For many borrowers on their way to the closing table rapid rescoring is a viable option to increase credit scores, lower interest rates and stay within their budget for their new home purchase.
Back in the day, most lending decisions were decided by people, but those days are rapidly disappearing. Most lending decisions use computers generated algorithms and consumer credit scores. As creditors tighten their qualification process, even minor errors can cost consumers thousands of dollars in higher interest rates and cause their application to be rejected.
Rapid Rescoring Can Improve Credit Scores in 72 Hours
Traditional methods for removing incorrect information from a credit file can take several weeks to several months to obtain results. Rapid rescoring is offered by credit reporting agencies and is used by mortgage lenders or brokers who are trying to assist their borrowers in raising credit scores to obtain better financing terms or loan approval. Rescoring services typically offer results in as little as 72 hours.
Credit Repair Scams
Consumers must be careful not to fall for quick-fix credit repair scams. Genuine rapid rescoring services are not offered to the general public. Currently legitimate companies who offer rapid rescoring only work with mortgage lenders and brokers directly. Consumers should use due diligence and research companies thoroughly before employing credit repair companies. Ask for references of past clients and check with local Better Business Bureaus.
How Does Rapid Rescoring Work?
- Consumers will need to submit proof that the information on the credit report is inaccurate. Occasionally a rescoring service will contact the creditor to obtain this proof, but asking for this extra service will delay the process significantly.
- Rapid rescoring can not remove accurate negative information from credit reports, nor can it speed up the process of a disputed account.
- Results can not be guaranteed. Just because a negative item has been removed from a consumers credit report, does not guarantee a consumer's credit score will improve. Sometimes the age of the item has a greater positive effect on an individual's credit score, than the outdated negative information of that item. Since little is known of how credit reporting agencies determine a consumers credit score, there is no way to predict what impact deleted information will have.
- The typical turn around time for credit rescoring is 72 business hours, but results could take up to two weeks, sometimes even longer.
- The fee for rapid rescoring services can range from $75 - $250 and up.
Although rapid rescoring is an option, it is always better to be proactive when it comes to personal credit and financial situations. Working with a mortgage lender or mortgage broker, even before searching for that dream home can save a buyer thousands of dollars and many hours of frustration.
Katrina Rief-Derrico - Katrina has over 19 years experience in the housing industry and is forever the student. Holistic health and wellness is her passion.
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