Choosing a Bad Credit Mortgage or Increasing Your Scores?

Many of you seek a bad credit mortgage instead of doing the obvious – fixing your credit and increasing your credit score. There is a simple strategy to qualifying for a mortgage after bankruptcy

· Establish new credit by opening up a secured credit card
· Paying bills on time
· Eliminating expenses that cut into your disposable income
· Put away and save a sensible amount of disposable income for your down payment

After a bankruptcy discharge you only need 24 months of good stable credit to qualify for a home mortgage loan.

You may very well run into problems again with money – all of us do at some point but the lesson here is to learn from your mistakes. If you couldn’t afford it before, eliminate it; get rid of it because that will be another black mark on your credit report.

The biggest downfall with obtaining a healthy credit score is not being honest and upfront about your financial status. Here is how you can avoid credit problems when you don’t have money to pay bills on time;

· Call your creditor(s) and make a payment plan; if you cannot afford the payments they put forth, explain your circumstances and ask them the best plan they can come up with. This way it will not be reported as a late payment to the credit bureaus.
· Cut down on your monthly expenses during hard times – if you refuse to turn the cable off, just eliminate your premium channels for a month until you get back on your feet. That will probably save you $25-30 dollars off your bill.
· Same with your telephone bill; if you don’t utilize long distance you can eliminate it for a month or two and re-instate it later on.

A bad credit mortgage will not help you in the long run – in fact, most lenders have done away with these types of creative financing programs and after the downfall stemming from these type of mortgage programs they probably won’t return any time soon.
Your quickest solution to obtaining a home if you’ve suffered from bad credit is to clean up your credit reports and take a higher road to financial freedom. A bad credit mortgage will not do this for you.