What Is Rapid Re-scoring?

Boca Raton, Fl –We all have heard of Bill Fair and Earl Isaac
that began in the 1950s, but only in the last ten to fifteen
years, mortgage industries have been relying on the individual
person’s credit or “FICO” score to validate a borrower’s
creditworthiness
Years ago, prior to the widespread use of FICO scores, it was
easier to respond to questionable entries on one’s credit
history and to clear up misinformation A loan officer could
plead one’s case immediately with an individual who actually
reviews the application By doing this, the loan officer was
often able to save the loan from denial or a
less-than-attractive loan package Today however when going
through the mortgage loan process and one discovers outrageous
information on their credit report, it has become very difficult
or almost impossible to clear up misinformation on one’s credit
report in time to increase their credit score and secure a
impressive loan
A consumer and mortgage lender can clear up misinformation on
their credit report by working with all of the three main credit
bureaus This process can take anywhere from thirty to sixty
days to clear up bad information, which maybe too long to save a
loan or impressive interest rate
Now lenders have a new option to offer to their consumers when
wait time is not a factor in securing an impressive loan It’s
called rapid re-scoring service Rapid re-scoring is NOT credit
repair Rapid re-scoring service offers resolution to damaging
credit information (as long as it is correct) within forty eight
to seventy two hours
What Rapid re-scoring services can do is contact the creditor
who has reported data that you can prove is incorrect, point out
the mistakes and gets a “universal data correction form”
completed by the creditor, and submits the form directly to the
three main credit bureaus for immediate correction of your file
Your credit score is then recalculated A substantial increase
in your credit score can end up saving you thousands of dollars
in interest over the life of your mortgage
Rapid rescoring simply gives you a better chance than going
though the “big three” yourself and waiting up to two months for
an answer This service is not free and can cost a couple of
hundred dollars, but maybe money well spent
This service at this time can only be arranged through your
mortgage lender and is not guaranteed Depending on your credit
report something else could outweigh the error that was removed
So as always it is better to check your own credit report (twice
a year) and not wait until the last minute to find out errors
This topic was researched and compiled by Barbara Lafferty, a
certified financial counselor at Debt Management Credit
Counseling Corp (DMCC) in Boca Raton, FL The article was edited
by Pete Glocker of DMCC
Pete Glocker is employed in the Education and Charitable
Services Department at Debt Management Credit Counseling Corp
(“DMCC”), a 501c(3) non-profit charitable organization located
in Boca Raton, Florida Pete graduated from Florida Atlantic
University with a BA in Multimedia Journalism and is an
experienced web producer for Tribune Interactive products
Sun-Sentinelcom and SouthFloridacom DMCC provides free
financial education, personal budget counseling, and debt
management plans to consumers across the United States Debt
management plans offered by DMCC help consumers relieve the
stress of excessive debt by reducing credit card interest rates,
consolidating and lowering monthly payments, and stopping
collection calls and late fees DMCC financial counselors can be
reached for free education materials, budget counseling and debt
management plan quotes by calling 800-863-9011 or by visiting
wwwdmcccorporg Pete Glocker can be reached by email at
pete@dmcccorporg

Tags | bureaus, increase, lender, loan, misinformation, mortgage, officer, option, process, substantial, years