How to raise credit score in 8 months in order to buy home?

Question

I filed for bankruptcy in 2007, my current credit score is 640. How can I raise my credit score before purchasing a home?

Answer 1

You will have to be out of the BK for two years & plan on putting money down on the home.

Answer 2

You can raise your credit score by paying your bills on time, every month, for many months in a row, and for paying down the amount you owe.  If you make a payment on a credit card, and then use it to charge the same amount, you're not making progress, and you won't improve your credit score much.  The amount you owe has to go down a significant amount to have a significant effect.

Answer 3

One easy way to raise your score is paying everything on time and don't buy anything with loaned money (like a new car) or open new credit cards.  A trick a credit counselor told me was to make two payment on anything you can every month.  Not two full payments, but say your minimum payment by the due date, then $10 two weeks later.  

Answer 4

You can get an FHA loan 2 years from discharge date.  If you have re-established credit & are paying everything on time, your score should be high enough that you would not have a higher rate.  In 2009 the minimum down payment will more than likely be 3.5%.  A 640 middle score would get you the going rate today.  Do not open a bunch of new accounts.  That will lower your scores.

Good luck.  Pay everything on time, save some money & you should be fine.