-
Step 1
Keep a positive attitude. To rebuild credit after a foreclosure, you must be prepared to deal with rejection. Lenders will be wary of extending new credit to you, but stay focused. The road ahead may be bumpy, but it is possible to reach your goals.
-
Step 2
Educate yourself. Take this opportunity to learn how to better manage your personal finances. Create a budget. Secure health and auto insurance. Set financial goals.
-
Step 3
Build an emergency fund. You may be eager to jump right in, but take precautions. Save up enough money to cover at least 3 months worth of your current bills before seeking new credit. This fund will help protect you from unknown situations that could wreak havoc on your financial stability.
-
Step 4
View your credit report. Lenders use this information to decide your credit worthiness. If you want to rebuild credit after a foreclosure, then you must know how bad your credit really is. Once you get the report, start looking for ways to repair blemishes. Have any inaccuracies corrected. Settle any accounts with open balances.
-
Step 5
Get credit cards. You need them to establish a better payment history. Shop around to find the best rates possible. Also, consider getting a secured credit card; they work just as well as the unsecured ones in rebuilding credit.
-
Step 6
Give it time. Don't rush into anything. Otherwise, you open yourself up to scams and predatory lending practices. Expect to be in the rebuilding stage for at least 24 months.
Comments
Entropy997 said
on 4/14/2008 Sure, you can do that... or you could become a pirate, and sail the seven seas raping and pillaging your way to success!
Lenders will be quite happy to offer you a loan for your new ship & cannons once they see the gold, regardless as to your credit history! Trust me on this one.