How a consumer proposal affects your credit in Canada

The FCAC guidance checked for this article gives the earlier of two dates: three years after paying the debts included in the proposal, or six years after signing it. Keep both milestones rather than counting only from the final payment. Check the actual reports and supporting documents if an entry looks inconsistent.

Illustrative year-level example: suppose a proposal is signed in 2026 and the included debts are paid in 2028. Three years after payment is 2031; six years after signing is 2032. The earlier year is 2031. Exact dates and your records matter. This example explains the rule, not a guarantee about when a bureau will process a particular file.

The administrator’s Form 57 certifies that the consumer proposal’s provisions have been fully performed. Keep a copy with the proposal documents. It is evidence of completion, not a new-credit approval or an instruction to erase every negative item on a report. If you need a copy or clarification, contact the LIT who administered the proposal.

Review both Equifax and TransUnion reports. FCAC explains that you can dispute errors for free and should gather supporting records. Identify the specific account, date, balance or status you believe is wrong, then contact the bureau and relevant lender. An accurate negative entry is different from an error; paying a “credit repair” service does not make accurate information removable on demand.

Before adding a credit product, make sure the payment and any fees fit your current budget. Ask what the product reports, to which bureau, and what it costs if you do not use it. Do not confuse being offered a product with evidence it is the best next step. No website can promise the number of points your score will gain.

If your concern is a future mortgage, vehicle or other credit application, write down the expected date and speak with the relevant provider about its requirements. A credit-report removal rule is not an underwriting policy. Separate the questions: “Is this report accurate?” and “What would this lender need to assess an application?” Neither is answered by a guaranteed-approval advertisement.