‘Rapid rescoring’ or simulations can be quick credit score fix
That's unfortunate, because anyone who's looking for the most favorable interest rates and terms in 2018's rising interest rate environment ought to know at least the basics about them -- especially if their current score puts them near a break point between getting a better deal or qualifying for a loan altogether.
Here's a quick primer. Say you spot one or more errors in your credit reports -- maybe an account you've paid off in full but is still being reported as open and delinquent or a collection-account issue you've settled with a creditor but is still reported as ongoing. Both are potentially significant negatives for your credit score but if you have documentation, you can show they're out of date.
You could begin to fix it via the standard process of getting them corrected by asking the creditors involved to request the national credit bureaus to amend your files.
But fixing the errors directly with the credit bureaus could take weeks. Enter rapid rescoring -- a process that frequently can get the erroneous information corrected in as few as two to three days. It works like this: You provide the documentation about the accounts to your loan officer, then request a rapid rescore using the loan officer's mortgage credit-report vendor. The vendor's staff will then verify your documentation with the creditors involved and provide the corrected information directly to the credit bureaus.
The updates should show up quickly on your credit files, allowing the vendor to supply a new and more accurate credit report to your lender along with a new -- and typically higher -- credit score.
But rapid rescoring is not for everyone who seeks a quick score boost. For example, if the negative information depressing your score is accurate, it won't help. Then there's the expense. Rescoring can cost
The expense of rapid rescoring is why some lenders are reluctant to raise the subject with certain applicants.
Here's another valuable mortgage credit tool you should know about. If your score isn't quite what you need but the information in your files is accurate, your lender should be able to obtain a "what if" simulation through its credit vendor. Using a proprietary model marketed by
Bottom line: Be aware of these options. When you apply for a mortgage, you're not necessarily locked into your score. You just might be able to do better.
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