Why Credit Repair after Foreclosure is Vital

Credit repair after foreclosure is one of the most important things you can do to get back on track.  

Foreclosure is a potential nightmare that almost any homeowner might face and it can have disastrous consequences, some of which may be irrevocable. To avoid these consequences, it is essential to take an initiative to repair your credit after foreclosure.  

The most tragic result of foreclosure is the loss of one’s home. In association with this, another direct result of foreclosure is the terrible way in which it affects your credit profile. It can literally destroy your credit history overnight. It will negatively affect your credit score, in the very least, for seven years.

Credit repair after foreclosure therefore becomes vital. Unfortunately, having a good credit score is almost imperative in today’s world as it affects many of the things that are important in our lives. So a derogatory mark on your credit score due to foreclosure can and will lead to some difficulties. That’s why you need to think seriously about restoring your credit after foreclosure whether you decide to do it yourself or hire a professional company to do it for you for a fee.

  • Difficulty Obtaining New Loans - If your credit history was already bad to begin with, it will completely plummet afterwards. For one thing, the ability to borrow again will be greatly reduced; you may be unable to borrow completely or may face opposition to borrowing for months, even years.  To avoid this problem, you can take immediate steps outlined below to get a good start.
  • Difficulty Renting - Loss of your home also means that very few lenders will even consider lending to you again, which in turn means that securing another home may become next to impossible.  Unfortunately, even some landlords require that a potential tenant have a good credit profile; this means that after losing your home, you may face a lot of problems in even renting a new place to live. Therefore, to avoid making life miserable, you need to take quick steps for credit repair after foreclosure.
  • Credit Check for New Employment - Another big blow is to a person’s job. People who have been foreclosed upon often find trouble in either getting a new job, or keeping their present employment. This is due to the fact that many employers require a good credit rating to secure a job. Foreclosure, in some cases, has even led to people being terminated. It can even cause the loss of a person’s chance to get a better pay or promotion in future.  

Things to Do Immediately

Credit repair after foreclosure can be a long, tedious process.

  • First and foremost, you need to order a copy of your credit report.  Yes, I know, it's probably the last thing you want to look at at this point, and guaranteed, it's probably bruised, bloodied and battered.  But, take heart, it will be the worst it could ever  be at this point.  There is no other direction but up for your traumatized credit. You will need to arm yourself with knowledge of your credit score components so you know exactly what to work on.  Start writing some credit repair sample letters, then finalize and send your disputes of any inaccuracies to the credit bureaus.
  • The most important thing to do is get your finances in order. Pay off all your outstanding bills, and then pay all your future monthly bills on time.
  • In the same way, organize and list all your debts and start paying them off, the sooner the better. Erasing outstanding debts paves the way to clearing your future credit score.
  • Another wise thing to do is to cut any extra credit cards and keep using only those that you actually need. Keep the balances on them to a manageable level and try to pay them off in full every month.
  • Cutting out, at least for a while, any unnecessary expenses also helps.
  • Build credit by getting credit, just never let the balance go out of control and always pay on time.  You will be surprised how many credit card companies will be willing to extend credit after foreclosure.  It will be with a secured credit card, but it's a great start to rebuilding your battered credit:  Best credit cards after bankruptcy and foreclosure
  • Last but not least, try your best to get the foreclosure removed from your credit profile.  Some credit repair companies have been able to get this done, but be warned that most of the time, if the foreclosure was reported accurately, it may stay on your record for at least 7 years.  
Find more free credit repair tips here.

Although your credit has been tarnished by foreclosure, you can overcome it by exercising good financial management moving forward.  Many people are in your shoes in this economy and the best part is you are starting out with a blank slate and a second chance to learn from mistakes made in the past, which is where they need to be left behind.  Onward and forward...

Get started on your credit repair after foreclosure NOW!

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