Rapid rescoring is a process that I have talked about before. This tool is used within the lending community. A rapid rescore is the process of forcing an update on your credit report after you have paid down a credit card, settled on a collection or paid off a debt. Rapid rescoring is used when you are trying to get a loan and run into a snag due to credit issues on your credit report.

A professional loan officer will review your credit report. Once he/she has determined what you need to do to get your score up, you take action.  You will need to get documentation from the creditor that you have either settled/paid a collection, paid down a debt or paid off a debt. This information is sent to a 3^rd party credit reporting company that the lender uses. This credit reporting company will then go directly to the credit bureaus and force an update on your credit report.

Take note that when you take action with a creditor you will need documentation of this action. For example account numbers need to match and so does the creditors name. If this information does not match or make sense, the credit bureau will reject the rapid update.

This process normally can take up to 5 business days. Rapid rescoring is a great way to get the score you need to qualify for a loan in this tough lending market. I have seen credit scores go up as much as 30 points or so in one round of rapid rescoring. I have used this process many times over the years and got the results we needed.

Also be aware there is no guarantee this will work every time. We do however use a tool called credit expert that will give what if scenarios. This is risk based calculation software that will determine what your score will be if you take certain actions. This software actually is pretty accurate but in some cases did not produce the results we needed.

There is a cost associated with this entire process. So when you do this service expect cost to be involved. The cost will vary from lender to lender. Typically there will be a $15 fee for each trade line with each bureau. One update with a creditor could cost you $45.

Here is a good interview by John Ulzheimer on this process with CBS New York. I thought I would elaborate on what he already said in this interview….

Author: Mike Clover
CreditScoreQuick.com

This entry was posted on Friday, November 5th, 2010 at 9:37 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.