How Do I Rebuild My Credit After a Charlotte Foreclosure?
As you well know, when you go through a Charlotte foreclosure, your credit score drops considerably. You CAN rebuild your credit and now is the best time to begin doing so. Going through a foreclosure can be devastating but, as soon as you settle in to your ‘post-foreclosure’ life, you really need to set the following plans into motion. Here are a few tips to help:
Create a budget: A budget allows you to see exactly how much money you have to spend each month. It also helps you track where you spend your money. Put together a budget that fits your lifestyle and then stick to it. It’s okay if you stray from your budget--the key is to revise it rather than thinking that you can’t ‘stick’ to it.
Build an emergency fund: You never know when an emergency will happen. When you’re prepared for a financial emergency, you’re far better protected from financial problems.
Repair your credit: Review your credit reports from all three credit bureaus. Dispute any errors which you find and dispute it NOW. Removing errors from your credit reports help improve your credit.
Establish new credit: This can be tricky after a Charlotte foreclosure. New credit will give you a chance to prove you can manage debt. However, you certainly don’t want to find yourself owing more than you can possibly pay. If you can get a traditional credit card, your interest rate will be very high, so choose and use your credit cards wisely and only charge the amount that you can afford to pay off at the end of the month. An alternative is to apply for a secured credit card, which requires that you put money down as a deposit before credit is extended to you. Use your card regularly but lightly, and you will see your credit start to improve as you make consistent payments.
Have patience: It takes time to rebuild your credit. Don’t expect your credit score to be in the good or excellent range within weeks or even months after your Charlotte foreclosure. Be diligent about following your budget, maintaining an emergency fund and begin saving for that new home purchase in a few years. You’ll be glad you began this process early!
A foreclosure is not the end of the world. Let me know if I can help. Give me a call or email me.
Charlotte Real Estate and Relocation Specialist
Debe Maxwell offers many years of experience helping those relocating to the Charlotte area as well as providing an aggressive marketing strategy for homes for sale in Charlotte. If you're relocating to Charlotte, Debe will help you locate the perfect Charlotte neighborhood first, then locate the perfect home for sale which fits your lifestyle and your budget to a 't.'
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Debe Maxwell, Realtor®/Broker/CRS
Direct: (704) 491-3310
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