Update Credit Report Fast Rapid Rescore To Increase Credit Scores

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 December 20th, 2017

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 but in order to get an approve/eligible per Automated Underwriting System Veteran Borrowers should have at least a 580 credit score
  • Fannie Mae and Freddie Mac require a 620 credit score for conventional loans

Mortgage 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.

Mortgage Borrowers who do not qualify for a mortgage loan because credit scores are too low due to maxed out credit cards or the credit reporting agencies are reporting errors can Update Credit Report Fast Rapid Rescore
  • Loan Officers can help borrowers Update Credit Report Fast Rapid Rescore to correct errors and/or boost credit scores
  • There is a way of improving credit scores by paying down balances and Update Credit Report Fast Rapid Rescore
  • The credit reporting errors by the use of Rapid Rescore which mortgage lender can do for borrowers who already have purchase contracts and are in a rush to qualify and close

How To Update Credit Report Fast Rapid Rescore And How Does It Work

Under normal circumstances, updating credit report takes at least 30 to 60 days if it is done the traditional way:
  • However, with Rapid Rescore, all the mortgage lender needs is proof that borrower have paid down credit cards or proof that the credit reporting agency is reporting erroneous information
  • They will have a third party credit vendor contact the three credit reporting agencies and provide proof to them and in return, it will be updated in 3 to 5 business days
  • By getting borrower’s credit report updated, it will also instantly update credit scores

Victim Of Identity Theft

Mortgage Borrowers who have been a victim of identity theft and want to apply for a mortgage,  the chances are they need to wait several months to get the fraudulent items corrected on credit report.

  • However, victims who are armed with a police report and letters from the creditors that there were unauthorized charges on credit account, a Rapid Rescore can delete the false information from credit report in a matter of a few days
  • There is normally a cost involved with rapid rescoring
  • Depending how much of a hurry borrowers are in, it might be worth the investment in getting the bad credit items deleted from credit report in a matter of a few days instead of several months

Benefits Of Rapid Rescore

The benefits of rapid rescore is tremendous and mortgage lenders rely on rapid rescore to make sure a mortgage loan closes on time.

  • For example, if a mortgage loan borrower does not qualify for a mortgage loan because their debt to income ratio is too high during the mortgage approval process, the mortgage loan officer can have the borrower pay off certain credit card debts or other liability
  • After paying down and/or off the debts, the loan officer can request a rapid rescore and update the credit report
  • This speed will enable a mortgage loan to close on time rather than wait 30 or more days until the credit reporting agencies update the borrower’s updated credit information
  • By paying down the  balance of a revolving credit account will also boost credit scores so it will be a win win situation
  • Rapid rescores is a powerful tool for both the mortgage companies as well as the mortgage loan borrowers
  • Errors such as erroneous bankruptcy and/or foreclosure dates can be corrected as soon as 3 to 5 business days instead of months

Mortgage Borrowers with errors on their credit reports and with purchase contracts needing a direct mortgage lender with no overlays, can contact The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays.

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