|
Let's just say it: Foreclosure is bad for your credit score. In some ways,
it's worse for your credit than a bankruptcy.
But there is a path to recovery after a foreclosure. If you repair your credit,
you might be able to qualify to buy a home again. Better yet, you don't have
to shell out cash on expensive, so-called "credit repair programs" to
get back on track.
The secret is simple: Hard work and responsibility. To start on the path to
repairing your credit, you'll need to pay your remaining credit accounts on
time each month.
A few other tips on improving your score:
- Credit scoring is about ratios. If you pay 30% on a credit card with
a small balance, it creates as many points as paying 30% on a credit card
with a large balance, even though the dollar amounts are vastly different.
- Always pay more than the minimum payment on a credit card, even if it
is only $1 more. You get extra points for paying more than the minimum
amount.
- Always pay on time or early. Late payments cost you points on your credit
report.
- If you choose to dispute negative items to remove them, start with older
items. The lender is less likely to have kept records for older items and
your dispute, even if not true, may remove the negative item.
- Become one of our clients, if you are eligible. We
provide credit rebuilding information to our clients at no additional charge.
However, we are not a credit repair service and we don’t provide
free information to people who are not our clients or who just come in
for a consultation.
|
