Individuals Interested In Purchasing Their Own Home Strive To Maintain A Positive Credit Rating. This Is Achieved By Paying Bills On Time, Having A Low Debt To Income Ratio, And So Forth. Nevertheless, Several Lenders Are Eager To Offer Home Mortgages To Individuals With Bad Credit. These Mortgages Have A Higher Interest Rate, Which Increases The Monthly Payment. Although A Mortgage May Be Attained With Bad Credit, The Course Of Action Is Slightly Different For Individuals Who Have Filed Bankruptcy.Two Types Of BankruptciesThere Are Two Types Of Bankruptcies. A Chapter 7 Bankruptcy Involves Complete Liquidation In Which Debts Do Not Have To Be Re-paid. On The Other Hand, A Chapter 13 Bankruptcy Entails Repaying A Portion Of The Debt Over A Fixed Period. For The Most Part, A Bankruptcy Should Be The Last Alternative, And Not A Quick Fix To Credit Problems. Many Explanations Cause A Person To File Bankruptcy. These Include Excess Credit Card And Consumer Debt, High Medical Bills, Etc. Lenders Determine Credit Worthiness Based On Information Provided In Credit Reports. A Bankruptcy Is A Negative Remark That Remains On Credit Reports For Ten Years. Throughout This 10-year Period, Individuals Who Filed Bankruptcy Can Expect To Pay Higher Interest Rates On Automobile Loans, Mortgages, And Credit Cards.How Long Should You Wait Before Buying A HomeObtaining A Home After Filing For Bankruptcy Is Feasible; Nonetheless, Individuals Who Have Filed Must Adhere To Specific Stipulations. To Obtain A Mortgage After Filing A Chapter 7 Or Chapter 13, You Must Wait At Least Two Years After The Bankruptcy Is Discharged. Moreover, Individuals Who Have Had A Bankruptcy Case Dismissed Must Also Wait Two Years Before Applying For A Mortgage. During This 24-month Period, It Is Recommended That Person's Re-establish Their Credit History. If Possible, Acquire A Line Of Credit From At Least Three To Four Creditors. Immediately Following A Bankruptcy, A Secured Credit Card, Or A High Interest Credit Card Is Your Best Option. However, Once A Good Payment History Is Established With These Creditors, You May Be Able To Obtain Credit Card Offers With Reasonable Rates.
