Your credit score is used to determine whether or not you are able to receive new credit, and if you are what the interest rate on that credit will be. Just a few points on your credit report can dramatically affect your ability to receive new credit and can cost you hundreds if not thousands in additional interest rates when making larger purchases. If you are making a large purchase, such as a new home and want to quickly improve your credit score you now have a new option: Rapid Rescore.
What is rapid rescore?
Rapid rescore is a way of improving your credit score quickly, by correcting items and then having your credit score “rapidly” corrected. With rapid rescore, things such as charge offs and collections can be corrected. If you pay off a balance on a credit card that can also be taken into account, and can improve your score. Unlike with your typical credit report where changes in your score can take months or even years, rapid rescore makes those changes to your score in days.
Where do I go to get a rapid rescore done?
Since rapid rescore is often expensive, it is usually only done by people who are looking to make a high dollar purchase such as a home or business. In the case of these individuals they would setup a rapid rescore through their mortgage broker. The mortgage broker would discuss the potential benefits of rapid rescore with you, and determine whether or not it is right for you in your situation. The broker would then handle all of the necessary paperwork. You would be responsible for providing them with documentation that you have paid certain creditors or the court.
How long does rapid rescore usually take?
From start to finis the rapid rescore process will take about a week. Usually you would talk to your mortgage broker about rapid rescore and they would set it up with credit reporting agencies. Depending on the particular companies you are dealing with the whole process can take anywhere from three to five business days. After the rapid rescore is done however, your credit rating will be permanently changed to its new rate.
How much will my credit rating be increased?
The amount of improvement to your credit score is for the most part determined by the types of things you are having corrected on your credit report and the overall state of your credit before the report was done. The difference can be a few points or hundreds if you have something major removed. Just one negative item on your credit report can make your credit rate drop quite a few points. Correcting that problem could potentially save you thousands.
How much does it cost?
The cost of rapid rescore has a lot to do with where you are going to have it done. In some cases mortgage brokers will eat the cost of the rescore in order to keep your business. The cost however is usually a couple of hundred dollars.