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.Mortgage brokers are often able to use Rapid Rescoring to save loans. Make sure you speak with your mortgage professional about this feature.
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.
All documentation from the creditors must be on the creditors company letterhead, and signed by a representative of the organization.
Rapid rescoring can mean the difference of thousands of dollars saved if you are borderline on your FICO score and rescore higher.
When using a Rapid Rescore to improve your credit, it is important to follow the exact instructions of the credit company and your loan officer to ensure that you do in fact improve your score and do not decrease it further.
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.
It is important to note that although Rapid Rescoring is a great tool there is no guarantee that the borrowers FICO score will increase beyond what is needed to fund the loan.
Documentation to prove information reported is incorrect is necessary.
If rapid rescoring fails you can use the services of a credit repair company to raise your score. This does however take more time than the rapid rescore.
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.
There is a cost to rapid rescoring as the third party consumer credit company charges the broker for each tradelines 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, receipts, etc, may be acceptable but unless they clearly overrule what is being reported a rescore may be difficult.
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.
There is a possibility that a rapid rescore could cause a score to go down. This is due to human error, or improper post score calculations.
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