Update Credit Report Fast Rapid Rescore To Increase Credit Scores
This BLOG On Update Credit Report Fast Rapid Rescore To Increase Credit Scores Was UPDATED On January 19th, 2019
Mortgage Borrowers who have a derogatory and/or negative credit item on their credit report, a mortgage lender can do update credit report fast rapid rescore, also called rapid rescoring.
- Rapid Rescoring is an accelerated fast track process of updating a consumer’s up to date information on their credit report
- Instead of waiting 45 days or more for the three credit bureaus to update borrower’s credit information, rapid rescoring can have borrower’s credit information updated in a matter of 3 to 5 business days
- There is a cost involved with rapid rescoring
- Normally it costs $30 plus per credit tradeline per credit bureau
- So if a borrower needs to do a rapid rescore on one credit tradeline, it will cost close to $100 to get it updated on all three credit reporting agencies
- If borrowers need to rapid rescore ten credit tradelines, it can cost $1,000
- Rapid Rescoring can be expensive and is normally done in cases of urgency such as if a borrower needs to get a mortgage approval sooner than later
Cases To Update Credit Report Fast Rapid Rescore To Qualify For Mortgage
All mortgage programs have minimum credit score requirements.
Here are the minimum credit score and other mortgage requirements for loan programs in general:
- FHA Loans require a 580 credit score for 3.5% down payment home purchase FHA Home Loans
- VA Loans do not have a credit score requirement
- In order to get an approve/eligible per Automated Underwriting System Borrowers should have at least a 580 credit score
- Fannie Mae and Freddie Mac require a 620 credit score for conventional loans
Increasing And Updating Credit Scores With Rapid Rescore
Borrowers may not meet the above credit score requirements to be eligible for a particular loan programs.
- However, there is a mortgage credit scoring analyzer called the FICO Simulator or FICO Analyzer that will do a credit analysis on a borrower’s credit score
- Borrowers with high balances on their revolving accounts and/or credit cards have a chance of greatly boosting their credit scores by paying down their credit card balances
- They can pay down the credit card balances, give the proof of payment to their loan officer, and the loan officer can do a rapid rescore
- By rapid rescoring, the credit bureaus will update the paid down credit card balances
- After the credit reporting agencies update the borrower’s information on all three credit bureaus, the loan officer will re-run a tri-merger credit report
- The new credit report with the updated new credit card balances will yield a much higher credit score where the borrower will not qualify for a mortgage
Reasons For Rapid Rescoring
Rapid Rescoring is done for borrowers who want to maximize their credit scores so they can get a lower rate. Higher credit scores means lower mortgage interest rates on home loans as well as any types of loans. Higher credit scores means lower insurance premiums as well.