subject: How to Rebuild your Credit after a Foreclosure [print this page] If all else has failed and you have tried to save your home but have been turned down for the government loan modification program and other lender workout options and are facing foreclosure, how do you start rebuilding your financial future?
In these tough economic times, homeowners have had to face the unfortunate reality of foreclosure. While this is certainly no consolation, it illustrates that you are not alone and that many Americans are working toward a brighter financial future.
Probably the most important work you will face post-foreclosure is rebuilding your credit. While foreclosure has a very serious negative impact on your credit score, you should keep in mind that it is but one item in your history.
Tips to help you improve your credit score:
Always pay your bills on time.
Keep balances low on credit cards and other revolving accounts.
Pay off debt instead of moving it around.
Don't apply for credit you really don't need.
Do your rate shopping for a given loan within a short period of time.
Request a copy of your credit report annually. By knowing what is on your credit report, you will be able to find the areas that you need to improve.
Check for errors on your credit report, and work with the credit-reporting agency to fix them.
Beware of fraudulent "credit repair" if you have questions about repairing your credit you should contact the credit reporting bureaus.
