5 proven techniques to help rebuild your credit after foreclosure

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Page 1: 5 proven techniques to help rebuild your credit after foreclosure

5 Proven Techniques to Help Rebuild Your Credit after Foreclosure

Rebuilding credit is easy when you know what to do

Applying for multiple credit cards at one time is not the way to build credit when starting fresh or

recovering from a foreclosure. In doing this, you rack up multiple hard inquires on your credit

report, which sends red flags to all potential lenders. As a result, you are denied and those

inquires will stay on your credit report for 2 years. Whether you are trying to build or rebuild

credit, you must select one credit building method and pay your bills on time for a year before

applying for additional credit. This will show the bank that you have demonstrated your credit

worthiness.

How long does it take to rebuild credit?

In this chapter. You need to display at least 1 year of on-time payments before major bank cards, like American Express and Visa, take you seriously.

Can you tell me the various ways to build or rebuild my credit?

Yes. There are five ways to establish or restore your credit. You can dispute and remove

negative items from your credit report, obtain a secured credit card, apply for retail store cards,

use a Credit unions rebuild your credit loan and take out a Secured bank loan.

First technique-repair your credit

You want to get a copy of your credit report for review. Order your credit report using the

methods discussed in Chapter 1. Once you have the credit report, review it for accounts that do

not belong to you. If it’s not clean, then use the dispute methods in Chapter 2 on how to repair

your credit report. If there is no incorrect information on your report, it’s time to build or rebuild

credit.

Second technique-use a secured credit card?

This method is good if you are trying to rebuild or start a new credit file. Getting a secured credit

card and using it responsibly is an excellent way to build creditors’ trust in your ability to use

new credit, so that, eventually, you can get an unsecured card. With a secured credit card, the

companies require cardholders to secure their credit purchases by depositing a certain amount

of money as collateral. That way, if you don't pay your secured credit card, the bank can get

repaid by withdrawing the money you owe from the deposit you provided.

Third technique-retail store cards?

This method is good if you are building credit for the first time. Retail cards like those at Macy’s

and JCPenney are easier to get than a major credit card. The reason the retail cards are easier

to get is because they grant lower limits and the card is tied to merchandise in their store only.

Apply for a card and then make your payments on time for 6 months. Pull your credit report and

check your payment history.

Page 2: 5 proven techniques to help rebuild your credit after foreclosure

Fourth technique-credit builder loan - credit union?

This method is good if you are building or rebuilding your credit files. You know how important it

is to have excellent credit. A credit builder loan is your key to establishing, or reestablishing,

your credit. Here’s how it works: the credit union loans you money that is deposited into a

certificate of deposit (CD). You make regular payments that are reported to the credit-reporting

agencies. Once the loan is paid off, you get the certificate of deposit and have a better credit

score. The benefits of this program are that you don’t have to give any money up front, the

credit union reports to all 3 credit bureaus, and you establish a small saving at the end of the

12-month installment period.

Fifth technique-apply for a secured bank loan?

This method is good if you are rebuilding or building credit for the first time. Save $500-$1000

and then, visit various banks with your credit report in hand, asking them whether they do

secure passbook loans based on your savings. Once they agree, ask the loan officer if there is

a prepayment penalty, what the interest rate is, and what credit bureaus they report to. Apply for

a 12-month passbook loan, then, with the loan from the first bank, go to another bank and open

a second passbook loan with a 12-month pay period. Then, wait 3 weeks and go to a third bank

and repeat the process with the loan from the second bank. Now you have 3 loans at 3 different

banks for a 12-month payment plan. Now, start making payments with the loan you received

from the last bank. After 6 months of on-time payments, check your credit report to make sure

the loans are being reported correctly. Congratulations, you have just established superior credit

with 3 bank installment loans.

If you want to get the best credit ever, get approved for your dream home, car and stop collectors from harassing you on a daily bases, then it’s time to take action by signing up for you free Self Credit Repair E-Class by Clicking Here Mark Clayborne is Amazon’s best-selling author of “Hidden Credit Repair Secrets” and a credit repair expert with 10 years of experience assisting consumers with credit related issues. He is also the radio host of the show “Who Else Wants Better Credit” on blog talk radio every Tuesday at 7:30PM-PST.