Many people have inaccurate information on their credit reports which can cause a lot of long-term pain and frustration such as not qualifying for a home loan or paying far too much interest if they do qualify. However the time-frame can be dramatically reduced through companies with special relationships with the credit reporting agencies and who specialize in rapid credit re-scoring.
The rapid re-scoring company can only be accessed by mortgage lenders and brokers and not by the general public. This means that if you want to have your credit report rapidly re-scored you must ask your loan officer or mortgage broker to do it for you. Those re-scoring companies usually charge a fixed fee for each item they fix.
Some people suggest that if you are one of those people who has a credit score that is less than 680, then you may want to try for a rapid re-score if you plan to apply for a mortgage within a month. But its still better to try and fix the problems at least six months before you even apply for a mortgage loan.
There are things rapid re-scoring can accomplish for you and things it can’t:
1. You can’t communicate with a rapid credit re-scoring service:
This service is usually done by smaller credit reporting agencies. They are the liaisons between the bureaus and the banks and they don’t have the ability to work with consumers directly.
2. They cannot make a promise to help your score:
Home Buddies has written a couple articles on this topic. If you have a short credit history, removing any item, including bad ones, from your report can lower your score. Having some significant credit history is a big part of the mix.
3. They can’t perform magic and they cannot delete legitimate items:
They can only work on items (derogatory marks) that have not been reviewed by the credit bureaus. You must be able to prove that an error was made.
4. They can help with errors only if you have proof
This service is intended for people who have already repaired their credit. You must have it in writing from your creditor addressing the mistake. If they have acknowledged it but you don’t have the paperwork, some rapid credit re-scoring services can get it but the service is not as “rapid”.
A creditor may currently be reporting a high balance on your account (ie from a credit card). This high balance may be keeping you from being approved for a better mortgage rate. If you pay down the balance electronically right now, then you can have the rapid re-scorer renew your score in 72 hours. This will then essentially show that the creditor has a mistake (because you no longer have that high balance), and you can now show the correct current balance sooner instead of having to wait a long time to have it show up on your credit report.