My hubby and I just lost our home due to an A.R.M. (Adjustable Rate Mortgage). This was our first home and honestly we didn't quite understand the A.R.M. but we found out the hard way. Is there anyway we can reastablish our credit? Any help would be beneficial. Thanks in advance.
2007-09-21 11:18:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
You are not alone this is happening all over the Country.
A foreclosure without a bankruptcy is one of the worst things that can show on your credit.
The best way to start rebuilding is to use your credit cards never exceed 30% of your credit limit in any given month and pay in full before the due date.
I did this with 2 cards for 2 years and raised my score over 150-points.
Good luck.
2007-09-21 11:28:24 · answer #1 · answered by ? 7 · 0⤊ 0⤋
Unfortunately foreclosure stays on your credit report for 7 years. If you still have active credit with stores or credit cards, keep paying them off. In fact if you can double the payment, it will lower your interest rates. If you don't have any credit search the web for the best deal on a pay up front credit card. The longer that you use it the more likely they will extend you credit if you pay on time and do all the things in the contract. They will also report to the credit bureau that you are in good standing with them. A local furniture store is a good source of credit also. Best of Luck. I had the house reposed about 11 years ago. It took a lot of time, a lot of hard work, and patience, but I now have excellent credit.
2007-09-21 11:32:55 · answer #2 · answered by ? 6 · 0⤊ 0⤋
You have to pay off the judgment if there is one. If there's one against you, you'll never be eligible for another personal loan or mortgage.
You also need to pay everything on time and encourage your landlord & your other creditors to report to the bureaus.
DO NOT get those credit repair credit cards, they do more damage than good. After a year, your credit will start to improve.
2007-09-21 11:30:25 · answer #3 · answered by Roland'sMommy 6 · 0⤊ 0⤋
Keep all your other bills current & on time .
Keep debt to a below 10% of your income . . .
Start reading documents , & do NOT sign until you understand what it says in writing .
( Not what the salesman says )
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2007-09-21 11:30:34 · answer #4 · answered by kate 7 · 0⤊ 0⤋
it will probably take a few yrs - foreclosure is a big negative
2007-09-21 11:54:09 · answer #5 · answered by Anonymous · 0⤊ 0⤋