Tips to Improve Your Credit After a Foreclosure

Tips to Improve Your Credit After a Foreclosure

Have you recently experienced a foreclosure? If so, you’re hardly alone. An estimated 5 million Americans lose their homes each year through eviction and foreclosure.

Being forced to relocate can be stressful, and it also has far-reaching financial consequences. For example, you may face hefty fines, late and non-payment fees, and a badly damaged credit score. Plus, you will likely struggle to get approved for loans and mortgages in the future.

Get Out of Debt

Following a foreclosure, you should pay off any large outstanding debt. This will improve your debt-to-income ratio (DTI). Doing so makes you more likely to get approved for another loan. It also shows that you are making positive changes toward financial stability.

Getting out of debt also removes a number of variables from your monthly budget that could get you into trouble when it comes to paying a mortgage. If you’re sitting on some old student loans or medical bills, now is the time to pay them down!

If you have multiple outstanding debts, consolidation can also help. This usually involves transferring all of the money you owe to one loan or credit card with a low interest rate.

Keep Building Positive Credit

If you are trying to improve your credit score after a foreclosure, don’t cut up those credit cards. While it’s essential to stay out of major debt, you will still need to continue building credit.

The best way to do that? By continuing to use your credit cards and paying them off each month. This can lessen the impact of foreclosure on your credit score, as opposed to halting all credit activity which can actually make matters worse.

It is also essential to pay all of your monthly bills on time. Missed payments on regular household expenses like utilities can further damage your credit rating.

Hire Legal Help

While it might be tempting to take a DIY approach to post-foreclosure credit repair, some tasks are best left to the professionals.

Foreclosure experts can help determine whether or not your home loan was legal and fair, and if you’ve been wrongfully foreclosed upon or forced to default on your payments. If you have just been served with a foreclosure notice, they can fight to keep you in your home.

Many law offices also offer resources to help their clients with credit repair after foreclosure.

Rebuild Your Credit Score After Foreclosure

Are you ready to regain control over your finances and future loan opportunities? If so, it’s absolutely vital that you start to rebuild your credit score after foreclosure. The longer you wait, the harder it will be to boost your number!

Contact Estavillo Law Group or call (510) 369-5177 today. We have 50 years of combined experience in Real Estate and Foreclosure law, working with clients just like you! Best of all, our firm is committed to delivering the highest quality results while keeping our client costs down.