Learn How To Turn The Keys To Your New Home After Bankruptcy

Home ownership is a huge part of the American dream. Owning your home is a great investment - and sure beats paying a stuffy old landlord every month. However, home ownership is a difficult thing to achieve, especially if you have bad credit that includes a bankruptcy on your file. Overcoming the stigma that accompanies bankruptcy can be tricky, but nonetheless, there are thousands of borrowers who get past a bankruptcy discharge to rebuild their credit files from the bottom up - and later turn the keys to their new home and a brighter future.There is nothing more devastating to your financial outlook than to file bankruptcy, which is why any financial advisor will tell you to avoid bankruptcy at all costs. Sometimes, however, bankruptcy is the only solution that a borrower may have - especially if their assets are on the line. Notation of bankruptcy and debts discharged can be held on your credit report for up to ten years, in most instances. But you can begin the rebuilding process almost immediately upon discharge to regain both your borrowing reputation and borrowing ability.How To Rebuild Your Credit From The Ground UpAbout a month after your bankruptcy has been discharged, your credit report should reflect this status. Check your credit report to ensure that all accounts discharged during bankruptcy are noted as such, and promptly notify the credit bureau of any items that need to be corrected to reflect such a notation. The credit report should remedy the situation within thirty days by adding the appropriate comments next to the account.With your new status intact, you can now begin your financial renewal. Begin by establishing a checking account and a savings account to demonstrate your legitimacy to potential future lenders.You should establish at least two secured credit card accounts with two different credit card issuers. A secured credit card is one that has a deposit in the amount of desired credit backing it up in case of default on your behalf. You can typically get a secured credit card in any amount that you wish - most begin at as little as $300 and go all the way up to $10,000 or more, depending on how much credit you wish to establish. There is no need, at this stage, to have a larger account unless you simply want one - so two $300 secured credit cards will suffice. Use these accounts wisely, making timely payments while running a balance equal to thirty percent of your available credit each month, but no more.Moving Into Home OwnershipWithin a period of around one year, you should have added lots of points to your credit score, and be eligible for some smaller loans. Be a good steward of each small loan that you get - paying timely each month and well in advance when possible. Most borrowers happily find that within five years of bankruptcy discharge, they are able to obtain financing to purchase a new home and that their hard work was well worth the effort.Online Lenders Save You MoneyYou can save money while rebuilding your credit after bankruptcy by going with online secured credit card issuers and bad credit personal loan servicers. The Internet has become a competitive marketplace for lenders, and you can take full advantage of their competitive spirit when you obtain financial products online.