Fix Bad Credit Yourself!

Don't be discouraged that you will never be able to do or have the things which people with good credit have.

After bankruptcy, your credit standing will undoubtedly be the worse for wear! However, as soon as the "discharge" is issued, you can begin to fix your bad credit report.

Perhaps there is another reason your credit is so bad. No matter, these suggestions will work for you too! So, let's get started by putting your credit repair tool belt on and your armed and ready to go!

Tools to Assist with Bad Credit Repair

• manage your existing credit/charge cards wisely;

• pay ALL your bills ON TIME every month; and,

• talk to a lender about qualifying for a home loan, if you don't presently own a home.

Bad Credit Cleanup Suggestions

• prepare a spreadsheet which lists all of your income, expenses, expense due dates and amounts, and planned payment dates. You can do this on your computer or manually and it costs you nothing;

• after you have prepared your spreadsheet, be sure to pay the bills as planned ON TIME. Again, this costs you nothing;

• begin to pay off credit card balances. With credit cards, you are paying for your purchases as well as any interest charges, late fees, etc., so try to make this a priority!;

• if you do not have the extra cash right now to begin paying down your credit card balances, at least be sure that you make the payments ON TIME. Late fees are costly!; and,

• if you have credit card balances, try not to charge anything until your credit cards are all paid off!

I mentioned above that it is wise after bankruptcy to consult with one or two lenders about the possibility of purchasing a home. Now, you are probably thinking, who on earth would lend to me after a bankruptcy! Well, you would be surprised!

Truly, there are many loan packages which you may be able to qualify for following bankruptcy. If you follow this plan and begin to fix bad credit found on your report you can get a home loan.

Bad Credit Mortgage is a Possibility

For first time home buyers purchasing a home after bankruptcy is a good way to go because it can raise your credit rating. You build equity in your home as you pay off the mortgage loan. Your home will most likely appreciate in value over time, as well as a myriad of other thought provoking reasons.

One thing to remember is that every time a potential creditor/lender runs a credit check through the reporting agencies, the inquiry will appear on your credit report.

Try to establish a good working relationship with the lender you would like to use and get their feel for your position and their thoughts on your ability to qualify prior to their running your credit.

Along that same line, keep in mind that only those with a permissible "reason" are allowed to review your credit report. Someone cannot simply decide that he or she will review your credit report. There must be a legal reason for him or her to do so!

Additionally, there are credit inquiries which will lower your credit score and some which will not. Credit inquiries can stay on your credit report for up to 24 months.

You CAN fix bad credit after bankruptcy! The two things to remember are:

1. pay your bills on time every month; and
2. don't create more debt for yourself than you can handle!

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