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...