to overspend, and the additional taxes.

6.     Keep a Check on Utility Bills

Many times, people ignore utility and phone bills. However, these are the firms that don’t waste time in reporting such incidents. So secure your credit rating and pay the cellphone and utility bills in a timely manner.

If you need further guidance regarding rebuilding of the credit, you can contact counselors present in your area and get the help you need!