What Is A Rapid Rescore?
When applying for a mortgage, it is very important for you to have your credit file up-to-date. That’s why most mortgage brokers and lenders offer a service called a rapid rescore. For example, if you’ve had high balances on your credit cards and already paid them up, but the bank did not update it yet to the credit bureaus, with a rapid rescore you can have it updated right away.
How Does A Rapid Rescore Work?
A rapid rescore works as follows. You will need a letter from your bank confirming the correction that needs to be updated on your file. For example, if you paid up a balance, ask the bank for a zero balance letter. If the bank made a mistake and reported a late payment, ask the bank for a letter confirming the mistake. You can receive the letter by calling the number on the back of your card and ask them to fax it to you. Once you receive the letter give it to your mortgage broker and ask him to send it to the credit bureau (using the same company he uses to pull your credit.)
How Long Does it Take For My Credit File to Update?
Once you sent in the letters, your credit file should update within 48-72 hours.
How Much Does a Rapid Rescore Cost?
The FCRA (15 U.S.C. § 1681) forbids the credit bureaus from charging a consumer to update their credit file. The mortgage broker or lender, though, will need to pay about $100 to have all 3 bureaus updated. (Unfortunately, for this reason, there are many lenders and mortgage brokers that don’t offer this program.)
Some mortgage brokers will forward this charge to their clients. It is highly questionable if this is legally allowed, plus this is a violation of their contract with the credit vendor he/she is affiliated with. These violations can result in termination of access to credit reports and can be held liable for any actual or punitive damages.
Is A Rapid Rescore Credit Repair?
No! Credit repair is removing files through a dispute process. A rapid rescore is just updating the credit bureau with the information they are missing.
Can I Do A Rapid Rescore Without Applying For A Loan?
No. The express option of a rapid rescore is reserved only for people who are applying for a loan now and need everything updated express. If you’re not applying for a loan now, you’re not eligible for a rapid rescore.
Can I Do Rapid Rescore Myself?
Rapid rescore is a program offered only through lenders and mortgage brokers. So ask your lender or mortgage broker if they offer the program. If not, you may want to find a new one.
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