Perhaps that was a hard time of your life and it dragged you into bad credit scores. Probably, now you have learned from your mistakes and practicing hard to improve your financial backup. Even then, if you apply for a mortgage, that bad financial history will create some trouble. That may sound terrible! But it is true that once you get trapped into bad credit scores, you will face issues many times in your life.
However, it doesn’t mean that now you cannot avail a mortgage in your lifetime. The conditions may be little hard, you may have to make larger deposits and pay higher than the standard interest rates but at least there is a way to move ahead.
What reflects a poor credit history?
- Some county court cases that are filed against your name.
- Missed payments for mortgage, loan or credit card.
- Declared bankrupt at some stage of your life or had some IVA or other debt management plans.
The fact is that you can also rebuild your credit ratings and it will help you to avail best mainstream landing plans from high street banks. Yeah! It is definitely good to learn from mistakes and then make improvements.
What are the best ways to improve your credit ratings even after bankruptcy and IVA?
- The very first thing that you can do is find a permanent and stable source of income that can assist you to handle your current financial needs.
- Generate as many as possible sources for income and boost your savings while improving your ability to make loan payments on time. Make saving your priority instead of considering it an option.
- Once you have improved your collection in a savings account then it is good to move some lump-sum amount to a term deposit that can help you to avail a loan in future.
- After bankruptcy, it is not good to apply for too many credit applications; it may decay your market value.
- Prefer to make all payments on time so that you can create a new and healthy financial history.
- You can check some credit repair services that are provided by trusted professionals online.
- IVA generally works for 5 to 6 years and after that, you can think about mortgage even if you were bankrupt in the past.