Realistically how soon can low scores improve?

[madredejames]

My husband and I have had a history of financial problems but are turning things around. We had a Ch 7 bankruptcy in 2005 and some negative items after that until about 2007. So the bankruptcy won't be off the CRs until 2015 and other items in 2014.

My current scores as just pulled by mortgage broker are Equifax Beacon 566, Transunion 571 and Experian 603.

I have two credit cards with a total credit limit between the two of $800. I had been using most of the available credit, but recently paid it down to where I now have over $700 available credit.

I'm trying to get to a 620 to qualify for an FHA mortgage this summer. How possible is this?

Thanks

[llecs]

It's possible, but it'll take a lot of effort...but it'll be worth it.

I recommend posting in Rebuidling Your Credit board and list out your negatives, especially the ones post-BK. There are some steps you can take to get them legitimately removed. Also, get on a budget and make sure you are never late again. A new late, even a 30-days, can lower your scores for more than a year and keep you out of contention for a mortgage for that long.

Per the CCs, pay one to $0 and get the other to report less than 10% of your CL (for max points).

Also, if interested in FICO scoring, I recommend pulling both FICO scores now. You'd want to see if they match with your lenders. Per TU, some lenders use one version of FICO and others a different version. It would be good to know and prepare now.

[JayRizzo]

Right!  First, work on what needs to be cleaned up before spending additional money on score numbers -- that will come last when you've done some leg work on repairs. 

[Anonymous]

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@llecs wrote:

It's possible, but it'll take a lot of effort...but it'll be worth it.

I recommend posting in Rebuidling Your Credit board and list out your negatives, especially the ones post-BK. There are some steps you can take to get them legitimately removed. Also, get on a budget and make sure you are never late again. A new late, even a 30-days, can lower your scores for more than a year and keep you out of contention for a mortgage for that long.

Per the CCs, pay one to $0 and get the other to report less than 10% of your CL (for max points).

Also, if interested in FICO scoring, I recommend pulling both FICO scores now. You'd want to see if they match with your lenders. Per TU, some lenders use one version of FICO and others a different version. It would be good to know and prepare now.

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This is very beneficial to do now so you can compare.  After you've made changes to your accounts your scores will be different.  Pulling the scores now allows you to see if they match.  Very helpful advice.

[FicoTron]

at the percentage rate you are going to get with a 620 score, you would actually save money in the long run by renting for the next 3 years until the bankruptcy is negated, get your score over 700, and go from there.