Although some borrowers can be eligible for a mortgage in as little as a year following a bankruptcy, waiting a little longer might be a smarter move.
Filing for bankruptcy impacts your credit score considerably, so focusing on rebuilding your credit means you will be eligible for a lower interest rate.
The Only Way is Up!
A solid history record of on-time payments and responsible credit use can help you get your credit score back in shape. But it will not happen overnight.
Use this time to your advantage, start saving money for a down payment!
Set aside even a small portion of your income into a savings account. You will be surprised at how quickly it adds up!
Pay ALL of Your Bills on Time!
When you think of bills, credit cards, auto loans and mortgage payments typically come to mind.
However other payments can impact your credit score as well. Rent payments, utilities, medical bills, traffic tickets, even paying your gym membership dues late can affect your credit score!
Delinquent payments to any creditor can be reported to the credit bureaus, and subsequently referred to collection agencies.
Even if you pay the collection off, the fact that you allowed a debt to be unpaid until it reached collections remains on your record.
At the very least, make the minimum payment by the due date, or contact your creditor to discuss a feasible payment plan if applicable.
Watch out for Credit Repair Scams!
You will likely start receiving offers “Repair your credit” by removing negative information from your credit report, for a fee.
There is no quick fix to repair an imperfect credit score, and there is nothing that can be done to improve your score that you cannot do yourself!
Getting your finances back on track and improving your credit score will require hard work and dedication.
Be patient. There is no way around it, only through it. And it will be worth it!
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