Rebuilding your Credit After the Bankruptcy

June 10, 2010 · Posted in Bankruptcy, Credit

You have gone through bankruptcy and should not nobody. Now is the perfect time to buy that house you’ve always wanted – right? Wrong! Yes, you can probably find a mortgage lender real estate, because you can not declare bankruptcy again for at least six years.

The bankruptcy will appear on all three credit reports for seven to ten years, which will make a greater risk to lenders of real estate. You can not do something about it, however, can show real estate lenders are handling credit much better now by rebuilding it. This can reduce the risk factor, to obtain a mortgage of real estate. Improvements using the following steps, you can actually rebuild your credit in a relatively short time.

First, get copies of your credit report from credit bureaus, and clean. You have the right to a free report from all three agencies annually.

Make sure your creditors listed in your bankruptcy, have cleared your credit report information. Otherwise, it appears as if you still owe money and are not paying.

Ensure any creditors not listed in the bankruptcy process and you are paying regularly have been reporting your good credit at three agencies. Any contact is not reporting this and ask them to do so. This will increase your chances of getting a loan for your property.

If there was a specific event or cause of your bankruptcy, you can add up to a 100-word explanation of your credit report from each agency. The real estate lender will get this explanation as part of your credit report.

Will be particularly good for real estate lenders if you have received credit counseling or help will help in several ways. A credit counseling agency will help you create good budget and I advise you to use and stick to it. They offer advice on the use of credit in the future, and how to restore your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask for something in writing to that effect. You can help the real estate loan request

The problem is finding a reputable agency. Some are downright questionable. Here are some ideas to help you find a reputable agency:

They should be a member of either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Both are national trade associations.
Agencies approved by the U.S. office Administration (part of the Department of Justice) are good agencies.
Interview the agencies, asking what they offer and the cost of each service. Good agencies should meet with you for 60-to-90 minutes, reviewing your financial situation and advice offered by the budget before making any credit repair.
Ask for costs in writing from the agency you choose. It should collect about $ 50 or less, with budget counseling sessions for under $ 20 each.
Stay away from those who push their program of debt management, where they want to pay all other creditors, through them.

The use of credit counseling agencies to help rebuild your credit properly. It can take less than a year to achieve, however, make a big difference when you get that mortgage of real estate.

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