Rapid Rescore….. What is it?
Quite simply, it is what is says…. A rapid rescoring of the credit report with certain supporting documentation.
What is it not? Well, it isn’t credit repair as the term has been commonly used.
Rapid Rescore removes erroneous information from the credit report with solid supporting documentation in as little as 3 to 5 days. It takes place of the normal 30 day dispute that a consumer can do for themselves…. Only faster!
Here is how it works!!
Mortgage lenders use a third party company to pull credit from the Big 3 Credit Bureaus…. Experian, Equifax & Transunion. This third party prepares the data in a Mortgage Tri-merge format. That same company can update certain accounts that may not have reported recently or clarify an account that has been reported vaguely to the bureaus in an effort to satisfy underwriting requirements.
This same third party company can also take proper documentation to update credit card balances or remove an account that should never have been placed on the credit report in the first place. And once the data is updated, the FICO scoring model is re-applied(re-scoring) to give an accurate measure of credit risk. I have seen people with a 580 credit score jump as high as 650 by showing account balances paid down or after removing bogus collection accounts.With FHA Loans requiring a 620 now at most lenders and is rumored to go to 640 soon, every point counts!
This is an awesome tool in the hands of a loan officer who understands how the FICO score works!!!
And it can be a disaster in the hands of someone who doesn’t grasp the basics of credit scoring and doesn’t use all of the tools associated with the rescoring tool.
The DallasLoanGuy understands credit and credit scores…. And you can too!
Here is a link to a Free E-book About Credit. No gimmicks… Just free information about credit, credit scores, the Fair Credit Reporting Act, the Fair Debt Collections Practices Act and more.
"Your Dallas Mortgage Consultant"
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!