Rescore Your Credit Profile in 1 Week!

Many borrowers are aware of what their credit scores are but not many are aware that they can change their score in as little as 1 week. Until recently it took 30 - 60 days to make changes to a credit profile that affects the score. However, with the growth in technology the 3 major credit bureaus (TransUnion, Equifax, Experian) have streamlined the time frame through a process known as “Rapid Rescore”. This service is provided by select mortgage professionals as a means of improving your credit score for mortgage qualification purposes but it has an impact on all areas of your credit profile as well.

The most common candidate for this service are borrowers that have high credit card balances. Many are not aware that a credit score is directly related to the risk lenders / creditors see IN THE NEAR FUTURE…as well as past performance. With that said, a credit profile that has 90% of it’s credit limits used is considered a higher risk than a profile with less than 50% balance - credit line ratio. As a result, the lower your consumer debt balances….the higher the score.

This can make a huge difference when qualifying for financing (car, home, etc). In many cases a profile can be improved by as much as 50 points simply by making the right payment on the right account. Lenders have access to these “Rapid Rescore” tools which enable them to adjust balances and see what results?a payment?will make to the scores. Borrower is then told how much to pay to?which account(s), obtains proof of payment from the creditor (on their letterhead and with the account number in the letter) and submits this to the lender. Once received, the lender submits this to the agency that pulled the report and it is forwarded electronically to each bureau the rescore is requested of. The whole process takes about 1 week from the time you submit proof of payment afterwhich the lender runs a new report with the adjusted scores.

Unfortunately, this service is not provided by many lenders simply because it takes time, and has a significant upfront cost for the lender. Rescore costs vary from agency to agency but this is an average:

Research?costs are?$6 per bureau to use the Rapid Rescore tools. This is paid by the lender just to research the possibility of score improvements. If he looks at improving scores on all 3 bureaus that is an $18 cost…just to do the research.

Actual rescoring is $15 per item to rescore, per bureau it is submitted to (IE: 3 accounts rescored on all 3 bureaus = 3 X $15 X 3 = $135).

So as we can see, it is common for a Rapid Rescore to cost the lender $150. This is why many will not offer the service. They are not setup for the upfront costs and usually don’t like to chance getting paid on the back end.

In closing it is obvious what the benefits of the Rapid Rescore are. In almost all cases it improves the rate the borrower will get and, depending on the type of financing, could be crucial to enable a borrower to qualify.

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