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Going through a foreclosure is definitely not a walk in the park for anyone. Apart from having to go through the nerve-wrecking experience of wondering if you would still be able to keep your home, being issued a notice of foreclosure can have some damaging effect on your credit score and standing. This would, in turn, greatly affect your ability to take out any form of finance aid in the future.

While the most ideal way to ensure that this not happens is to make sure that you would never have to experience this is to make the payments on time to your creditors and other financial institutions with whom you have outstanding debts with, the current financial situation being faced by the average American in the United States has made this highly unlikely to achieve. Due to the current financial crisis experienced all over the world, prices of even the most basic commodities have now been on a steady rise. Unfortunately, the salaries received by people in the United States have not. As a result, more and more Americans have now been subjected to the harsh realities and experiences of going through a foreclosure.

The first thing on the minds of anyone who has gone through a foreclosure is how to pick up the pieces and re-establish their credit score and ranking. If you are one of the thousands of Americans thinking of the same thing, here are some steps to help you repair the damage inflicted by a foreclosure experience on your credit score and ranking.

Know Where You Stand

The very first thing that you would need to repair your damaged credit score and ranking is to first determine the severity of the damage. Credit reports are public records, meaning that you can easily request for a copy to help you know how to deal with your damaged credit score and standing resulting from a foreclosure. For a minimum charge, you can be able to get a copy of your credit standing over the Internet or have it delivered to your doorstep via regular mail.

Seek Sound Advice

Unless you have some solid background in accounting, reading and understanding a credit report can be rather difficult to do. This is why it is extremely important to seek the advice of someone who would be able to explain to you the different figures and terminologies provided in the credit report that you have either downloaded or have mailed to you. If you have the budget to seek the advice of a professional accountant or financial adviser, it would be a good investment on your part to seek their advice since they would be in the best position to provide me the right steps to take to get you back on your feet. You can also find a number of helpful articles over the Internet to guide you on how to properly read through your credit report to get yourself a foothold on how to go about repairing your credit score and standing.

Do Not Delay

Repairing your credit score and standing does take some time to happen. So, the sooner you can begin repairing your credit score and standing, the sooner you can get it back a good standing with creditors and other financial institutions. Slowly pay back any other debts that you may still have existing. Having a good credit standing does not necessarily mean that you need to wipe out all of the existing debts right away. In fact, it would be a relief on your part to discover that you do can have a few negatives on your credit reports and still have a good credit standing to allow you to get financial aid in the future. The important thing is that you have enough positive credit in your credit report to neutralize the effects on any negative credit in your report. This is a lot easier than you might think because of the fact that all financial activities that you do every day has an effect on your credit standing. Some of these include the amount and frequency of the premiums that you pay for your insurance policies and even the position you have at work.

Keep Your Credit Cards

A common misconception by many people who are trying to pick up the pieces after a foreclosure is to cut back on the number of credit cards that then have under their names. In reality, doing this would only lower your credit score and standing even further. This is because when you minimize the number of credit cards that you keep, it decreases the total credit limit that you currently have. This high credit limit, which is a form of unsecured debt, can actually help you rebuild your credit score and ranking in no time. This is because keeping your high credit limit would have a different effect on your debt to credit ratio, which is one of the things that creditors and financial institutions look into when they check your eligibility for a loan and mortgage that you may be applying for in the future. The debt to credit ratio in your credit report provides creditors and financial institutions on the amount of money that you have borrowed previously and the amount of interest that is being applied onto the amount that you have loaned. In order to ensure that you have a good credit standing, your debt to credit ratio should be between 10 and 30%.

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Article Source: Stop Foreclosure Assistance - Picking Up the Pieces After a Foreclosure Experience