While you’ve labored onerous to finish a shopper proposal and get again in your monetary ft, it’s irritating to nonetheless see remnants of it lingering in your credit score report. We hear this on a regular basis, particularly when somebody is making ready for a mortgage renewal or making use of for brand spanking new credit score.
So let’s clear up what ought to be there, what shouldn’t, and what to do in case your credit score report hasn’t caught up together with your actuality.
How lengthy does a shopper proposal keep in your credit score report in Canada?
Most shopper proposals are structured to be 5 years in length. Usually with a hard and fast fee quantity over sixty months.
Equifax and TransUnion deal with shopper proposals a bit otherwise, however the common rule in Ontario is:
- Equifax: A shopper proposal is eliminated three years after the date of completion or 6 years from the submitting date, whichever comes first.
- TransUnion: The proposal and associated accounts keep in your file for 3 years after completion or 6 years from the date you defaulted on the debt, whichever comes first.
Meaning in case your proposal was accomplished early, say, in early 2022, it ought to have been absolutely cleared off (purged from) your report by early 2025 on the newest. That is true even for those who filed your proposal solely months earlier than paying it off utterly.
Purging guidelines might differ barely throughout provinces and territories, so please test instantly with the credit score reporting businesses to study their guidelines.
What ought to be eliminated, and what ought to stay?
Right here’s the necessary half. When your shopper proposal is cleared out of your credit score report, it ought to disappear from each the general public data part and from every particular person account that was included within the proposal.
For those who’re nonetheless seeing account notes that say issues like:
“Account closed, included in proposal”
“Written off as a part of a proposal”
though the proposal itself not seems, these notes are stale, and albeit, they shouldn’t nonetheless be there.
Why these leftover notes nonetheless matter
Even when your balances are exhibiting as $0 and the accounts are closed, these damaging remarks can nonetheless affect how lenders see you.
Mortgage lenders specifically use Equifax information closely, and if their underwriter sees a bunch of charge-off-style language, like “settled by proposal” or “included in proposal”, they’ll usually deal with you such as you’re nonetheless within the restoration section, though you’ve achieved the onerous work and moved on.
Worse, for those who apply for credit score and are denied, primarily based on that outdated data, that rejection may injury your profile additional. You don’t wish to be penalized once more for one thing you already resolved.
What you need to do subsequent
For those who’ve accomplished your shopper proposal and sufficient time has handed, however you’re nonetheless seeing previous notes in your credit score report, it’s time to wash it up.
Right here’s what we suggest:
- Get a present copy of your credit score stories from each Equifax and TransUnion. Ensure you’re reviewing the complete stories, not simply the patron summaries.
- Flag all accounts nonetheless exhibiting proposal-related feedback. Take screenshots or spotlight them, these are what you’ll dispute.
- Don’t apply for any new credit score or mortgages till these are corrected. A untimely software may result in a rejection, and that rejection can be seen to future lenders.
- Work with knowledgeable to dispute the gadgets.
For instance, Richard Moxley, a CMT contributor, is one in all Canada’s most educated consultants on credit score file accuracy and disputes. He is aware of the right way to cope with Equifax and TransUnion instantly and successfully.
The underside line
As soon as your shopper proposal is behind you and sufficient time has handed, your credit score report ought to mirror a clear slate. If it doesn’t, that’s not your fault, however it’s your accountability to repair it earlier than shifting forward with main monetary steps like mortgage renewals or new purposes.
Don’t guess your manner by this half. A couple of lingering notes can value you 1000’s in greater charges, or perhaps a flat-out decline. Get your credit score file correctly up to date, and also you’ll be in a a lot stronger place to maneuver ahead with confidence.
We beforehand wrote about how owners in shopper proposals would possibly repay their proposal forward of the customary 5 years.
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Final modified: August 25, 2025
