Credit repair versus re-establishing credit

Re-Establishing Credit

Re-Establishing Credit After Bankruptcy And Foreclosure Through Secured Credit Cards

Credit repair is the task of removing derogatory, negative, and inaccurate information from your credit report.  The older your negative credit items are the less impact it has on your credit scores.  Removing old negative items will not necessarily improve your credit scores but your credit report will look cleaner and will give creditors a better first impression.  Credit repair can boost your credit scores if you get a recent negative or inaccurate item off your credit report.

Secured Credit Cards In Re-Establishing Credit

Re-establishing credit is the task of adding new credit to improve your credit scores.  Mortgage lenders want to see re-established credit for at least a year for them to feel comfortable in approving a mortgage loan.  Mortgage lenders do not want to see any late payments after a bankruptcy and/or foreclosure and most of them require a minimun of three re-established credit items on your credit report for mortgage loan approval.

How do you go about re-establishing credit after you file bankruptcy or had a recent foreclosure?

A bankruptcy can plummet your credit scores by 200 points or more and a foreclosure can tank your credit scores by 150 points or more.  So how do you go about re-establishing credit after filing bankruptcy or a foreclosure?   It is extremely difficult to get new credit when your credit scores are below 600 FICO.  The chances are that your credit scores will be below 500 FICO after your bankruptcy or foreclosure is reported to the three major credit reporting agencies.  The best way for you to go about re-establishing credit after a bankruptcy or foreclosure is to get 3 to 5 secured credit cards with each secured credit card having a $500 credit limit on it.

Your Best Friend To Help You Re-Establishing Credit Are Secured Credit Cards

Each secured credit card will boost your credit scores by at least 20 points or more.  As you regularly use your secured credit cards, your credit scores will improve because part of the credit score calculations is the length of your credit history.  Another good news is that your credit scores will slowly, but surely, increase as your bankruptcy or foreclosure ages.  Re-establishing credit is a long but rewarding process.

Never be late on your payment

Never be late on any monthly credit payments while you are re-establishing credit and/or going through a credit repair program.  One late payment will drop your credit scores by at least 80 points.  With the combination of credit repair and re-establishing credit, you will be on the road to good credit in about a year.

Credit Fix Advisors:

Whatever a credit repair company does, you can do it yourself.  If you are in need of a reputable credit repair company, contact Credit Fix Advisors at  Credit Fix Advisors is a one stop shop credit repair and credit consulting company where you can gather many do-it-yourself information on credit repair and re-establishing your credit.

Related> Re-establishing Credit After Bankruptcy

Related> Re-Establishing After Bankruptcy And Foreclosure

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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