Credit Needs some TLC? Can Rapid Rescore Help?

I had a client that was ready to close on a his home and of course the lender requirement was to pull credit one last time. To our surprise the current credit report showed an issue that was cleared up some time ago. Now what? Rapid Rescore! I found some answers with some research. You can do this your self however, the service is inexpensive so I suggest not wasting your time or have anxiety about and have your current lender perform the service. I found some useful information on this website:

http://www.finweb.com/banking-credit/improve-your-credit-score-with-a-rapid-rescore.html





Rapid Rescore

A rapid rescore is a process that will allow you to quickly change something on your credit report. Traditionally, if you notice something on your credit report such as a late payment, it could take months for it to be corrected. In most cases, you will have to wait at least 90 days before it will make its way onto your credit report. If you are trying to shop for a mortgage or some other type of loan, this will not be conducive to this process. If you need the loan quickly, you may end up paying a much higher interest rate because your credit score was lower than it should be. In times like these, using a rapid rescore can be very beneficial as it could potentially save you thousands of dollars in interest fees.

How It Works
There are over 200 companies that offer rapid rescoring services. These companies work closely with the three major credit bureaus and will be able to change something on your credit report within a few days. Unfortunately, you are not able to access these companies directly as a member of the general public. In order to gain access to a rapid rescoring company, you will have to go through another company. Companies that have access to rapid rescoring services are mortgage brokers, banks, and other types of lenders. This means that if you want to quickly change something on your credit report, you need to work with a lender in order to do so.

Cost
In order to complete this process, you will have to pay something extra to the lender that you are working with. However, typically the cost to have something changed is quite small. In many cases, you will pay less than $50 for this service. For such a small cost, it can make a huge difference in the amount of money that you pay. For example, if you are shopping for a mortgage, changing something on your credit report good lower the interest rate on your loan by 1 percent or more. This could represent well over $100,000 in savings over the life of the loan.

Who Should Use Rapid Rescoring?
If you have any mistakes on your credit report and you are shopping for a loan, you should definitely consider using a rapid rescore. If you have a credit score that is lower than 680, you could most likely benefit from the services that a rapid rescoring company could provide. If you are able to bump your credit score up to above 700, it will put you into a different category of borrowers, which will provide you with better interest rates