Thursday, February 7, 2013

Rebuild Credit After Foreclosure




The real estate business in the United States is one of the industries that are greatly affected by the country’s economic downturn. This is the reason millions of Americans have experienced either short sales or foreclosure. If you’re one of them, you might have headaches thinking how you can rebuild your credit score after a foreclosure. Here’s what you need to do:

1.         Find out what causes the foreclosure.
It will be easy for you to solve the problem if you know what leads you to foreclosure. It’s important to understand why it happened and what can you do to prevent it from happening again.

2.         Check your credit report for inaccuracies.
Every year, you’ll get a free credit report from the three national credit bureaus. Get your copy and review it thoroughly. Should you discover errors or any inaccuracy, dispute it. If you noticed old and unsettled debts, pay them so they won’t be dragging down your score.

3.         Avoid late payments.
Your payment history has the greatest weight in your FICO score. Hence, it is important that you settle your bills on time. If after several years, your report or history shows that you’re already capable of paying all your bills and owning a home that means you’ve already recovered from all the circumstances caused by the past foreclosure.

4.         Change your spending habits.
Start budgeting your income now, as it can help alleviate financial stress. Budgeting means making decisions about how you’re going to spend your money. Start adjusting your spending habits and make sure you stick to your budget.

More tips on how to rebuild your credit visit, www.rebuildingyourfuture.com

No comments:

Post a Comment