Yes you can repair your credit after you have had a foreclosure. It will take some work on your part, but it can be done.
A foreclosure will stay on your credit reports for 7 years. Seven years is a long time so you may be tempted to not get any credit repair help, but don’t quit. During that period take some positive steps to show that you are getting credit repair help and you are serious about improving your credit, credit reports and credit scores.
The 3 Step Program To Credit Repairs
Step #1 – Fix Your Credit Problems
- If you have credit problems, get credit repair help.
- It’s okay to seek out help; credit repair services are there for that very purpose.
- Acknowledge to yourself that you have a credit problem and be okay with it.
- If credit problems caused your foreclosure, getting help is the first step toward credit improvement.
- By working with some credit repair services you get an outsiders unbiased opinion.
- A credit repair service will analyze and help you improve your credit problems.
Step # 2 – Change Your Habits
Change your payment habits.
- Make all of your payments on time; this includes credit cards, auto loans, mortgage and student loan payments, insurance, utilities and cell phone payments…just pay all of your bills on time.
- Even if you can only afford to make the minimum payment – make that minimum payment and make it on time.
- Late payments reflect negatively on credit scores.
- Credit reporting agencies take late payments as a signal that you can’t handle responsibility.
Change your spending habits.
- If your spending habits caused your foreclosure you need to change them.
- To help improve your spending habits, create a budget and follow it.
- A budget forces you to stick to a plan, it forces you to restrain your spending…if you follow it.
- In addition to following a budget, you should write down everything you spend. Make sure that list matches the budget; if it doesn’t tighten up your spending.
- By keeping a log of your spending, you will know exactly where your money is being spent.
Step #3 – Pay Off Debt|Debt Management
- When you carry a lot of debt, credit scores drop.
- Credit reporting agencies take your debt load very seriously.
- Too much debt signals to credit reporting agencies that you are overloaded. If you are over loaded, they feel you will make mistakes, not make your payments, make late payments or become a write off.
- Debt management shows the credit reporting agencies and all other creditors that you are serious about cleaning up your debt.