How Can Rapid Rescoring Help You Right Now?
Most lenders require you to have a certain credit score if you want to obtain their product. Mortgage lenders are the most specific of all lenders. For example, you cannot obtain an FHA loan if your credit score is below 580.
In some cases, lenders can help you boost your credit score to meet their criteria. Furthermore, the boosted credit score can allow you to access more reasonable interest rates. Rapid rescoring can help you if you're in this situation. The following is some information on the process and how it can help you.
What Is Rapid Rescoring?
Rapid rescoring is a process that aims to get you a better credit score rating. Your prospective mortgage lender may require you to pay down or pay off the debts that are on your credit report before they agree to approve you for a mortgage on a new home. You might do that right away, but the lenders you pay might not report your payments until 30 days from the day you make your payments.
In some cases, it could take two or three months before the credit report reflects that you have made these payments to make your credit score change for the better. Rapid rescoring is something that the mortgage company can initiate for you if you want them to. It's not a process you can do by yourself, but the mortgage company can do it if they desire to.
The process involves the mortgage lender contacting the lenders you've paid and requesting that they immediately report your payments to the credit bureaus. Once they report the payments, your balances will decrease, and in some cases, your old delinquent accounts will close. At the very least, your utilization number will go down. That will raise your score and put you in a better position to get mortgage approvals, lower interest rates, and a stronger overall reputation.
Why Might Rapid Rescoring Be Necessary?
Your mortgage lender might deem it necessary for you to agree to rapid rescoring before they continue to process your application for a mortgage loan. At that point, it will be in your best interest to allow them to see if they can work their magic on your existing loans. Rapid rescoring might give you the highest credit score you've ever had in your life. That high credit score can make you eligible for many things. Consider doing it if you're deadlocked like this.
Who Qualifies for Rapid Rescoring?
Anyone who is having a tough time getting approved for a loan can get rapid rescoring. It's up to the lender to decide if they are willing to invest their time and resources into getting you where you need to be.
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Mortgage companies want to help in most cases. They want to be able to close their deal with you and get you into a house you love. You shouldn't be closed-minded to rapid rescoring because it can truly help you obtain the products you desire. Boosting your score is always a positive event.
How Can Rapid Rescoring Help You?
As we mentioned, the rapid rescoring can help you boost your score enough to get you the loan approval you desire. It can also help you to obtain other financial products and services you might desire:
You may suddenly receive invites to apply for credit cards after you do your rapid rescoring procedure.
Your current lenders may offer credit line increases to you.
You might find that you gain approval for many of the things that you could not obtain previously. You can take advantage of a wealth of opportunities just by allowing the lender to assist you.
How Much Will Rapid Rescoring Boost a Credit Score?
It's difficult to tell just how much your score will rise when you do rapid rescoring. That's why the best candidates are consumers who are only a few points away from getting the approval and the interest rates they love.
The credit score boost depends on what you're paying and what happens to your account after making those payments. You can gain 30 points if you pay off an entire account, and that account disappears or reflects your payment history positively. Paying down a debt can give you an average of 10 points. Again, it depends on how much debt you choose to pay down.
It would be wise to make a large lump sum payment if you have the funds to do so. You'll want to make your credit score rise so that you're in an entirely new credit score class. The more you boost your credit score, the lower your interest rates will be.
A reputable mortgage lender can give you an idea of how much you will have to pay and what will happen once the bureaus receive the information. You will see the fruits of your actions.
How Do You Get Rapid Rescoring?
You won't have to do much to get rapid rescoring. Your prospective lender will tell you what you need to do to increase your score.
- At that time, you can request that the prospective lender ask for rapid rescoring for you. You should have no problem receiving it.
- The lender will want you to make your payments and then provide them with proof of the payments.
- They will then contact the relevant lenders and make a formal request for them to update your credit score and account information.
- Once that's done, you'll be able to proceed as usual.
Can You Do Rapid Rescoring Yourself?
What You CAN do
The only thing you can do is dispute information on your credit report and let the bureaus know if any of your information is inaccurate. A regular investigation takes up to 30 days to resolve. Sometimes, investigations don't take a full 30 days to complete, but you'd still have to wait until the lenders decide to post the updated information to your credit report. Without rapid rescoring, you could be waiting for updates for a long time.
Can a Credit Repair Company Do Rapid Rescoring?
While credit repair companies can do a lot to help you, they cannot request a rapid rescoring procedure. It has to be a lender who wants to approve you for a product they offer. They have to send information to the bureaus so that they know you're in the process of obtaining approval and you've made the payments to resolve your credit score issues.
Credit repair companies can send letters to challenge your creditors. They can also initiate disputes for you if you want them to. The rapid rescoring is something exclusive to the lenders who want to help you, however.
Does Rapid Rescoring Cost Anything?
Rapid rescoring itself should not cost you anything. The lender will have to put forth the funding to request that your information be updated as quickly as possible. That being said, not all lenders will be willing to do this. Some may not offer the program at all because of the cost of the process.
The request for rapid rescoring has to go through to all three credit bureaus. That cost could run as much as $50 per bureau. The lenders are not allowed to charge the borrowers or prospective borrowers any fees associated with the process. Therefore, it's understandable that a lender might not want to put forth the expenses.
Who Pays for Rapid Rescoring?
Only the lender can initiate the process and pay for the process. As a debtor, you are not allowed to pay for the process of rapid rescoring. You can request that the lender do it for you, but they are not obligated to participate. You also cannot be charged for disputing negative items on your credit report. You should keep those two facts in mind as you evaluate the best way to handle your situation.
How Soon Will Rapid Rescoring Work?
The term "rapid" usually means faster as compared to another process. It doesn't necessarily mean that the process will be complete in 24 hours.
Your prospective lender will be able to pull a new credit score for you at that time with the updated information. You might be able to get the results even faster. Some lenders promise results in as few as one to five days. Don't start the process with the expectation that it will be done in one day, however. It's more beneficial to keep your expectations around one week. Still, one week is much better than 30 to 60 days.
Contact Us for Additional Information
You should now have a firm grasp on the process of rapid rescoring. However, you can contact us if you need any additional information about the process. We are a consumer advocate who primarily works in the area of personal finances. Our expertise crosses many areas, and you can find information in our database of articles, blogs, and personal finance news.
You can also feel comfortable contacting us if you need us to connect you with someone from our network of lenders. We have connections with many professional lenders in the field, and we can help you if you need mortgage financing. We are not a lender ourselves, but someone in our network can see to it that you get the most amazing deal possible on your mortgage.
We can also provide you with connections to auto lenders, personal loan companies, business financing, and the like. Don't forget to contact us if you also need some type of counseling or guidance for taxes, debt management, or credit problems. Our huge network covers all these areas. We're in business to ensure that you have access to all of the financial resources you need and desire. We are in business to ensure that you flourish as a debtor and can raise your credit score as much as possible.
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