Bankruptcy Articles Mortgage Loans after Bankruptcy - Ways to Boost Your FICO Score Tip! Forward these documents along with the discharge to all of the credit-reporting agencies (listed below) requesting that each creditor included in the bankruptcy be updated to properly reflect a zero balance with the status included in bankruptcy. After a bankruptcy is discharged, many lenders will offer you a home loan. In most cases, these lenders do not require new lines of credit or a high credit rating. Buying a home with good or fair credit has its advantages. These individuals likely obtain better mortgage rates and qualify for a range of home loans. Here are a few tips on ways to raise your credit score before applying for a mortgage. Pay Creditors on Time The habit you adopt for paying creditors can have a negative or positive effect on your credit report. If bills are regularly paid on time, your score will soar. Yet, paying a bill one day late may decrease your credit score by as much as 10 points. If possible, pay bills a couple of days before the due date. Waiting until the due date to pay credit card bills will not have a negative effect on your score; however, you may gain a few extra points with early payments. Maintain Low Credit Card Balances Following a bankruptcy, it is essential to open a new line of credit. This can be in the form of a credit card, gas card, retail store card, etc. If applying for a new credit card, avoid high balances. Ideally, consumers should keep credit cards at approximately 25% of the limit. Keeping a large balance will lower your credit score. Stay Away from Credit Inquiries Although credit inquiries are inevitable, especially when trying to re-establish credit, avoid applying for too many credit accounts. Many consumers are unaware of the damaging effects of inquiries. However, one inquiry can lower your credit score by 10 to 12 points. Because credit scores are already low following a bankruptcy, it is very important to keep inquiries to a minimum. Carefully Monitor Credit Report Try using one of ABC Loan Guide's Recommended Mortgage After Bankruptcy Lenders. Tip! When considering your file for bankruptcy, it is important to weigh the sides between chapter 7 and chapter 13. Which one will do you more harm than good when it comes to solving your financial problems? If attempting to boost your credit score, regular credit report monitoring is important. Homebuyers hoping to get approved for a prime rate mortgage will need a credit score of at least 680. After a bankruptcy, it will take time to achieve a high credit rating. However, if you take immediate steps to boost your score, it may be possible to get approved for a low rate mortgage within 24 months. View our recommended lenders for Bad Credit Mortgage Loans. Also, view our recommended sources for a Free Credit Report Online.