There are many reasons people have bad credit rating and need to improve or repair their credit ratings, one of which is wanting to apply for a mortgage after bankruptcy. Having bankruptcy on your credit record does not have to be the disaster many people believe it is, and so long as you take the right steps and be patient, then you will be able to build up a good credit report in the space of around two years, meaning you will then be a candidate whose application would be considered by lenders.
Making sure that your credit report is accurate is the first thing that you should do, as it is not unheard of for inaccurate data to be recorded after bankruptcy. Accounts that were included in the bankruptcy may well still be showing as open and in arrears, and things such as payment plans may be recorded incorrectly. The only way to be sure that everything is in order is to check it through carefully yourself, and if in doubt then speak to the solicitor that handled your bankruptcy so they can cross reference the information held. Your credit report will be one of the first things any potential creditor looks at, so making sure it is accurate is vital.
Building up a good payment history is very important if you want to be considered for a mortgage after bankruptcy, as another thing lenders will look for is proof that you are able to commit to and maintain regular repayments. Obtaining credit following bankruptcy can be difficult, however you will find there are some credit card companies that specialise in high risk lending, who will take you on. While getting a credit card may be the last thing you want to do, it is the best way build a good payment history, by using it to make small purchases, and paying off the balance in full every monthly.
The interest rates on these kinds of cards will be sky high so you never want to leave an outstanding balance with bad credit lenders. Taking a few small steps at a time is the best way to progressing towards getting a mortgage after bankruptcy, and while it may feel frustrating, it will be worth the time and patience in the end.
Related posts:
- Don’t Let Bad Credit Keep You from Getting Into a Great Home
- Free Credit Report – The What, How, and Why
- How Do Banks Determine Your Credit Rating?
- Credit Repair Lawyer
- How to Repair Credit Report Issues
