When you go through a Santa Cruz foreclosure, your credit score drops considerably. The good news is that you can rebuild your credit. Here are a few tips to help:
1. Create a budget. A budget lets you see exactly how much money you have to spend each month. It also helps you track where you spend your money. Put together a budget that fits your lifestyle and then stick to it.
2. Build an emergency fund. You never know when an emergency will happen. When you’re prepared for a financial emergency, you’re better protected from financial problems.
3. Repair your credit. Review your credit reports from all three credit bureaus. Dispute any errors you find. Removing errors from your credit reports help improve your credit.
4. Establish new credit. This can be tricky after a Santa Cruz foreclosure. New credit will give you a chance to prove you can manage debt. However, you certainly don’t want to find yourself owing more than you can possibly pay. If you can get a traditional credit card, your interest rate will be very high, so choose and use your credit cards wisely. An alternative is to apply for a secured credit card, which requires that you put money down as a deposit before credit is extended to you. Use your card regularly but lightly, and you will see your credit start to improve as you make consistent payments.
5. Have patience. It takes time to rebuild your credit. Don’t expect your credit score to be in the good or excellent range within weeks or even months after your Santa Cruz foreclosure. It’s going to stay on your credit report for seven years, so there’s no need to rush.
A foreclosure is not the end of the world. Let me help you plan for and find your next home so it fits your budget. Give me a call at 831.662.6522 or for additional information visit my website at www.MySantaCruzRealEstate.com.