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What is Rapid Re-Scoring?

Copyright 2006 Debt Management Credit Counseling Corp.

By Pete Glocker Category: Finance---Investment

Submit your Articles Here!

Copyright 2006 Debt Management Credit Counseling Corp.

Boca Raton, Fl --We all have heard of Bill Fair and Earl Isaac that began in the 1950s, but only in the last ten to fifteen years, mortgage industries have been relying on the individual person?s credit or ?FICO? score to validate a borrower?s creditworthiness.

Years ago, prior to the widespread use of FICO scores, it was easier to respond to questionable entries on one?s credit history and to clear up misinformation. A loan officer could plead one?s case immediately with an individual who actually reviews the application. By doing this, the loan officer was often able to save the loan from denial or a less-than-attractive loan package. Today however when going through the mortgage loan process and one discovers outrageous information on their credit report, it has become very difficult or almost impossible to clear up misinformation on one?s credit report in time to increase their credit score and secure a impressive loan.

A consumer and mortgage lender can clear up misinformation on their credit report by working with all of the three main credit bureaus. This process can take anywhere from thirty to sixty days to clear up bad information, which maybe too long to save a loan or impressive interest rate.

Now lenders have a new option to offer to their consumers when wait time is not a factor in securing an impressive loan. It?s called rapid re-scoring service. Rapid re-scoring is NOT credit repair. Rapid re-scoring service offers resolution to damaging credit information (as long as it is correct) within forty eight to seventy two hours.

What Rapid re-scoring services can do is contact the creditor who has reported data that you can prove is incorrect, point out the mistakes and gets a ?universal data correction form? completed by the creditor, and submits the form directly to the three main credit bureaus for immediate correction of your file. Your credit score is then recalculated. A substantial increase in your credit score can end up saving you thousands of dollars in interest over the life of your mortgage.

Rapid rescoring simply gives you a better chance than going though the ?big three? yourself and waiting up to two months for an answer. This service is not free and can cost a couple of hundred dollars, but maybe money well spent.

This service at this time can only be arranged through your mortgage lender and is not guaranteed. Depending on your credit report something else could outweigh the error that was removed. So as always it is better to check your own credit report (twice a year) and not wait until the last minute to find out errors.

------------------------------

This topic was researched and compiled by Barbara Lafferty, a certified financial counselor at Debt Management Credit Counseling Corp (DMCC) in Boca Raton, FL. The article was edited by Pete Glocker of DMCC. Pete Glocker is employed in the Education and Charitable Services Department at Debt Management Credit Counseling Corp. (?DMCC?), a 501c(3) non-profit charitable organization located in Boca Raton, Florida. Pete graduated from Florida Atlantic University with a BA in Multimedia Journalism and is an experienced web producer for Tribune Interactive products Sun-Sentinel.com and SouthFlorida.com. DMCC provides free financial education, personal budget counseling, and debt management plans to consumers across the United States. Debt management plans offered by DMCC help consumers relieve the stress of excessive debt by reducing credit card interest rates, consolidating and lowering monthly payments, and stopping collection calls and late fees. DMCC financial counselors can be reached for free education materials, budget counseling and debt management plan quotes by calling 800-863-9011 or by visiting http://www.dmcccorp.org . Pete Glocker can be reached by email at pete@dmcccorp.org

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