Mortgage Loans After Bankruptcy Ways To Boost Your Fico Score

Mortgage Loans After Bankruptcy - Ways to​ Boost Your Fico Score
After a​ bankruptcy is​ discharged,​ many lenders will offer you​ a​ home loan .​
In most cases,​ these lenders do not require new lines of​ credit or​ a​ high credit rating .​
Buying a​ home with good or​ fair credit has its advantages .​
These individuals likely obtain better mortgage rates and qualify for a​ range of​ home loans .​
Here are a​ few tips on​ ways to​ raise your credit score before applying for a​ mortgage.
Pay Creditors on​ Time
The habit you​ adopt for paying creditors can have a​ negative or​ positive effect on​ your credit report .​
If bills are regularly paid on​ time,​ your score will soar .​
Yet,​ paying a​ bill one day late may decrease your credit score by as​ much as​ 10 points.
If possible,​ pay bills a​ couple of​ days before the​ due date .​
Waiting until the​ due date to​ pay credit card bills will not have a​ negative effect on​ your score however,​ you​ may gain a​ few extra points with early payments.
Maintain Low Credit Card Balances
Following a​ bankruptcy,​ it​ is​ essential to​ open a​ new line of​ credit .​
This can be in​ the​ form of​ a​ credit card,​ gas card,​ retail store card,​ etc .​
If applying for a​ new credit card,​ avoid high balances .​
Ideally,​ consumers should keep credit cards at​ approximately 25% of​ the​ limit .​
Keeping a​ large balance will lower your credit score.
Stay Away from Credit Inquiries
Although credit inquiries are inevitable,​ especially when trying to​ re-establish credit,​ avoid applying for too many credit accounts .​
Many consumers are unaware of​ the​ damaging effects of​ inquiries .​
However,​ one inquiry can lower your credit score by 10 to​ 12 points .​
Because credit scores are already low following a​ bankruptcy,​ it​ is​ very important to​ keep inquiries to​ a​ minimum.
Carefully Monitor Credit Report
When attempting to​ boost your credit score,​ regular credit report monitoring is​ important .​
Homebuyers hoping to​ get approved for a​ prime rate mortgage will need a​ credit score of​ at​ least 680 .​
After a​ bankruptcy,​ it​ will take time to​ achieve a​ high credit rating .​
However,​ if​ you​ take immediate steps to​ boost your score,​ it​ may be possible to​ get approved for a​ low rate mortgage within 24 months.
Mortgage Loans After Bankruptcy Ways To Boost Your Fico Score Mortgage Loans After Bankruptcy Ways To Boost Your Fico Score Reviewed by Henda Yesti on June 24, 2018 Rating: 5

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