Creditors update consumer’s credit updates once a month. For example, say you need to pay down your credit card balance in order for your credit scores to go up or due to having higher debt to income ratios and you pay it on February 7th. Your credit card company will report your new balance after you paid your credit card down by the end of February and your credit report will not reflect it until the first week of March. Updating your credit report takes normally one month or more. Now you can get an updated credit report in a matter of days through credit rapid rescore.
Who Orders Rapid Rescore
Credit rapid rescore is used by most mortgage brokers to update or raise a lower credit score in a matter of day. A credit rescore client’s updated information is provided to a third party credit agency with proof of payment, proof of erroneous information data and the credit agency then in turn reviews the information with the proof provided and makes the correction to the three credit reporting agencies: Transunion, Experian, and Equifax.
Reason For Rapid Rescore: Case Scenarios
If you are in the process of applying for a mortgage but you have inaccuracies on your credit report, you may not have one to three months to wait for you to dispute your inaccuracies with the three credit reporting agencies. For example, if you filed bankruptcy three years ago but the credit reporting agencies have posted you filed bankruptcy only a year ago, you will not qualify for a residential mortgage loan due the inaccurate information listed on your credit report. On a case like this, your credit report needs to reflect the three year seasoning of your bankruptcy even before you are able to apply for a mortgage. You need to get your bankruptcy discharge paperwork to your mortgage broker and your mortgage broker will request a rapid rescore from a third party credit company. The third party credit company will in turn notify the three credit reporting agencies and provide them with the bankruptcy discharge paperwork and update the correct date of your bankruptcy which is three years old instead of the inaccurate one year ago reporting date. All this is done in a matter of 3 to 5 business days instead of months. Once your mortgage broker gets the correct information updated on your credit report, he or she can then proceed with processing your mortgage application.
Balance On Credit Cards
Another case scenario. Say you have 3 one thousand credit limit credit cards and your balance on all of those credit cards are $900. High balances on your credit cards will lower your scores substantially. Say you need to pay off your credit cards in order to get a higher credit score in order to qualify for a residential mortgage loan. What you need to do in order for a quick fix is for your loan officer to do a rapid rescore. Pay off all three credit cards and provide your loan officer with proof of payment. Your loan officer will provide the proof of payment and zero balance statement to the third party credit company. The third party credit company will contact all three credit reporting agencies and the credit bureaus will reflect your updated zero balance on your credit report in a matter of 3 to 5 days. By doing a credit rescore, you do not have to wait over a month to get an updated credit report to reflect your zero balance. It is done in a matter of day.