Rapid Rescore May Increase Your Credit Score Fast

Imagine this — you are getting ready to close on your home loan when your loan officer calls to say your credit score went down 20 points from when they originally pulled your credit. A 20 point decline means the difference between putting 10 percent down on your loan to now having to come up with 20 percent. Unfortunately, you don’t have that extra money because you scraped the initial 10 percent together and now you are tapped out. What are you going to do?

Your loan officer says, “Let’s do a rapid rescore to get your score back up.” If you are like most people, you have no idea what he is talking about nor do you even know what a rapid rescore is or if it will even help you. We are here to tell you it does work but you need to know the in’s and out’s of this procedure before you agree to have it done.

What is Rapid Rescore?

Rapid rescoring is just what you might think it sounds like, a rapid way to adjust your credit score. What might take 30 days or more, can take 3 to 7 business days. A rapid rescore is essentially an immediate updating of your credit file.

If you try to dispute a legitimate error on your credit report with the credit bureaus, they have 30 days to investigate the dispute and get back to you with their answer. This is far too long to wait if you are trying to finalize a mortgage loan when there are contractual deadlines that need to be met. If you have to wait for the credit bureaus to get back to you in 30 days, chances are your whole deal will probably fall apart.

So, instead, what your loan officer will do is provide the proof to the credit bureaus that the errors are bogus and have them immediately recalculate your credit score. This can all be done in a matter of a few days.

Disputing erroneous information is not the only way you can increase your credit score. Say for instance you have a high balance on one of your credit cards, your loan officer can run what is called a “what if” simulator. Basically, this mathematical simulator used by mortgage companies can determine “what if they paid off their credit card, how much would this increase their score.” If the loan officer sees this might increase your score enough to get you that better loan, they can suggest you pay off this credit card or pay it down below 30 percent of your credit limit. Once you pay down your card, you can print off your new balance and this can be submitted to the credit bureaus for an immediate update

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