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.
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.
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
- 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
- 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
- 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:
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
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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