Foreclosure can do a number on your credit rating but if you’ve been through a foreclosure all is not lost, you can rebuild your credit and eventually get back to where you were before your financial troubles started.  True, a foreclosure will stay on your credit report for seven years, however, in this day and age foreclosures are becoming so common that they don’t mean quite as much as they used to.  That’s not to say that there’s nothing to worry about, a lender still doesn’t like to see a foreclosure on anybody’s credit report.

After your foreclosure, you’ll notice that your credit scores have gone down significantly and it usually takes a couple of years for them to get back up to where you can qualify for a conventional mortgage.  During this time you have to batten hatches and take care to make sure that you don’t have any other negatives creeping up on your report.

You’ll want to be sure to get all your other payments in on time.  This is critical to rebuild your credit score.  Also, you want to keep a watchful eye on your  credit report because sometimes things can be reported erroneously and you want to be sure that what is on the report is what actually happened.  If you find something that is incorrect contact the credit reporting agency directly because they can take the action to get your credit  report fixed.  In, fact they have to take some action within 30 days when you file a dispute.  Of course, if you are going to dispute something you’ll need to have the appropriate documentation to prove that it is incorrect.

Directly after your foreclosure, you really want keep an eye on what goes on your credit report in regards to the foreclosure itself because the details could be reported inaccurately and it could make a huge difference in your credit rating.  You are also allowed to put in an explanation and you should do so making sure that it is a permanent part of your records so whenever you go for credit, the lender will be able to see your explanation regarding the foreclosure.

Another thing to be careful of when rebuilding your credit after foreclosure is your credit card debt.  You want to avoid, if at all possible, running up your credit card balances. Try to keep the balances to less than 10% of your limit, or better yet, pay them off each month.  If you do this you will not only save an interest but you will also have positive effects on your credit score.

Rebuilding your credit after foreclosure isn’t an easy task but it’s something that you need to work at if you want to own a home and enjoy the benefits that haviing excellent credit reaps.  Making sure to pay your bills on time and not taking out loans or running up your credit cards to excess amounts will go a long way to getting you back on track.