How To Raise Credit Scores Using Rapid Rescore

By: Kate Rieger

Raise credit scores 50 points in 5 days! Sounds great right? Maybe...

A mortgage company or bank can offer a service called 'rapid rescore' to get something corrected off your credit report. Here is a brief walk through of this method to raise credit scores. The rapid rescore strategy requires proper paperwork. The proof must come from the creditor directly.

Some examples of corrections are:

a letter stating the account is not your account
a letter stating the account was paid satisfactorily
a release of lien
a satisfaction of judgment
a bankruptcy discharge
a letter for deletion of collection account or any relevant evidence
a letter correcting (and raising) available credit balance
a letter changing the status of an account from 'delinquent' to 'current'
a letter to update high credit limit

Checklist

1. The creditor's letter must be signed and on their stationary.
2. It must include the creditor's contact name, phone number, your name and address, and a full or partial account number that matches the credit bureau entry number.
3. The letter must state what action the lender is doing to correct in the credit file -- like change the status of an account from 'delinquent' to 'current.'
4. Next the lender forwards the letter to the credit bureau, does a telephone verification and a new credit report is issued with an updated credit score.

The rapid rescore system works best if you are trying to raise credit scores fast to move up from one credit rating to another. Some mortgage companies offer a 'what if' scenario for rapid rescoring. Simply put, the account that is to be updated is entered into the 'what if' scenario and the program calculates a new credit score.

For example, your mortgage lender runs your credit report and your scores are 660, 680, and 710. Using a rapid rescore program, the results tell you what you can you do to increase your score 10 to 50 points. The system may recommend that you pay off some credit cards, pay off a collection, or other options. The main idea is to get you to the next level so the bank can offer better rates and options for your loan. This tool provides an educated guess on how to raise credit scores so it is not a guarantee of how the rescore will ultimately impact the credit score.

Your lender may simply evaluate how the proposed correction would impact the major score factors that are listed on your credit report. If that correction affects a major score factor, then its likely it would increase your credit score and worth pursuing.

Rapid rescore is not cheap. Typically it costs a lender $30 to $50 to run it against each credit bureau. The lender may choose to eat the cost or they may charge it back to the borrower. It is expensive but in most cases it works well for people looking to raise credit scores fast so they can pay 5% down payment instead of 10%, or avoid a high interest rate, or eliminate PMI or other costs related to mortgages.

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