Rapid Rescoring - Rapid Rescoring is used by Mortgage Brokers to quickly raise a low credit score. An applicants credit data is analyzed for inaccuracies, request for written correction of erroneous information contained in the files are ordered, and borrowers are advised on how to restructure specific open credit lines to raise their credit scores. Some applicants with the cooperation of the credit reporting bureaus (Equifax, Experian, and TransUnion) may legally raise their credit scores anywhere from 40 to 100 points or more in one week or less. A higher credit score helps borrowers to qualify for lower mortgage rates, lower fees and more conducive terms overall, often saving the borrower thousands of dollars in costs.
Rapid Rescoring is often done through a Third Party consumer credit company for the sole purpose of the loan. It is necessary to contact the individual credit bureaus (Experian, Equifax, TransUnion) to make a permanent change to your credit report.
When using a Rapid Rescore to improve your credit, it is important to follow the exact instructions of the credit company and your loan oficer to ensure that you do in fact improve your score and do not decrease it further.
Documentation to prove information reported is incorrect is necessary.
If rapid rescoring fails you can use the services of a credit repair compnay to raise your score. This does however take more time than the rapid rescore.
There is a cost to rapid rescoring as the third party consumer credit company charges the broker for each tradeline to be rescored.
Very good documentation will be needed in order to rescore. Normally you will need a letter from the creditors specifically stating that the information is different from that which is being reported. Other documentation, reciepts, etc, may be acceptable but unless they clearly overrule what is being reported a rescore may be difficult.
All documentation from the creditors must be on the creditors company letterhead, and signed by a representative of the organization.
In some cases, deletion letters from the creditor will not be accepted if the date of the letter is showing older than what is reporting on the credit report. It must be dated within 90 days.
Rapid rescoring can mean the difference of thousands of dollars saved if you are borderline on your FICO score and rescore higher.
There is a possibility that a rapid rescore could cause a score to go down. This is due to human error, or inproper post score calculations.
Bankruptcy filings are not considered acceptable documentation for rapid rescore. You will still need to attain letters from the unsecured property claims such as credit cards and collections that indicate they've been removed via bankruptcy.
Rapid Rescoring can be a very useful tool. In many cases, reducing certain account balances below 50% of the limit in combination with a rapid rescore, can result in savings of thousands of dollars over the life of a mortgage loan. It can also make the difference in qualifying or not qualifying for a loan.
Mortgage brokers are often able to use Rapid Rescoring to save loans. Make sure you speak with your mortgage professional about this feature.
Rapid Rescoring - A rapid rescore of your credit score is just what is sounds like. If your credit report contains inaccurate information it can harm your score. Once the erroneous information is identified and removed or corrected, a rapid rescore can be done. This may be able to raise your score much faster than the traditional way of waiting for credit bureaus to update their information.
Completing a rapid rescore will involve additional fees. Though it may appear expensive to have it done, the money that you will save over the life of the loan will more than compensate for the fees charged.
You may also use a rapid rescore if you have paid off certain debts of your own, not just for incorrect information on a credit report.
In order to quickly and accurately process a Rapid Rescore you will need documentation of the innaccuracy. All documentation should be on the creditor's letterhead and reference the exact account number and an explanation of what exactly needs to be corrected.
There is no guarantee that having a rapid rescore done will increase your credit scores.
The typical fees for a rapid rescore is $25 per credit line per credit bureau.
Sometimes consumers mistakenly assume that ANY negative mark can be erased through Rapid Rescore, even if the negative mark is accurate. The truth is, you must have full documentation to have the negative entry removed.
Consumers often get confused over a credit supplement verses a rapid rescore. A credit supplement is often times obtained to fill in missing or incorrect information on the report. However, a supplement does not change the scoring and cannot be used for a rescore. Your report can only be rescored with documentation directly from the creditor that contradicts the information on the report.
A rapid rescore will be done based on your word as the client as well as paid by you, being as upfront with your loan officer as possible can save alot of time and money...Rapid rescoring is not a cureall and can actually lower a score...Have good documentation in regard to anything being disputed...