credit

Home Mortgages and Bankruptcy

Filing for bankruptcy no longer creates obstacles for a future home buyer. Instead, many mortgage lenders have relaxed requirements so that even individuals who file for bankruptcy are able to obtain a home more quickly than ever before. The following will discuss some available mortgage loans and how they are affected by the bankruptcy process. Federal Housing Authority (FHA) Loans FHA loans are federally-insured loans and are attractive to many because they allow a buyer to put down only 3.5% of the home’s purchase price. The credit score limits for these loans are also much more generous than other types of conventional loans. In many cases following a Chapter 7 bankruptcy, a person will be required to wait two years to obtain this type of loan. If a person opens a new credit account after filing for bankruptcy, he or she will often be required to make payments on time to establish a good credit history. Other individuals decide to speed up the qualification process by not opening any credit accounts following bankruptcy. Instead, if a person is able to demonstrate that filing for bankruptcy was beyond his or her control, it is possible to reduce the waiting period to [...]

2019-03-23T18:22:51+00:00Tags: , , , |

Steps to Quickly Improve Your Credit Score

For people who have struggled with debt and/or bankruptcy, their credit score plays an important role in helping them obtain a new car, mortgage, or even a new job. While one of the best steps that people with credit card problems can take is to obtain the assistance of a knowledgeable attorney, it is also good advice to understand the various available ways to improve your credit rating. Ask for a Credit Line Increase Rather Than a New Card Requesting an increase in your credit limit is a better idea than obtaining a new credit card because each time a person fills out an application for a new credit card, a company will check his or her credit. The mere presence of an error on a person’s credit report will not automatically weaken that person’s credit rating. Some of the major factors that can be associated with a person’s credit rating and impact his or her credit score include payment history, amount of debt, age of accounts, account mix, and history of credit applications. Create a Plan to Improve Your Credit Score If the information reflected in your credit report is accurate and you want to take plans to improve [...]

2018-03-12T13:05:26+00:00Tags: , , |