times you may become a bit side tracked dealing with life situations as they come at you at full speed. When you have to manage some many things at once you can become overloaded with tasks, or there may be some financial obstacles that can set you back and cause you to become fully off-track. When this occurs in the credit world, you can seem to find that most people are inclined to figure out or resolve what ever blemish that made their credit score go the other direction.
A Bad credit score can not only hurt you in terms of a higher payment but also set you back when trying to get financed in the future. With this being the case, like all things that are broken, most including your credit can be fixed. Yes, even the bad stuff that was on your credit from many years ago can be removed off your credit so you can have a fresh start and a much higher credit rating.
The higher your credit the lower your payment and the amount of money needed to put down on a house. For some you may even have to wait a couple of months until after the bankruptcy has been discharge. Also if you are looking to buy a house you may even have to wait 2-3 years depending on the type of mortgage loan that you are trying to get.
This is the main reason why most people result to getting a rent to own home. The rent to own home transaction allows a buyer to finally purchase a home even though their credit score may not be able to get a traditional mortgage loan. While the bankruptcy is on your report you will be able to add equity into the property without having to pay more in appraisal costs due to the value going up.
Essentially you will be locking in the price of the home until you are able to purchase the home outright. All of the extra money that you put towards the purchase of the property will always be able to use for the down payment, as long as it is separated from the monthly rent obligation.
Now while this process is on the way you need a serious action plan to get the credit to where it needs to be before you purchase a home. Yes, not only adding credit cards to your credit will do the trick you need to also take advantage of other resources like adding a car loan or a short term personal loan.
These obligations will tell the bank that you are able to handle unsecured debt and you are ready to handle the biggest obligation of your life which is a mortgage.
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