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Step 1
Order a current copy of your credit report that includes your credit score. You should know exactly what is contained in your credit report so that you know what items may affect you getting approved for a loan. You also want to check for any inaccurate items that may need to be disputed.
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Step 2
Obtain a credit card. This may seem impossible to do but most companies will approve you for a credit card after filing bankruptcy because they know that some of your debt has been wiped out or reorganized. You may have to settle with an interest rate that is slightly higher than normal, but keep in mind that the purpose of the card is to work on building new credit. There are companies that offer secured credit cards that may be easier to qualify for if you have filed Chapter 13.
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Step 3
Apply for a secured loan at your bank. Most banks will not approve you for a loan; however, most may approve a secured loan. Open a savings account and deposit the amount that you wish to borrow. The bank can use the amount in the savings account as collateral against your secured loan. The banks usually approve this type of loan because they know that the funds are available in the savings account. Pay off the secured loan in installments and this will help to raise your credit score. It also shows a lender that you are able to pay your bills on time.
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Step 4
Consider buying a home using seller financing or land contracts. This type of financing allows the buyer to have his home financed by the seller. This type of financing does not carry the restrictions that financing through a traditional mortgage lender carries. Once the loan of the home has been satisfied, the seller will give the buyer the deed to the home. Sometimes, this type of financing will offer lower interest rates.
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Step 5
Consider a "no credit check" mortgage. There are lenders available that will finance a mortgage with no credit check. Before you consider this type of financing, explore all of the risks that are involved. Usually these kinds of loans are granted at a higher interest rate. The borrower may also be required to put down a large down payment for security. If you decide to use this type of loan, be sure that the lender is reporting your payments to your credit bureau in order to re-establish your credit.
