Repairing Credit After Foreclosure


When you go through the foreclosure process, a lot of things might go through your mind shortly after. You will almost certainly not want to think about your credit or how to repair it, but this is something that’s worth considering. Once all of the smoke has cleared, you will need to start back on the right financial track. So how do you do that? It is not like you’re starting over, but your goal has to be showing future creditors that you have the ability to do well financially if given a second chance. Here are some tips on repairing that credit score.

Digging in at your job
One of the difficulties that you will face through the process is going to be showing your creditors that you are stable financially. There are only so many ways to do that. One of them is really digging in hard at your job. You need to retain employment and if you can move up in your company, do that as well. Work as hard as ever, so that you can show creditors that you’ve made strides since the foreclosure. This will help set you up for success later on.

Stay on top of other bills
When you have one thing completely fall apart, the temptation is to let everything fall apart. You will have so much stress related to the foreclosure and you might just think that there’s no point in working on your credit score anymore. This is not the approach to take. You need to be sure that you are completely on top of your other bills, as this will go a long way to establishing a new financial identity. Pay everything on time or even before the due date if at all possible. This goes for all of your bills, including credit accounts and things like utilities. You won’t have too many options for rebuilding when a foreclosure occurs, so taking advantage of the options that you do have is quite important.

Sign up for a credit card and use it wisely
If you can get a non-secured credit card with a small limit, then sign up for it and use it in the right way. Take out this card and make a couple of purchases each month, paying down the balance before the due date. Many people who do this end up paying for some sort of fixed expense with their card. If you have gas expenses, then that would be something that you could use the card for. When you make payments on time, it will start to bring your credit score up and it will show creditors that you are on the right track once again.

If you are having trouble getting an unsecured credit card, then getting a secured card is a solid option. This will require you to put some money up to cover the card, but it will once again give you the opportunity to pay off your debt on time. Each time you make a payment before the due date, you will be bringing your credit score up and positively impacting the perception of your financial worthiness.

Getting credit counseling if necessary
Many individuals find that it’s best to get credit counseling in order to identify the root of your financial problem. Credit counselors are a good idea for some folks, but they’re sort of useless for others. If you are having an extreme amount of difficulty organizing yourself, then this might be an option worth considering. They truly do provide you with another set of eyes throughout the entire process. They will give you some perspective and work with you to develop a new plan. This is an organized, streamlined way to start working on your credit once your foreclosure is finished.

It is important to note that you won’t be able to do anything overnight. There is no magic bullet that will make everything alright once again. It takes hard work and a dedicated approach, but repairing your credit can be done. The nice thing about the financial world is that there is some forgiveness, and with each day that passes, you are a little bit further away from the foreclosure.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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