Refinancing your mortgage is one way to rebuild your credit,
particularly if you have recently declared bankruptcy. With a
poor credit history, you can find refinancing through a sub
prime lender. To rebuild your credit, make regular payments on
your mortgage and other bills. Then after two years, refinance
again for lower rates with your now good credit rating.

A Note About Sub Prime Lenders

Sub prime lenders offer B, C, and D credit, which means they
offer credit to high risk lenders. For taking on these
high-risk loans, sub prime lenders charge slightly higher
interest rates and fees.

Some sub prime lenders charge excessively high fees, but you
can screen these out by comparing mortgage rates. Online
mortgage lenders make this easy with their online quotes and
posted rates.

Applying For Refinancing

Applying for refinancing has been made easy with the internet.
The first step is to collect several financing offers, and sort
through them. Look for low fees and interest rates.

Once you have picked a mortgage lender, fill out the
application either online or request an application mailed out
to you. Once you have submitted your application, it will be
reviewed and processed. You refinancing should be completed in
about 6 weeks.

Getting Financing Approval

Getting approval for your refinancing application is a common
concern. While lenders approve more B, C, and D credit loans
today, you can also stack factors in your favor. Paying off
loans, closing unused credit card accounts, and making regular
payments on credit cards and other loans will help. Another
step is to put a note in your credit report explaining the
reason for past due bills, foreclosures, or bankruptcy.

Rebuilding Your Credit

The next step to rebuilding your credit is to make regular, on
time payments on your refinanced mortgage and other bills.
Making regular payments is the single fastest way to establish
good credit. Make the bill payment easy by setting automatic
withdrawals through your bank.

Refinance With Good Credit

After you have established a good credit history, apply again
to refinance your home for lower interest rates. If you
declared bankruptcy, wait at least two years to refinance.
However, if you simply had a series of late payments on your
credit, wait a year before researching refinancing options.


About The Author: Carrie Reeder is the owner
http://www.abcloanguide.com, an informational website about
various types of loans. To view our recommended sources for sub
prime mortgage lenders online, visit  this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml