What is rapid rescoring?

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.   

Kim McGrigg is the former Manager of Community and Media Relations for MMI.