How to Rebuild Credit After Foreclosure
If you are one of the many people out there who has lost your home due to foreclosure, you are probably wondering about your future. You might dream of one day being able to own a home of your own again, but worry that it will never happen. Your credit might be destroyed right now between the late payments and the loss of your home, and you may have fallen behind on other bills while trying to fight to keep your home. If this is the case, you should know that it is possible to come back from this awful financial situation. Here’s how to rebuild credit after foreclosure.
Review Your Credit Report
First of all, don’t assume that just because you have a foreclosure on your credit report means that the other things don’t matter. It is still very important to check your credit report for any errors and to ensure that any entries that are over seven years old have fallen off. Even removing just one error from your credit report can help raise your score.
Pay All of Your Bills On Time
When going through a foreclosure, it can be easy to let your other bills get behind while you are either trying to save your home or when you’re saving up so that you can rent another home after your house has gone to foreclosure auction. However, making an effort to pay each of your bills on time can make a huge difference in your overall credit score and can help prevent you from getting behind on other things.
Apply for Credit
First, it is important to note that filling out too many credit inquiries or having too many high-balance credit cards or loans can negatively impact your credit. If you don’t have anything positive on your credit report, however, opening up a small secured credit card or other line of credit and using it responsibly can help you rebuild credit after foreclosure by re-establishing a positive payment history. Also remember that it is important not to close credit cards, especially ones that you have had for a long time. The longevity of your credit history is taken into account when determining your credit score, so that credit card you opened when you were 18 may actually be helping your credit score more than you think.
If you are going through foreclosure or have recently lost your house, you might worry that you will never be able to recover. Luckily, you do have options. If you are looking for ways to rebuild credit after foreclosure, please feel free to contact us. We provide credit repair services throughout St. Louis and the surrounding areas, including but not limited to, St. Charles, St. Peters, Wentzville, and Herculaneum.