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Blogging for Change Blogging For Change
by sitecore\kmcgrigg on August 30, 2011

Sometimes, credit reports contain errors serious enough to cause consumers to be denied credit, a loan, an apartment or home loan or even a job.  Fortunately, the Fair Credit Reporting Act (FCRA) gives consumers the right to request that legitimate credit reporting errors are corrected.  Unfortunately, many consumers, particularly those trying to close on a mortgage loan, may not have the time it takes to make the change. 

If you find yourself in this predicament, a relatively unknown service, called rapid rescoring, can significantly speed up the dispute process — legitimately.  With the help of a mortgage lender or broker, consumers can get their reports corrected and rescored in a matter of days, rather than the typical one to three months. 

Rapid rescoring is somewhat costly — averaging $50 for every account that needs to be addressed.  However, improving your credit standing through rapid rescoring can make the difference between qualifying for a home or not.  It can also help consumers to obtain better loan terms, possibly saving thousands of dollars over the life of a mortgage loan.  If you’re interested in rapid rescoring, here’s what you need to know: 

  • You must work with a mortgage broker or lender.  Rapid rescoring is not available to consumers. 
  • In addition to reviewing your report for inaccurate negative information, also look for omissions. A study by the Consumer Federation of America and NCRA found that 78 percent of all files were missing at least one revolving credit account in good standing.
  • Do not waste your money trying to remove accurate negative entries from your report.  No one can legally remove accurate information from your credit file.
  • Locate proof that the item is an error.  If you are not able to provide documentation that the item is incorrect, rapid rescoring may not be helpful.
  • Realize that this is not a sure thing.  Your credit score is determined by a complex formula.  One change may or may not make a significant difference to lenders.

Finally, to avoid a time-crunch, vow to check your credit reports at least once each year and before making any major purchase.  To obtain your credit reports, visit www.AnnualCreditReport.com.   

Posted in:  Mortgages, Homeownership
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