Mortgage Loans After Bankruptcy Ways To Boost Your Fico Score

Mortgage Loans After Bankruptcy Ways To Boost Your Fico Score

Mortgage Loans After Bankruptcy - Ways to​ Boost Your Fico Score
After a​ bankruptcy is​ discharged,​ many lenders will offer you​ a​ home loan .​
In most cases,​ these lenders do not require new lines of​ credit or​ a​ high credit rating .​
Buying a​ home with good or​ fair credit has its advantages .​
These individuals likely obtain better mortgage rates and qualify for a​ range of​ home loans .​
Here are a​ few tips on​ ways to​ raise your credit score before applying for a​ mortgage.
Pay Creditors on​ Time
The habit you​ adopt for paying creditors can have a​ negative or​ positive effect on​ your credit report .​
If bills are regularly paid on​ time,​ your score will soar .​
Yet,​ paying a​ bill one day late may decrease your credit score by as​ much as​ 10 points.
If possible,​ pay bills a​ couple of​ days before the​ due date .​
Waiting until the​ due date to​ pay credit card bills will not have a​ negative effect on​ your score however,​ you​ may gain a​ few extra points with early payments.
Maintain Low Credit Card Balances
Following a​ bankruptcy,​ it​ is​ essential to​ open a​ new line of​ credit .​
This can be in​ the​ form of​ a​ credit card,​ gas card,​ retail store card,​ etc .​
If applying for a​ new credit card,​ avoid high balances .​
Ideally,​ consumers should keep credit cards at​ approximately 25% of​ the​ limit .​
Keeping a​ large balance will lower your credit score.
Stay Away from Credit Inquiries
Although credit inquiries are inevitable,​ especially when trying to​ re-establish credit,​ avoid applying for too many credit accounts .​
Many consumers are unaware of​ the​ damaging effects of​ inquiries .​
However,​ one inquiry can lower your credit score by 10 to​ 12 points .​
Because credit scores are already low following a​ bankruptcy,​ it​ is​ very important to​ keep inquiries to​ a​ minimum.
Carefully Monitor Credit Report
When attempting to​ boost your credit score,​ regular credit report monitoring is​ important .​
Homebuyers hoping to​ get approved for a​ prime rate mortgage will need a​ credit score of​ at​ least 680 .​
After a​ bankruptcy,​ it​ will take time to​ achieve a​ high credit rating .​
However,​ if​ you​ take immediate steps to​ boost your score,​ it​ may be possible to​ get approved for a​ low rate mortgage within 24 months.

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