Credit After Bankruptcy - Tips To Boost Credit Score

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					                                          Presented by Daniel Toriola

   Credit cards are very useful. Normally there is no requirement of any collateral, and the amount of credit is fixed
       on the basis of the perceived creditworthiness of the primary holder, which is usually dependent on the
                                                 person’s credit score.
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                                  Credit After Bankruptcy - Tips To Boost Credit Score
                                                      By Carrie Reeder

   Establishing credit after a recent bankruptcy is very important. For the most part, many consumers
acquire excessive debt because of using credit irresponsibly. Hence, after a bankruptcy is discharged,
many people are hesitant to obtain new credit accounts.

However, opening new credit accounts is the first step to rebuilding credit. Low credit scores are
common following a bankruptcy. This makes it difficult to obtain a mortgage, auto loan, etc. Here are a
few tips to help you increase your credit score and re-establish a good credit history.

Understanding the Usefulness of Credit Scores

If you are hoping to make a purchase using credit, credit scores are essential. Prior to obtaining any
sort of credit, lenders must assess a copy of your credit report. In some cases, lenders simply review
your three digit score. This is practical when approving an applicant for instant credit. Those with a low
credit score are at a disadvantage.

Following a bankruptcy, you can expect your credit score to nosedive. Thus, it is important to take the
necessary steps to improve your credit standing. Bankruptcy does not last forever. However, you must
put forth the effort to boost your credit and prove your creditworthiness.

Avoid Repeating Past Mistakes

If bad credit or bankruptcy occurred because of using credit unwisely, learn from your mistakes and
move forward. Many young adults acquire an excessive amount of debt. In some instances, they do
not fully understand how credit works.

If you are drowning in debt, bankruptcy may be the only alternative. If so, avoid making the same
mistake twice. Sadly, there are individuals who file bankruptcy repeatedly. However, rebuilding credit
takes time. Once you are on the path to increasing your credit standing, avoid bad credit decisions.

Establish New Credit Accounts

The only approach for establishing new credit is opening new credit accounts. At first, this may sound

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                                                Presented by Daniel Toriola

scary. However, this maneuver is necessary to quickly increase credit scores. New credit accounts
may consist of a major credit card, store credit card, automobile loan, etc.

Secured credit cards are very effective and easy to qualify for. These sorts of credit cards require
applicants to have a down payment. However, it’s well worth the fee. Once you have obtained a new
credit card, attempt to do three things: make timely payment, maintain low balances, payoff the
balance each month. By doing so, each month your score will increase. Soon, you will qualify for an
unsecured credit card. Within 24 months, you may also qualify for a mortgage or auto loan with a
comparably low rate..

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                                                                                                       Page 2
                                            Presented by Daniel Toriola

                    Buying A Home After Bankruptcy – Low Credit Score Mortgage Loans
                                                         By Carrie Reeder

 Excellent credit is not required to buy a home. Of course, a higher rating will qualify homebuyers for a
low rate and better loan programs. Still, buying a home after bankruptcy is easy.

Although home loans following a bankruptcy discharge come with high rates, a home purchase is a
great way to quickly boost a low credit rating. Here are a few tips on getting a low credit score
mortgage loan.

Sub Prime Mortgage Loan Programs

There are many options available to homebuyers with a low credit rating. Credit scores below 680 do
not qualify for prime home loans. Hence, these persons will need to speak with a sub prime mortgage
broker or lender. Sub prime loans are intended to assist those who cannot obtain traditional mortgage
financing. These lenders work with all types of people and credit situations. Furthermore, sub prime
lenders have a multitude of different loan options.

Who Qualifies for a Sub Prim Mortgage Loan?

Anyone with a low credit score can get approved for a sub prime mortgage loan. However, there are
certain limitations. Many lenders will not approve a mortgage loan if the borrower's credit score is
below 500. In this instance, the risks are too high. Homebuyers who fall into this group may consider
improving their credit before applying for a home loan.

Having a chapter 7 bankruptcy, collection accounts, and judgments will not disqualify a buyer from
obtaining a sub prime mortgage loan. Naturally, loans of this sort have higher interest rates. However,
if the homebuyer maintains a good payment history, they will have the option of refinancing for a better
rate in the future.

Other Loan Options Available after Bankruptcy

As mentioned, sub prime mortgage lenders offer a range of home loans for every need. Following a
bankruptcy discharge, homebuyers have the option of obtaining a “no credit score home loan.”
Because lenders do not offer 100% financing on these loans, buyers must be prepared to pay a 20%
down payment.

Another loan option available is the zero down home loan. This loan is offered to buyers with good and
bad credit. Zero down home loans include 100% financing, which is perfect for first time homebuyers
and buyers with little cash savings. To qualify for a no money down home loan with bad credit, your
credit score cannot fall below 580.

Try using for a list of Recommended After Bankruptcy Mortgage
Companies online. Their recommended
companies are reputable and competitive in their rates.

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                                                                                                        Page 3
                                               Presented by Daniel Toriola

Related eBooks:

Buying A Home After Bankruptcy – Low Credit Score Mortgage Loans
Is A 640 Fico Credit Score High Enough To Get A Low California Home Loan Mortgage Rate?
Applying For Loans With Bankruptcy
Financing After Bankruptcy
Car Loans After Bankruptcy - Applying For A Bad Credit Car Loan

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