5 Tips for Rebuilding Your Credit After Bankruptcy

While getting a mortgage at the Lake of the Ozarks after going through bankruptcy is challenging, it's not impossible. Your dream of owning your own home is still possible with a little hard work to build your credit back up. There's no quick fix for improving your credit over night, but following these steps can get you going in the right direction.

1. Open a New Credit Card Account.

Start by opening a secured credit card. They are typically easy to get and are a great way to rebuild your credit. You provide the bank with a deposit and then you are issued a card with a limit equal to that deposit. While the card works just like any other credit card, you charge expenses and then get sent a bill that you pay each month. The key here is to obtain a card from a quality bank and stay away from offers with extreme interest rates.

2. Pay Your Bills On Time.

Most people think about big bills such as rent, car loans and credit cards affecting their credit score, but it's also important to pay the small things on time. Utilities, medical bills, library fines, cell phone plans, gym memberships and traffic tickets can all impact your credit score. If you're regularly late on payments, you could be reported to a collection agency, which will lower your score. Even if you pay off the collection, it will remain on your credit report for up to seven years.

3. Apply for Credit Cautiously.

When you apply for new credit, do so with caution. Any new applications will typically result in a "hard inquiry" on your credit report. While the impact varies from person to person, hard inquiries can negatively affect your credit score. Opening several new lines of credit within a short time frame can indicate that you're having money troubles, and that can negatively affect your credit score.

4. Don't Close Old Accounts.

While it may seem like closing accounts would be a good idea to reduce the amount of debt you can rack up, closing credit accounts reduces the amount of credit you have available, which increases your overall credit utilization rate. This can result in a lower credit score. It's best to keep the account open, but if you are tempted to overspend, you can cut up the card.

5. Monitor Your Credit Closely.

Monitor your credit closely for accurate information. Make sure that all the accounts that were discharged in the bankruptcy are accurately reported as "Discharged in Bankruptcy" as opposed to stating "Charge Off" or any other inaccurate information. Any mistakes found should be immediately reported to the credit reporting agency.

After you've completed the required waiting period for the loan of which you want to apply, and you've rebuilt your credit, talk to a mortgage professional at the Lake of the Ozarks about your home financing options. I'm here to work with you every step of the way through the mortgage process. Give me a call at 573-746-7211 today!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

5 Tips for Maintaining a Good Credit Score

One of the most important aspects of applying for a mortgage is having good credit. If you have bad credit, you'll need to work on improving your score in order to get a better interest rate, and in some cases to even obtain a mortgage loan at the Lake of the Ozarks at all. If you have good credit, then it's important to maintain that credit rating. While it can take time and patience to improve your credit score, it's unfortunately easy to mess it up. Keep reading for some tips to help you maintain a good credit score from your Lake of the Ozarks mortgage lender.

1. Setup Payment Reminders. 

One of the biggest factors contributing to your credit score is making all your payments on time. If you're one of those people that has too many things on their plate (which is most of us), consider setting up payment reminders so that you don't miss any payments. Depending on the type of bill, you have other options as well. Some companies will let you schedule a payment for the future instead of having to wait until payday to pay it. In addition, you may be able to setup automatic withdrawal or charge. This is a great option as long as you know you'll have enough money in your account to cover the bills.

2. Keep Credit Card Balances Low. 

Even if you pay your credit card bill on time each month, having high balances on your credit cards can affect your credit. Keep the balances on credit cards and other "revolving credit" as low as possible. If you can pay off your cards in full each month, that's the best way to go. Then you don't have to worry about high credit card rates increasing your balance. Keep your credit cards under control and maintaining your credit score will be a lot easier.

3. Don't Move Your Debt Around. 

The most effective way to improve your credit score is by paying down revolving debt. Rather than moving your debt around, for example consolidating it onto one card or a personal loan, you should work to pay it down. Owing the same amount, but having fewer accounts may actually lower your credit score. Work on paying your smallest balance first and work your way around the rest of the payments. Moving the debt from one place to another isn't going to decrease the amount you owe. Paying off debts will take time, but you're sure to see your credit maintaining and eventually improving.

4. Don't Open & Close Credit Accounts. 

The more available debt you have, the more likely you are to put your credit score at risk. Each time you open a new credit account, your credit score gets dinged slightly. Opening a new account also lowers your average credit age, another contributing factor to your credit score. To maintain a good credit score, only open new credit accounts when absolutely necessary. In addition, you don't want to close any unused accounts. After time, that account will drop off your credit report, which can shorten your average credit rating.

5. Watch Your Credit Report. 

While you may be doing everything right in regards to your credit, mistakes can be made. Errors on your report could lead to a drop in your credit rating. In addition, identity theft and credit card fraud can also lead to mistakes on your report. Therefore, it's important to check your credit report regularly and look for any issues. The sooner you can correct them, the easier it is to maintain a good credit score.

If you have your credit in order and are ready to apply for a home loan at the Lake of the Ozarks, I'm here to help. As your local mortgage professional, I'll work with you every step of the way. I'll discuss your Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve. Give me a call at 573-746-7211 today!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

7 Tips for Building Your Credit Score

Your mortgage lender at the Lake of the Ozarks uses your credit score to determine your financial trustworthiness. Therefore, your credit is a key factor in getting your Lake of the Ozarks home loan. Keep in mind that your credit score can't improve overnight; it takes time and planning. Even if you aren't thinking about buying a house for a couple of years, now is the time to start thinking about your credit score. Here are 7 ways to start working on improving your credit score today!

1. Keep Your Credit Card Balances Low.

One of the major factors in determining your credit score is your available credit, and how much of that available credit you're actually using. The smaller the percentage the better, with the optimum amount being 30% or lower. In order to boost your credit score, be sure you are paying down those balances and keeping them low. Another thing you might not know is that even if you pay your balance off in full each month, you might have a higher utilization rate than you think. Some issuers report the balance on your statement to the bureau. Therefore, you should see if your credit card issuer will accept multiple payments throughout the month in order to get that statement balance down.

2. Consolidate Your Credit Card Debt. 

Do you have multiple credit cards with small balances on each one? A good way to improve your credit score is to get rid of those nuisance balances completely. Another factor in determining your credit score is simply how many cards you have with balances. Therefore charging $20 on one card and $30 on another instead of using the same card can actually hurt your score. Gather up all those cards you have and pay off all the small balances now. Then select one or two go-to cards to use for everything from now on.

3. Don't Close Accounts or Open New Ones. 

Closing unused credit cards isn't going to raise your score. In fact, this could cause your utilization rate (mentioned in #1) to dramatically increase. Say you have two cards, each with $2,000 in available credit, so you have a total of $4,000 of credit available. The one card has a balance of $1,000 and the other a balance of zero. By closing the one credit card, your utilization rate has jumped from 25% to 50% and now you're ratio is over that optimum threshold. On the otherhand, you also don't want to just open a number of new credit cards that you don't need just to increase your available credit and reduce the utilization rate. This approach could backfire and actually hurt your credit score. Plus a rapid account buildup can look risky if you're a new credit user.

4. Don't Try to Remove Good, Old Debt from Your Report.

It's a myth that old credit is bad for your credit score. Once a debt is paid, such as a car loan, many people will call to try and get it removed from their credit report. However, old debt, as long as it is good debt that you've handled well and paid as agreed, is actually good for your credit. Plus, most of those debts will disappear after 7 years anyway. Leave old debt and good accounts on your credit report as long as possible. It shows that you are responsible, and can/will pay back the money that you borrow for your mortgage loan at the Lake of the Ozarks.

5. Always Pay Your Bills on Time.

If you're thinking about purchasing a home at the Lake of the Ozarks, you might be scrambling to save money. Don't let that savings spree get in the way of paying your monthly expenses. Be sure to pay all of your bills on time. If you're bad about paying your bills or paying them on time, it damages your credit and hurts your score. Even if you have a large sum of money in savings, a drop in your credit score due to not paying your bills on time could cause issues with your home purchase.

6. Avoid Showing Risk. 

Sometimes one of the best things you can do is avoid doing something that could sink your credit. Two of the biggest issues including missing payments and suddenly paying less (or charging more) than you normally do. You don't want to do anything that would indicate risk. For example, don't make any large purchases on a credit card or use a credit card in a way that would indicate financial stress, such as at a pawnshop or to hire a divorce attorney. It's important that your credit report reflects that fact that the bank loaning you money isn't taking a huge risk that you won't pay it back. They need to trust that you can pay back your loan in full, with timely payments.

7. Limit Your Rate Shopping Time Period. 

If you're searching for the best rates on a home loan, or any other loan for that matter, be sure to do all of your "shopping" within a specific time frame. FICO scores distinguish between a search for a single loan and a search for many new credit lines. This is in part determined by the length of time over which the credit inquiries occur. The closer your inquiries are together, the better it looks on your credit score.

In general, building your credit score is about fixing errors in your credit history and then maintaining a consistent, good credit history from there on out. Rasing your credit score after a poor mark or building credit for the first time will take patience and discipline. If you're thinking about applying for a home loan at the Lake of the Ozarks anytime soon, contact me at 573-746-7211. As your Lake of the Ozarks mortgage lender, I'll work with you every step of the way!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.