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.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.