How to Remove a Foreclosure from Your Credit Reports

Rebuilding or reestablishing your life after a foreclosure on credit is similar to trying to rebuild your credit after a bankruptcy. Actually, the majority of people who have a home foreclosed on them, also file bankruptcy as well so that they can truly try to get a new fresh start again. The steps that you will take to rebuild your credit will be one in the same whether you have had a home foreclosed upon and/or you have filed a bankruptcy.

The first and most important thing for you to do to re-establish your credit is to review a copy of your credit report. You can obtain a free copy of your credit report once per year from each of the 3 credit bureaus by visiting annualcreditreport and following the simple instructions. By reviewing your credit you can see what exactly is reporting in your credit report. It is important to see where you are at so that you have something to work with, you have a starting point and so you know what items need to be paid, what items need to be corrected and what items are not important. Correcting your credit report is of the utmost importance, especially after a bankruptcy. It is very important to make sure all accounts are reporting with 0 balances or that they were paid through the bankruptcy.

The next and second most important step is to reestablish a couple of credit cards. You may have a hard time getting approved for a traditional credit card, but a secured credit card will be just as good. If you are thinking, as many have, that you don’t ever want to have credit again, that is fine as long as you don’t ever plan on needing financing for a car, for a house, or for any other types of large purchases. For most people this is not an option so getting back out there and rebuilding your credit with a couple of credit cards is of the utmost importance. Remember, no credit equals bad credit. Only use the credit cards very sparingly for necessities and pay them off every other month.

Make sure you maintain health and automobile insurance. Medical bills or a car accident can result in high bills and possibly lead to collection. Medical bills are one of the top reasons for filing bankruptcy. Therefore, it is very important to maintain these items.

Create a household budget. Without proper planning it will be hard to stay afloat and properly rebuild your credit. Set realistic spending limits and stick with your budget. If you do not have the money for a non-necessity do not buy it. Impulsive spending leads to financial disaster. Do not live beyond your means and be realistic about what you can afford.

Thus, rebuilding your credit is very important after a foreclosure on credit and/or bankruptcy and following the simple steps above can help to quickly rebuild and improve your credit scores back up. Live within your means, follow your budget and don’t swear off credit cards completely as they are important to the rebuilding process. For more information on credit, credit scoring and rebuilding credit visit the following credit help blog: my-credit-story.com