2nd Mortgage Loan - Can I Get It After Bankruptcy
The effects of a bankruptcy on your credit report will be a financial burden that you will have to deal with for some time. Your creditworthiness has been shattered and now you have to prove yourself to lenders that you are worthy of borrowing again. But before you know it you could be qualifying for loans with good rates and terms before the bankruptcy even drops off your credit report.
Can I Get A 2nd Mortgage After Bankruptcy?
Almost anyone can get credit after bankruptcy, however there is a two years waiting period before you can do so. Most lenders require that you start to re-establish your credit before granting you a second mortgage. During the waiting period you should use this time to rebuild your credit history by making timely payments on any outstanding credits. Keeping a flawless record of on-time payments that you have made since your bankruptcy can definitely put you in a better position to refinance your home. Although a second mortgage after bankruptcy is available, you need to keep in mind that you will not qualify for the best interest rates available.
How Long Will A Bankruptcy Remain On My Credit Report?
A bankruptcy will remain on your credit report for up to 10 years, and this can be devastating when applying for credit. But remember nothing on your credit report is forever. The negative effect on your credit score will start to diminish the day your case is closed, but it is up to you to adapt responsible credit habits in order for that to happen.
How Can I Rebuild My Credit After Bankruptcy?
Save, save, save: Once your bankruptcy has been discharged, save as much money as possible for a down payment - saving for a down payment will reduce your interest rate.
Timely payments: Make all payments on time, including rent, utilities and any credit cards. Maxing out your credit cards will hurt your credit score, so stay within your credit limit, make timely payments and only buy what you need.
Re-establish credit: In-order to rebuild your credit, you will have to get and use credit to build your credit score, so don’t be afraid to do so, but do so responsibly because the goal is to re-establish good credit. You will need two types of credit to start rebuilding your credit score: Installment credit, such as auto loans and revolving credit, like credit cards. Start by applying for a secured credit card and make your payments on time and stay within the credit limit is a good start towards rebuilding your credit score.
Credit check: Make sure that the information on your credit report is current and doesn’t have any discrepancies. If there is a mistake on your credit report, you should immediately contact the credit bureau and get it resolved.
Credit Inquiries: Minimize credit inquiries - try not to open up too many new credits or have too much credit inquires on your credit report. It is possible to bounce back after bankruptcy, however you will have to work extra hard at rebuilding your excellent credit history. Qualifying for a second mortgage after a bankruptcy is much easier to get with a good credit history. This is your chance to erase the past look forward to a brighter future with a spotless credit report.