R7 vs R9 Credit Rating: What They Mean for Your Future

R7 and R9 represent serious financial distress, but with crucial differences in recovery time. An R7 rating means you entered a special payment arrangement—typically a consumer proposal or debt management plan—where you make reduced, negotiated payments to creditors. An R9 is the lowest possible rating, indicating complete default: bankruptcy, debt written off to collections, or accounts abandoned. While R9 is technically worse, both block prime lenders for 2-3 years. B-lenders approve 40-50% of R7 applicants at 12 months post-completion versus 20-30% for R9. The key difference: R7 clears faster (3 years after completion or 6 years from filing) and lenders view it more favorably during mortgage and loan applications. You can start rebuilding credit the day you file or discharge, regardless of which rating you carry.

What R7 and R9 Credit Ratings Actually Mean in Canada

R7 = special payment arrangement. You filed a consumer proposal, enrolled in orderly payment of debts (OPD), or entered a debt management plan through non-profit credit counseling. You negotiated reduced or structured payments but didn’t abandon the debt. This appears on revolving credit accounts (credit cards, lines of credit) with the “R” prefix.

R9 = complete default. Debt written off to collections, bankruptcy declared, or you moved without forwarding address. Creditors recovered nothing or nearly nothing. This is the floor—no lower rating exists. Same “R” prefix for revolving accounts; “I9” for installment loans (car payments, personal loans) in bankruptcy.

Your credit score drops to the 450-550 range during an active proposal (R7). Bankruptcy (R9) can tank you to 300-500. Check your current credit score for free with Borrowell to see where you stand. The difference matters less than you think initially—both ratings trigger automatic declines at major banks (RBC, TD, Scotiabank, BMO, CIBC) for 18-24 months minimum.

Lenders treat R7 and R9 almost identically for the first two years. Under 5% of prime lenders approve any credit within 24 months of either rating. B-lenders (alternative lenders) represent your only access to mortgages, auto loans, and unsecured credit during this window. The approval gap widens after year two—that’s when R7’s faster recovery matters.

120,000 Canadians filed consumer proposals in 2024. 95,000 filed bankruptcy. You’re not alone in this category, and the path back exists. The Office of the Superintendent of Bankruptcy tracks every filing—these are audited, verifiable numbers showing how common debt relief has become.

The Complete Canadian Credit Rating Scale (R0-R9)

Note: R6 is rarely used by Canadian credit bureaus and has no standard definition.

Note on prefixes: “R” applies to revolving credit (credit cards, lines of credit). “I” marks installment loans (car loans, mortgages)—I7 for loans in proposal, I9 for loans in bankruptcy. “O” covers open credit (cell phones, utilities). Same numeric scale applies across all prefixes.

Provincial variation: TransUnion extends R9 bankruptcy reporting to 7 years in Ontario, Quebec, Newfoundland and Labrador, and Prince Edward Island. All other provinces get 6 years. Equifax uses 6 years nationwide. Second bankruptcy: 14 years from discharge for both bankruptcies on both bureaus.

This table represents the definitive Canadian credit rating structure used by Equifax Canada and TransUnion Canada. Lenders reference this exact scale when evaluating your file.

How Long R7 and R9 Ratings Stay on Your Credit Report

R7 Timeline Breakdown

3 years after final payment OR 6 years from filing—whichever comes first. This dual timeline gives you control over recovery speed.

File January 2023, complete payments January 2026 (3 years). Your R7 clears January 2029. That’s three years after completion—six years total.

File January 2023, complete payments December 2027 (nearly 5 years). Your R7 clears January 2029—six years from filing, not 2030.

Pay off your proposal in 2 years and you’ll carry the R7 for 5 years total (2 years payments + 3 years reporting). Stretch payments to 5 years and it clears at year 6 regardless. The faster you complete payments, the faster you return to normal credit access.

Average consumer proposal completion time: 4.2 years based on 2024 Office of the Superintendent of Bankruptcy data. Most proposals structure 48-60 monthly payments. Lump sum payoff or accelerated payments cut this timeline significantly.

Every year you shave off completion saves you $2,000-$5,000 in higher interest costs. Subprime credit cards charge 19-29% vs. prime cards at 12-19%. Auto loans run 9-14% subprime vs. 5-8% near-prime. That differential compounds across all credit you use during recovery.

R9 Timeline Breakdown

6 years after discharge (Equifax) or 6-7 years after discharge (TransUnion). The clock starts at discharge date, not filing date. This matters because bankruptcy takes time to complete.

First-time bankruptcy discharge typically requires 9 months with no dependents, no surplus income, and full cooperation with duties. Surplus income triggers extended terms—21 months common. Opposition from creditors or trustee can extend this to 24-36 months in contested cases.

File bankruptcy March 2024, discharged December 2024 (9 months). Equifax clears December 2030 (6 years post-discharge). TransUnion (Ontario) clears December 2031 (7 years).

Second bankruptcy: 14 years from discharge for both bankruptcies. Both the first and second bankruptcy get “brought back” onto your report when you file again. This is catastrophic for credit access—you’ll spend your 30s or 40s locked out of prime lending if you file twice in your 20s or 30s.

Collections without bankruptcy (also R9): 6 years from date of last activity or write-off date, whichever is later. Making a payment on old collections resets this clock—never pay old collections without negotiating removal first. Learn more about how collections show up on your credit report and how long they last.

Each extra year of R7/R9 costs you $2,000-$5,000 in higher interest on credit cards, auto loans, and mortgages during rebuilding. The rate differential between subprime (where you’re stuck) and near-prime (where you’re heading) compounds across every dollar you borrow.

Which Is Worse: R7 or R9?

Technical answer: R9 is worse. It signals you abandoned debt entirely instead of negotiating repayment. Bankruptcy or collections write-off both carry more stigma than structured repayment through a proposal.

Practical reality: Lenders treat them almost identically for 24-36 months. Both trigger automatic declines at all five major banks for unsecured credit. Both force you into the subprime/near-prime lender market. Both require secured credit cards as your primary rebuilding tool initially.

Reddit forums and credit rebuilding communities report identical secured card offers for R7 and R9 users: Capital One Guaranteed Mastercard, Home Trust Secured Visa, CTFS Triangle Mastercard. Same $300-$1,000 limits, same $59-$79 annual fees, same 19.99% interest rates. The market doesn’t differentiate at the bottom tier.

Where R7 Wins

Faster credit report clearance. Pay off your proposal in 2-3 years and you’re looking at 5-6 years total R7 duration. Bankruptcy minimum is 6-7 years from discharge, and you can’t accelerate discharge beyond 9 months for first-time filers.

Better B-lender mortgage approval rates. 40-50% of R7 applicants get approved 12 months after proposal completion if they have 20-25% down, two re-established tradelines with perfect 12-month history, and stable income. R9 applicants at the same timeline see 20-30% approval rates—nearly half the success rate.

By 24 months post-discharge, R7 approval climbs to 70-80% while R9 reaches 50-60%. That gap represents real access to housing.

No “bankruptcy” on background checks. Some employers check credit reports for finance, government, or cash-handling roles. Consumer proposal (R7) raises fewer red flags than bankruptcy (R9). Landlords also view proposals more favorably—you structured repayment instead of walking away.

Where R9 Costs More

Absolute floor for credit scores. Bankruptcy drops scores to 300-400 range regularly. Proposals typically bottom at 450-550. That 100-150 point gap delays your climb back to 650+ (the threshold where near-prime offers appear).

Longer wait for prime lender eligibility. A-lenders (major banks) consider R7 applicants 24-36 months after full clearance from credit report. R9 applicants wait 36-60 months post-discharge. That’s 1-2 extra years locked out of competitive rates.

Second bankruptcy = 14-year disaster. If you file bankruptcy twice, both bankruptcies report for 14 years from your second discharge. R7 has no such multiplier—each proposal reports independently on its own 3/6-year timeline.

Average interest rate premium during rebuilding: R7 carries 2.5-4% above prime for first 24 months. R9 carries 3-5% above prime. On a $25,000 car loan over 5 years, that’s $1,100 extra interest at 12% (R9) vs. 9% (R7). On a $300,000 mortgage, 1% difference over 5 years = $15,000 extra interest paid.

Real urgency: Every month you delay rebuilding costs you money. Start the day you file or discharge. The interest differential compounds across every credit decision you make for the next 3-5 years.

Not sure which debt relief option saves you the most? Compare consumer proposal vs bankruptcy with personalized debt assessment—see exactly how much you’d pay and how long recovery takes.

How Lenders Actually View R7 and R9 (What You Can Get and When)

Credit Cards

Month 0-6 (during proposal/bankruptcy or immediately after discharge):

• R7: May keep existing cards not included in proposal—rare but possible; apply for secured cards immediately during active proposal
• R9: All pre-bankruptcy cards closed; apply for secured cards the day after discharge
• Options: Capital One Guaranteed Mastercard ($75-$300 limit, $59 annual fee), Home Trust Secured Visa ($500+ deposit equals limit)

Month 6-18:

• Both R7/R9: Secured cards only; limits increase to $500-$1,500 if payments perfect
• Avoid unsecured subprime offers (Credit One-style) charging $150-$300 annual fees for $300-$500 limits—these are traps

Month 18-36:

• R7: Qualify for unsecured subprime cards (Capital One Platinum, CTFS Triangle) with $500-$2,000 limits and 19.99% rates
• R9: Still mostly secured cards; unsecured offers rare until 24+ months, and even then limited to high-fee products

Month 36+:

• R7 (if cleared from report): Near-prime cards accessible if score recovered to 650+; rewards cards possible
• R9: Still rebuilding; near-prime requires score 650+ and full clearance approaching

Average secured card credit limit after 12 months of perfect payments: $1,200-$1,800. This doubles your initial deposit in most cases.

Auto Loans

First 12 months post-discharge:

• Subprime lenders only (Canada Drives, CarLoans.com, dealership in-house financing)
• Expect 12-19% interest rates, $500-$1,500 down payment required, max loan $20,000-$25,000
• Income requirement: $2,500+/month gross, stable employment 6+ months

12-24 months:

• Rates drop to 9-14% if you’ve re-established two credit tradelines with perfect payment history
• B-lenders (credit unions, regional banks) approve with 10-15% down
• Max loan increases to $30,000-$35,000 with stronger income proof

24+ months (R7 potentially cleared):

• Near-prime rates (6-9%) possible if score 650+
• A-lender approval unlikely until 36+ months post-discharge
• Refinancing subprime auto loans becomes viable—save $1,500-$3,000 over remaining term

Typical subprime auto loan: 12.5% APR, 60-72 months, $18,000 average loan, $1,000 down, requires proof of $2,500+ monthly income. Denial rate within 18 months of filing: 65-75% for R7, 75-85% for R9.

Mortgages

During proposal/bankruptcy:

• No mortgage possible until discharge/completion; lenders require full resolution

0-12 months post-discharge:

• B-lenders (alternative mortgage lenders) only
• Requirements: 20-25% down payment (no CMHC insurance with R7/R9)
• You need proof of 12 months re-established credit with two tradelines and perfect payment history
• Lenders want stable income with 2+ years employment history
• Interest rates: 5-8% (prime rate + 2-4%)
• Approval rate: 30-40% for R7, 15-25% for R9

12-24 months post-discharge:

• B-lender approval climbs to 70% (R7) and 50% (R9)
• Rates improve to prime + 1.5-3%
• Some credit unions consider applications if local banking relationship exists

24+ months (R7 may be cleared from report):

• A-lender consideration if R7 fully removed and score 680+
• R9 still blocks A-lenders until 36-48 months post-discharge minimum
• Refinancing B-lender mortgages to prime rates becomes possible

Mortgage down payment reality: B-lenders require 20-25% because CMHC (Canada’s mortgage insurer) won’t insure R7/R9 borrowers. On a $400,000 home, that’s $80,000-$100,000 cash upfront. Compare this to $20,000 (5%) for prime borrowers. This single requirement blocks most R7/R9 individuals from homeownership until they’ve saved aggressively post-discharge.

Start rebuilding immediately. Waiting 6 months = another 6 months stuck with $500 secured card limits and 19% subprime auto loan rates. The cost of delay: $2,000-$5,000 in extra interest over 3 years across all credit you use.

Ready to start rebuilding today? Learn the exact secured cards and credit-builder loans that work for R7/R9 recovery.

The Path from R7/R9 Back to R1 (Rebuilding Timeline)

Month 0-3: Immediate Actions

1. Get your discharge/completion certificate. Consumer proposals issue Certificate of Full Performance; bankruptcy issues Certificate of Discharge. File this permanently—lenders request it for mortgage and large loan applications.

2. Open one secured credit card within 30 days of discharge. Deposit $500-$1,000 (becomes your credit limit). Set up automatic full balance payment monthly. Put one small recurring bill on the card ($10-$20/month)—Netflix, Spotify, or similar. Never carry a balance. This reports positive payment history immediately.

3. Pull credit reports from Equifax and TransUnion. Free access via Borrowell (TransUnion) and Credit Karma (Equifax). Confirm proposal/bankruptcy reports correctly. Check that all included debts show $0 balance and “included in bankruptcy/proposal” notation.

4. Budget $1,000 minimum emergency fund. Prevents credit re-use for surprises. Canadians with $1,000+ emergency savings miss 60% fewer credit payments than those with under $500 saved.

Month 3-12: Establish Foundation

1. Add second credit tradeline by month 6. Options: second secured card OR credit-builder loan (Refresh Financial offers $2,500 loan at $50/month for 24 months—you receive $1,300 back after paying $1,200 total, net cost $100 for 24 months of perfect payment history).

2. Maintain 100% on-time payment record. Set calendar reminders 7 days before due dates. Automate everything possible. One 30-day late payment drops your score 50-80 points and sets rebuilding back 6-12 months.

3. Keep credit utilization under 30%. If your secured card limit is $1,000, never carry balance above $300. Under 10% utilization rebuilds fastest. Pay off full balance monthly to avoid interest while maintaining activity.

4. Check credit reports quarterly. Check your credit report for free with Borrowell to catch errors early—20-30% of Canadian credit reports contain material errors. Common mistakes: debts not marked “included in proposal/bankruptcy,” wrong discharge dates, duplicate accounts. Each error suppresses scores 20-50 points unnecessarily.

5. Resist pre-approval offers for high-fee unsecured cards. Credit One Bank, First Premier, and similar issuers charge $150-$300 annual fees for $300-$500 limits at 29% APR. Your secured card at $59 annual fee performs identically for rebuilding at one-third the cost.

Month 12-24: Build Momentum

1. Request credit limit increases on secured cards. Many issuers (Capital One, Home Trust) auto-increase limits at 12-18 months with perfect payment history. Some convert secured to unsecured and return your deposit—ask at the 18-month mark.

2. Apply for subprime unsecured card if score hits 600+. Capital One Platinum common approval at this stage. Start with one application—multiple inquiries damage scores.

3. Consider small auto loan if needed. Helps diversify credit mix (installment + revolving credit = stronger score). Subprime rates apply (9-14%) but refinancing becomes possible at 24+ months. Only take if genuinely needed—forced debt doesn’t accelerate rebuilding.

4. Prepare for mortgage if planning to buy. Start saving 20-25% down payment aggressively. Document stable income (2+ years same employer or field). Get B-lender pre-approval to understand realistic budget and rates.

Credit score progression with perfect rebuilding: Month 0 (filing/discharge) = 300-550, Month 12 = 550-620, Month 24 = 620-680. Every on-time payment adds 10-15 points in year one, 5-10 points in year two.

Month 24-36+: Transition to Prime

1. R7 likely cleared from report (if proposal completed within 3 years); R9 may still appear for another 2-4 years depending on discharge date.

2. Apply for near-prime credit (rewards cards, lower rates) once score exceeds 650. Competition among lenders increases dramatically at this threshold.

3. Refinance high-interest debts. Subprime auto loan at 13% refinances to 7-9% as credit improves—saves $1,500-$3,000 over remaining term. Credit cards with 19.99% rates get replaced by 12.99% rewards cards.

4. Build toward A-lender eligibility. Major banks require 2-3 years of perfect R1 payment history after R7/R9 clearance. Stay patient—forcing applications too early racks up hard inquiries and denials that delay progress.

Typical score at 36 months with perfect rebuilding: 680-720 if R7 cleared; 620-680 if R9 still reporting. By month 48+, scores reach 720-780+ with all tradelines showing R1 status.

The cost of doing nothing compounds daily. Every month without rebuilding = another month stuck at rock-bottom credit = higher insurance premiums (Ontario bad credit adds $500-$1,200/year to auto insurance), rental application denials (many landlords auto-reject R7/R9), job rejections (some finance and government positions check credit). Immediate action = shortest path to financial normalcy and lowest total cost.

Common Mistakes That Extend R7/R9 Credit Damage

1. Missing payments on new credit during rebuilding. One 30-day late payment = 50-80 point score drop. Recovery takes 6-12 months of perfect payments. This single mistake sets you back half a year minimum. Solution: Automate all payments, set alerts 7 days before due dates, maintain $500+ buffer in checking account.

2. Maxing out secured cards. Using 90-100% of your limit signals risk to credit bureaus even if you pay in full monthly. Keep utilization under 30% always, under 10% for fastest rebuilding. Example: $1,000 limit means keeping balance under $300 at all times, ideally under $100.

3. Applying for too much credit too fast. Each application generates a hard inquiry dropping your score 5-10 points. Multiple inquiries within 6 months flag you as “credit seeking”—lenders interpret this as desperation. Limit applications to 2-3 per year during rebuilding. Strategic timing matters more than volume.

4. Falling for subprime credit card traps. Cards charging $150-$300 annual fees for $300-$500 limits at 29% APR don’t rebuild credit faster than secured cards at $59 annual fee. Credit One Bank and First Premier Bank specifically target R7/R9 individuals with terrible terms. Your secured card performs identically for rebuilding at one-third the cost.

5. Ignoring credit report errors. 20-30% of Canadian credit reports contain material errors. Common mistakes: debts not marked “included in bankruptcy/proposal,” wrong discharge dates, duplicate accounts, old collections re-appearing. Each error suppresses scores 20-50 points unnecessarily. Dispute online via Equifax/TransUnion portals—resolution takes 30-45 days with clear documentation.

6. Closing old accounts after discharge. Any accounts NOT included in your proposal represent positive payment history if they showed R1 status. Keep them open even with zero balance. Closing old R1 accounts reduces average age of credit (15% of your credit score). Only close if annual fees apply and issuer won’t waive them.

7. Taking payday loans during rebuilding. Payday loans don’t report to credit bureaus when paid on time, so they don’t help rebuilding. They only report when you default—then they appear as R9 collections on top of your existing damage. Default rate on payday loans: 35-40% within 12 months. This creates new R9 entries while you’re trying to recover from the first one.

8. Not saving emergency fund. Without $1,000+ buffer, any surprise expense (car repair, medical bill, appliance replacement) forces you back into credit usage or triggers missed payments. Canadians with $1,000+ emergency fund show 60% lower re-default rates than those with under $500 saved.

Real cost of mistakes: One missed payment at month 9 of rebuilding resets your progress to month 3-4 level. That’s an extra 6 months in subprime tier = $1,500-$3,000 additional interest costs on car loans, credit cards, and eventual mortgage. Avoiding these eight mistakes = shortest, cheapest path back to good credit.

R7 vs R9 Impact Beyond Credit Score (Employment, Housing, Insurance)

Employment Background Checks

40-50% of finance and government jobs check credit reports. Positions requiring security clearance (RCMP, CSIS, federal government), roles handling cash or assets (bank teller, accountant, investment advisor), and positions requiring professional bonding all review credit.

R7 (consumer proposal) = less alarming than R9 (bankruptcy). You structured repayment instead of abandoning debt. Most employers accept R7 with brief explanation. R9 bankruptcy may disqualify candidates for positions requiring bonding or security clearance outright. Bonding companies often refuse coverage for individuals with active bankruptcy or recent discharge.

Quebec restricts employer credit checks—employers must demonstrate “serious reason” directly related to job duties. Other provinces allow broader credit screening. Financial services roles face strictest scrutiny regardless of province.

Rental Applications

60-70% of landlords in Toronto, Vancouver, and Calgary check credit reports. R7/R9 ratings trigger rental denials or higher deposits in 55-65% of applications based on 2025 Toronto rental market data.

Standard deposit: first month rent. R7/R9 applicants often face: first month + last month rent upfront, or additional security deposit equivalent to half-month rent. On $2,000/month rent, that’s $4,000 vs. $2,000 standard—double the upfront cash.

Workarounds: Offer 3-6 months rent paid upfront (shows financial stability despite credit history), provide co-signer with good credit, apply with private landlords instead of property management companies (private landlords less likely to run formal credit checks), provide references from previous landlords emphasizing perfect payment history.

Insurance Premiums

Ontario, Alberta, and British Columbia allow auto insurers to use credit-based insurance scores. Bad credit (R7/R9 range) increases premiums 20-40% vs. good credit for identical coverage and driving record.

Example: Ontario driver, age 35, clean driving record, Toronto postal code—$1,800/year with good credit vs. $2,400-$2,700/year with R7/R9 credit. That’s $600-$900/year extra, every year, until credit fully recovers. Over 5 years of rebuilding = $3,000-$4,500 total additional cost.

Home insurance less affected by credit scores, but multi-product discounts (bundling home + auto) get denied if credit prevents auto insurance approval or forces you into high-risk pool.

Professional Licensing

Regulated professions checking credit include: Certified Financial Planners (CFP), insurance agents, mortgage brokers, real estate agents, investment advisors, and some accounting designations.

Bankruptcy (R9) requires disclosure on license applications. Licensing bodies assess trustworthiness and financial responsibility. Bankruptcy denial/delay rate: 15-25% for CFP and mortgage broker licenses. Consumer proposal (R7) rarely causes license denial—viewed as responsible debt resolution rather than abandonment. Denial rate under 5%.

Active bankruptcy may trigger license suspension for existing license holders in financial services. Trustees and regulators coordinate to ensure compliance.

Business Credit and Financing

Personal R7/R9 blocks personal guarantees on business loans, leases, and credit lines. Most small business financing requires owner personal guarantee—lenders check personal credit even when lending to corporation.

Starting new business with R7/R9 means: no business credit card access, no equipment financing or leasing, no line of credit for working capital, cash flow or investor funding only. This forces bootstrap operations or outside capital partnerships where you surrender equity for funding you’d otherwise access via credit.

Rebuilding personal credit to 680+ reopens business financing options. Until then, business growth relies entirely on retained earnings and investor capital.

Hidden costs compound fast. $700/year extra insurance + $2,000 higher rental deposits every move + missed job opportunity in finance (potential $60,000+ salary) = tens of thousands in lost opportunity over 5 years. Rebuilding credit isn’t just about loans—it’s about preserving life options and minimizing financial friction across every domain.

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Real-World Rebuilding Examples

Sarah from Kelowna, BC filed a consumer proposal in March 2023 owing $38,500 across four credit cards and one line of credit. Her Licensed Insolvency Trustee negotiated a settlement of $14,000 paid over 48 months at $292/month. Her credit score dropped from 620 to 485 when the R7 rating appeared in April 2023.

Sarah opened a Home Trust Secured Visa with $750 deposit in June 2023—three months into her proposal while still making payments. She put her Spotify subscription ($11/month) on the card and set up automatic full balance payment. In January 2024, she added a Refresh Financial credit-builder loan at $50/month.

She made her final proposal payment in March 2027 (on schedule). The R7 clears from her credit report in March 2030—three years after completion. As of February 2026 (current date), she’s 35 months into rebuilding. Her credit score recovered to 615. She qualified for a B-lender auto loan in January 2026 at 10.5% APR with $2,000 down on a $22,000 used SUV.

Key lesson: Sarah started rebuilding immediately—three months into her proposal instead of waiting until completion. She accumulated 2.5 years of positive payment history before even finishing her proposal. This positioned her for auto loan approval the moment she needed it.

Dmitri from Brampton, Ontario filed bankruptcy in August 2023 owing $52,000 across credit cards, payday loans, and CRA tax debt. He was discharged in May 2024 after nine months (first-time filer, no surplus income, met all duties). His credit score dropped to 340 during bankruptcy.

Dmitri applied for a Capital One Guaranteed Mastercard in June 2024—one month after discharge. He deposited $300 (his limit) and paid a $59 annual fee. He used it for gas purchases only, keeping balance under $90 (30% utilization), paying full balance monthly. In December 2024, he added a CTFS Triangle Mastercard (secured, $500 deposit).

As of February 2026—20 months after discharge—his credit score reached 595. He applied for an unsecured credit card and was denied (still too early). He was approved for a subprime auto loan in November 2025: $18,000 at 14.5% APR, $1,500 down, 72 months. His R9 won’t clear until May 2031 under TransUnion’s 7-year Ontario rule (Equifax clears May 2030).

Key lesson: R9 bankruptcy creates a longer road than R7 proposal. Dmitri followed identical rebuilding steps as Sarah but 20 months post-discharge he’s still stuck in subprime tier with no unsecured credit access. He’s 4.5 years away from full credit report clearance—Sarah is 4 years away despite filing at the same time.

Saskia from Winnipeg, Manitoba filed a consumer proposal in November 2021 owing $29,000 across credit cards and medical debt from emergency treatment during U.S. travel. Her proposal offered $10,500 over 60 months at $175/month. She inherited $12,000 from her grandmother’s estate in September 2023 and used it to pay off the remaining proposal balance immediately—22 months into a 60-month plan.

Her R7 appeared in December 2021 when she filed. Her score dropped from 640 to 510. She opened two secured credit cards in January 2022 and maintained perfect payment history. She completed her proposal early in November 2023 (2 years instead of 5 years). The R7 clears from her report in November 2026—three years after early completion, and five years total from filing.

As of February 2026 (current date), her credit score reached 705. The R7 is still on her report but clears in 9 months. She was approved for a B-lender mortgage in January 2026: 23% down ($69,000 on $300,000 purchase price), 6.2% interest rate (prime + 2.5%), 5-year term. She plans to refinance with an A-lender in 2027 once the R7 fully clears and she establishes 12 months of mortgage payment history.

Key lesson: Paying off the proposal early (2 years vs. 5 years) shortened Saskia’s total credit impact to 5 years instead of 8 years. She reached near-prime credit scores (705) while the R7 was still reporting because she had 4+ years of perfect rebuilding history. This allowed mortgage approval 2-3 years earlier than typical R7 filers who take the full 5 years to complete payments.

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Stop waiting. Start rebuilding today. Every month you delay costs you money in higher interest, insurance premiums, and lost opportunities. Get your free debt assessment now and see exactly how long your path to good credit will take—consumer proposal vs. bankruptcy comparison included.