Rapid Re-Scoring – Methods That Do Not Cost Money

Rapid Re-Scoring without spending extra money to update credit report

As already mentioned, there is really scoring fee involved in this process which is approximately about $30 per item and a credit report. However, these are some ways in which you can avoid spending any further money specially in gathering the required evidence to send to the credit reporting agency for re-scoring. You should always bear in mind that these methods are a wide selection of the things that you can do, they are not necessarily applicable or targeted to your need or circumstance. You should consider each method carefully and often do take the advice of the mortgage loan officer himself as well as a certified accountant if you happen to have one.

Options for raising your credit score without spending money.

Removing Excessive inquiries

Not many people worry about the section on the credit report that lists an inquiry. An inquiry results anytime you credit report is accessed by a creditor when you allegedly applied for credit. The impact of an inquiry can be as much as 5% on your credit score. However, the impact of inquiries is not very clear on the credit report. Unless excessive and a lot of inquiries have been made in a short amount of time representing the fact that you are trying to take on a lot of credit, the impact on your credit report can be minimal.

However, if you see any inquiry that was not authorized by you, you can write to the creditor who pulled your credit report and ask the reason for doing so. In order to raise your credit score you will need a letter from someone within that company attesting to the fact that the inquiry was made in error and needs to be removed. Under certain circumstances you may even be able to convince a creditor who made an inquiry on a legitimate basis. Remember, this may be the easiest section to deal with and raising your credit score every single point is going to help in the long run.

Credit card balances

Your revolving accounts which are typically your credit card accounts have the maximum impact on your credit rating. Any negative information on your credit card account such as a late payment which was 30, 60 or even 90 days late can severely affect your credit score. Not just negative information but simply a balance being reported on a credit card can affect your credit worthiness. The first thing to consider is that the balance being reported on the credit file may be different than the actual balance on your credit card as of that day. You can fax the credit card company and get a letter faxed you stating what your balance for that day is. Just by sending this letter could make a huge difference to the credit score.

Late payments

When you have a late payment being reported on your credit report, there are two possible reasons. First, it is being reported in error and you have never late on the mentioned account, secondly, you were actually rate on that account and the information is being recorded accurately.

In most circumstances it is going to be the latter reason. The fact is that a late payment on a credit card or a debt accounts such as your automobile loan or personal loan can really damage your credit score. The more recent this entry is, the more impact it will have on your credit score. Just as a reminder, the negative information on your credit report that is more recent in time impacts your credit score more than information that is old.

What you can do about the late payment being reported on your credit report is that you can write a letter to the creditor and send it by fax admitting a mistake. You should be honest direct and professional when writing the letter and try to print it on a letterhead with a professional title and designation under your name. What this letter needs to do is call on the continued customer loyalty factor in exchange for the company’s assistance. It should be noted that this method is more likely to work with a creditor with whom you have a long-term relationship. For example a bank with whom you have help banking accounts for the past several years. This method is not guaranteed to work but can in several situations. It all depends on the rest of your history with the financial institution as well as a personal relationship with any key officers.

What the letter should say just is that the you are admitting to having made a mistake with the late payment and that it was a spontaneous error and had nothing to do with your inability or unwillingness to pay the creditor. Mention how much you value your good relationship with the creditor and how you look forward to continuing association with the Bank of the financial company. Request them to kindly remove the negative payment from being reported as to the credit report as a goodwill gesture towards your continued patronage.

Collection accounts

The only way to remove a collection account without paying them off first is to have evidence to present to the collection’s agency that the original creditor was paid. A good example is medical collection accounts that have been paid by the insurance claim. Be sure to take a firm but friendly approach when dealing with a collection agency. You need them to to get fax your letter as quickly as possible and not take their normal time to update your credit report which could take 30 to 60 days.

Rapid Re-Scoring – Methods That Cost Money


Options for raising your credit score by spending money

These expenses are in addition to the fee that the credit reporting agencies charge to re-evaluate and update your credit report, which is about $30 per account.

It is a fact that if you’re willing to spend some money to quickly fix the various issues affecting your credit score, you are likely to faster and more effective results. It is obvious what you can do when you have a little money. These are the following methods that can get you a quick result with the re-scoring process.

Methods that require spending money

Pay Off Credit card balances

As already mentioned, excessive credit card balance or even an unused credit card that still has a small balance on it affects your credit score. Having a zero balance on a credit card is much more positive information that can raise your credit score quickly. Try to have a zero balance on your credit cards as much as possible. This is especially true for the credit cards that you are not using. You can pay them off, have a zero balance and continue to maintain a zero balance on those cards by not using them. It will be a good idea to tackle the smaller card balances first because it will be easier to deal with. Do try to make the payment on your card using a quick method such as doing a direct bank transfer or visiting the branch itself and making the payment. Sending a payment by check will only delay matters. You can visit your bank branch and ask for an updated statement as soon as the payment is made or ask for letter from one of the assistant managers stating that the account now has a zero balance.

This is situation where you might need to be a little insistent because the credit card company might insist that it cannot issue a letter about the updated status before the next billing cycle.

You may once again have to make a call to the customer loyalty factor and explained to them that you need to the letter for the purpose of securing a mortgage loan for yourself and your family.

Pay Off Collection accounts

It is fairly simple to understand that if you have the money, you can pay off the debt that you owe on a collection account. However, it is not as simple as that. Having a zero balance on a collection account is still not good as not having a collection account reported to the credit agency at all.

You need to make an agreement with the collection agency that you will make the payment on your collection account in exchange for removal of all information from your credit report regarding the account. This means that they will cease reporting the account and the account will be dropped from a credit report as if it never existed. Paying off a collection account is a good step in the right direction but being able to negotiate the account being removed from a credit report is more advantageous when it comes to raising your credit score. No collection agency will discuss or confirm such a request over the phone so you should usually send the letter on a fax number and a signed copy of an agreement in return.

Remove Late Payment From Credit File

Late payments cannot be removed from your credit report even if you become current on the account. However you can contact the creditor to ask if it would agree to remove the most recent late payments and re-age your account in exchange for the outstanding balance.

However, this is mostly true for late payments that have occurred by accident. If you’re currently late and have been late on a particular creditor’s account, the reason probably was that you could not afford to pay the credit in the first place. If you could you would not be late. Therefore, this tactic will only work if you can afford to come up with the money to pay off the creditor.

As already mentioned, public records are more tedious and more time-consuming to deal with. While they may not fit the purpose for the rapid re-scoring, you can make an effort to have them updated on your credit report over a long-term. It is equally important to have the correct status of a bankruptcy or a judgment reflected on your credit report.

For the purpose of a rapidly re-score, keep your focus on creditors and collection accounts. It will usually take a couple of days to get a response and to receive everything you need, such as certified letters, from the creditors. You will need to submit these letters and evidence to the loan officer who would further forward these documents for re-score to the credit reporting agencies. It will usually take 3 to 5 days for the credit reporting agencies to respond.

Remember, rapid re-scoring service is usually only offered in connection with applying for a mortgage. However, each of these tactics can also be used to raise your credit score over a longer take the time. You’ll just have to wait 60 to 90 days for the update to show on your credit report and your credit score.

Rapid Re-Scoring – What Is Affecting Your Credit Score The Most

Figuring out which information is affecting your credit score

As long as you are willing to pay the fee for re-scoring various accounts and items on your credit report, loan officers should be willing to help you. In certain cases, the mortgage company may be willing to bear the cost of re-scoring just a few accounts. This is because helping you qualify for the mortgage loan is in their benefit as well. Therefore a good mortgage loan officer should be willing to help you with this.

A mortgage company usually has a look at your middle credit score.

The middle credit score is the median between all three credit reports. A mortgage lender usually uses a tri-merge credit report provided to it by its own department or one of the third-party credit report service. The idea of rapid re-scoring is to raise your middle credit score.

Before you can do this, you have to figure out which are the factors that are making your credit score low. The law requires the score factors, the elements that make up your credit score, to be disclosed to you when you’re applying for mortgage. The most common type of factors that can affect your credit score have already been discussed and are as follows:

The most common factors that affect a credit score

  • Excessive inquiries
  • credit card balances
  • late payments
  • collection accounts.
  • Public records such as bankruptcy, civil judgment or tax liens.

However, public records are usually not a part of the rapid restore process because records such as bankruptcies vacancies cannot be addressed in a timely manner and are nearly impossible to do anything about before they are scheduled to fall off your credit report.

Assembling The Information for CRAs to Update

The only way that you can convince a credit reporting agency to update the information on your credit file in a quick manner and request re-score of your credit score, is to get direct evidence from the creditor that the information on the credit report should be updated.

Once again, it should be mentioned that this evidence and proof of updated information has to be sent by the mortgage company to the CRAs. You cannot send it on your own.

In order to make a letter acceptable to a credit reporting agency and to convince them to rapidly update or correct information on your credit report, the letter from the creditor should contain the following information.

  • It should be dated within the last 30 days.
  • It should be written on the letterhead of the creditor with contact information.
  • It should have account holders name and address.
  • It should have your account number.
  • It should have a specific and clearly stated reference to what information is to be updated on the credit report e.g. balance amount is zero.
  • Signature from the creditor’s representative.

What’s the credit reporting agency will not accept is:

  • Copies of canceled checks or money order receipts.
  • Handwritten letters.
  • Letter without contact information or a date.
  • Divorce decree.
  • Paid receipts.
  • Third-party documentation.

It is also a good idea to ask the creditor to fax all the necessary documents to you since you want to save time. Try to get in contact with the person in charge of your account who can send you the letter with his own authority.

Rapid Re-Scoring For a Home Loan Application

The rapid re-scoring process applies only to a situation when you are applying for a mortgage. The tactics and methods used to increase your credit score rapidly and usually within the 5 to 10 days are all legal maneuvers. But they are often unused by inexperienced or unmotivated loan officers.

These are the same methods that can be used in any other circumstances to increase your credit score but in case of a mortgage application, they can be used to bring about a positive change in your credit score within a week to 10 days.

It is not impossible to increase your credit score by as much as hundred points using these methods.

Usually it is very well advised that before you apply for a mortgage loan you take the first few months to sort out the information on your credit report, clean out all the mistakes and errors, change your credit habits, pay off outstanding bills and debts and improve your credit score. We have dealt extensively with how you can raise your credit score in other posts in this section. The first step involved is ordering a report of your credit score and having a look at the factors that are negatively affecting it. Also get a copy of a personal credit report and see the accounts and information that is being reported as negative.

However, if you do land yourself in a situation where you quickly needed to fix your credit score before applying for a mortgage, you can use the rapid re-scoring process.

The rapid re-score

The term rapid re-score is widely used in the mortgage industry.

This does not necessarily mean that your loan officer will be using these methods to improve your credit score if you have problems with your mortgage application. Re-scoring is possible when you can prove to the credit reporting agencies that the data on your credit report has changed. Proving this means presenting the credit reporting agencies with evidence and requesting the calculation of your credit score urgently. This evidence is provided directly to the credit reporting agencies by either the mortgage company or its third-party reseller from whom it takes its credit reports which are usually tri merged credit reports.

As mentioned before, the steps followed such as providing proof to the credit reporting agencies about updated information regarding your credit report accounts can be done otherwise also but cannot be done in such a short bit of time. You can provide them with fresh information and ask them to update your accounts which is usually done through a credit report dispute process. This is not the same as a rapidly re-score because it will take much longer to manifest as a result on your credit score.

The fact is that all the mortgage companies, banks, brokers and lenders have the ability to request a re-score. The problem is that they have to pay for it at a cost of about $30 per item, per credit report. If the same account needs to be adjusted and updated on all three credit reports, it means $90 per item to be corrected. However, in most circumstances the consumer does not directly have to pay before requesting such as service but did can have the additional cost passed over to him in the closing cost of the loan itself. As long as you and the lender are willing to pay for the free scoring fee, you have a good chance of raising your credit score.

The difficulty with rapid re-scoring is in coming up with substantial evidence about how the data on your credit report has to be updated. This will take effort on your part and usually some money as well. However, there are a few methods were no money is required to achieve evidence and results. We will talk about those later.

For the purpose of rapid re-scoring, you should consider the most important factors that are affecting your credit score negatively. We will talk about the top 10 factors that affect your credit score and discuss how you can update them to rapidly raise your score in the next post.

Baics Of Credit Reporting – What Is A Credit Score / How Is It Calculated

Understanding Your Credit Score To See How You Can Improve It

A credit score is the result of a highly complex and a proprietary algorithm and mathematical equations which is used to calculate your financial risk level. It typically ranges from 350 to 850 while certain credit scoring models have a range up to 990 as well.

The calculation of the credit score is highly complex. But basically it is used to calculate your credit worthiness in the eyes of a creditor. These calculations rely on large amounts of data that are present in your credit report with the credit bureaus. Usually information as far back as 10 years is considered for your credit score calculation. However, the information which is the most recent has the maximum impact on your credit score.

The most common credit score in use by most of the creditors and sought after by consumers is called the fico credit score. It is named after the company that created it, the Fair Isaac Corporation.

The FICO score was the first credit score to come into practice and its intent was to predict your likely rate of delinquency over the next two years. In other words, what are the chances of you missing a payment or falling behind on your debt?.

This kind of a risk assessment provided by the credit score is the basis for the creditors to approve of your loan application and also for listing you terms such as interest rate and down payment requirement. Needless to say, the more creditworthy you are, the better terms will be extended by the creditor.

These are the five main factors that are used to calculate the credit score. The exact algorithm and calculation is not known outside the company that uses it to calculate it. But the Fair Isaac Corp. released this information about their credit score in order to make the consumer better aware of how he can make a difference in improving his credit score and managing his credit rating the best that he could. Plus, there was mounting pressure from the consumers forums to know what information was being used to calculate credit scores since it affected the people directly.

Payment history [35%]

Your payment history means exactly what it says. It is the history of your payments on all your credit accounts which includes your timely payments as well as delayed payments. It also includes collection accounts. A collection account is an account that is past due and has been assigned or sold off to a collection agency for further recovery attempts. Payment history also includes charged-off accounts which is also past debt account but one that has been written off as lost on the creditor’s tax return on the assumption if that’s the account will remain un-paid. The payments that are the most recent will impact your credit score the most. Which means, late payments or timely payments which have occurred particularly within the most recent 12 months will improve or damage your credit rating the maximum. If you have been on time on a particular credit account during the last 12 months and continue to remain on time, it will help improve your credit score.

Balance [30%]

The outstanding amount or the balance that you own your revolving credit accounts which is typically your credit cards is next biggest factor affecting your credit score. The fico model states the fact that if you do not pay their balances in full every month you have a poor ability to manage money. However, it is not as straightforward as that. You can carry a balance on your credit card as long as the credit utilization ratio, which is the amount of balance as compared to the total limit of the credit card, is less or equal to 30%. Higher balance on the credit card represents a greater risk to the credit card company. If all things are constant on your credit report, and the only information to differ was a single credit card balance that kept increasing, your credit score would decrease in accordance with the increasing balance.

Special tip

If you have balances on select several credit cards, you might want to have a zero balance on as many of them as possible especially if some of the credit cards are not in use. This step suggests that if you have some money left over at the end of the month which you can pay towards your credit card bills, instead of spreading a little over every credit card, put the bulk of your spare funds towards paying off the smallest balance first. This is done with the goal of having a zero balance on as many credit accounts as possible. This has positive impact on your credit score than having even a single dollar remaining on balance on a credit account because it indicates to the credit scoring model that a balance has not been paid in full. Once the smallest balance has been paid you should move on to the next smallest balance until they are all paid off. Common sense might dictate that you pay off the account with the highest interest rate first in order to save money but the method of paying off the smallest balance first not only helps you pay off your outstanding balance and debt faster but is also better for your bottom line credit score. There is also the fact that by completely paying out the balances on your smaller debts, you have larger amount left over to tackle the credit card balances that the higher amount owed on them.

Special note

Revolving credit has a greater impact on your credit score in terms of the proportion of the revolving balance as compared to the balance on installment loans such as automobile loans, personal loans, mortgage loans etc. For example, a credit card with a $5000 limit and a $4000 balance has more of a negative impact than a car loan that was started at $10,000 and has since been reduced to $9000.

Length of credit history [15%]

The longer that you have been a customer with a particular creditor, the better it is for your credit score. This is pretty straight forward because it is given to understand that new accounts have not stood the test of time and so the older the account is with a positive payment history, the less of a risk is perceived by the credit score calculations.

New credit or inquiries [10%]

It is possible for new accounts and new inquiries which result from making credit applications to reduce the credit score. New accounts will have a negative impact on your credit score for about six months and even experience as much as a five point drop for every inquiry that you initiate when you apply for credit. However, the impact of inquiries and new accounts on credit report differs. For the person who has a lot of other positive and strong information being reported on the project file, this impact will be minimal. However for a person who already has a marginal credit rating, this difference could be slightly more and may make the difference between passing the minimum requirements for a creditor or not.

Types of credit [10%]

The different types of credit accounts that you manage also makes a difference to your credit score. For example, many revolving credit accounts such as many credit cards will affect your credit score more than having those many secured loans. The exact calculation for the fico credit score is top-secret but it is believed that what mortgage loan is a given preference over loans from finance companies. Revolving accounts that are seen as more tenacious. The credit scoring system also prefers to see a variety of accounts in the credit history. So a person who uses a credit card along with a personal loan, automobile loan and mortgage loan and have a positive payment history and each will see a greater benefit on is credit score as compared to someone who has only revolving credit accounts even though his payment history might be just as positive and regular.

Improve Credit Scores By Increasing Credit Card Limit

Asking Lenders to Increase Credit Limit to Improve Credit Scores

Once a credit card account is opened for a long time and even if it is carrying a zero balance it is my advice to not to close it. Closing a credit card account makes your credit limit to drop which further increases the balance to limit ratio. Reduction in the available credit limit makes your balance seemed higher to the credit scoring models which might impact it negatively even if temporary.

If you have a good credit score and want to improve it further closing a credit card account and applying for new ones will not help you in any way. Rather than applying for new credit card accounts you should ask your lender to increase the credit limit on your credit cards. This will increase the overall limit and decrease the balance to limit or the debt utilization ratio. A lender considers the increase in the limit for credit card only after you have displayed judicious usage and a good payment history.

Applying for credit in large number in a short period of time is treated as a sign of risk both by lenders and the credit scoring models. It may seem that you are trying to run yourself into a lot of debt in a short amount of time thus risking non-payment on the additional accounts. It is unclear as to how you will treat the additional debt and whether you will be able to manage it. In this case your credit score will get worse rather than better.

The best way to maintain and improve credit score is to pay all the bills on time and reduce the balances on your credit cards. A long history of good credit management reflects on your credit worthiness as a low risk consumer which reflects as higher credit scores.

Resolving Unpaid Debt On Credit Report Improves Credit Scores

There are two approaches you can take to resolve the debts that are present on your credit report and which are affecting your credit rating negatively. While credit agencies are the primary organizations that deal with the credit rating and credit history of a consumer, they may or may not have the necessary influence to remove the debt from your credit report. The national credit agencies the largest of which are TransUnion, Equifax and Experian merely collect and disseminate information regarding credit habits of a consumer by the means of their database.

In order to remove the debt from your credit report you can either contact the creditor himself or file a dispute with the credit agencies if you believe that the debt that is being reported is in error or can be removed from your credit file you to various reasons.

If there is a debt on your credit report that can be resolved or settled with the creditor himself, you should write a letter to the creditor asking for a settlement. You can also ask the creditor to stop reporting the debt or to report it as completely paid in exchange for the settlement amount. This is rather harder to negotiate as many creditors will not agree easy to do this. While they have the power to remove change information that’s the report to the credit bureaus, the credit reporting system works on the basis of honest and complete reporting on the part of the creditors. If the creditors started changing and manage letting the information that’s the report to the credit bureaus and the whole credit system would become pointless. However, settling and paying off a debt is better than having it reported as unpaid.

If the debt is in error or you believe that you can have it removed from your credit file due to technical reasons you can file a dispute with the credit bureau. The Fair and Accurate Transactions Act of 2003 gives every consumer the right to access his own credit report for free from each of the three national credit bureaus once every 12 months. It also gives the consumer the right to dispute any negative information on a credit reports that he believes to be inaccurate or false. You can request a copy of your debt board for free by telephone, mail or order it online by visiting the government authorized website off and your credit report.com.

Another instance in which the debt can be removed from your credit report by filing a dispute with the credit bureau is when the debt has been passed on to a collection agency. Since it is common for a debt to pass from one collection agency to another white frequently it often becomes difficult for the current debt collection agency to be able to validate the debt. Validation of a debt means that the collection agency who is trying to collect on the debt from you as provide complete and validate proof that it has the right to collect from you and that you are the owner of the debt. Since a collection account gets passed from one agency to another every few months, the current collection agency may not be able to validate the debt are providing the original paperwork from the original creditor. In this instant the credit bureau will and the collection agency will lose all right to collect the debt from you. This process however will apply to only one collection agency and if the debt passes on to another one subsequently you will have to repeat the process all over again.

Also, the three national credit agencies do not share most of the information in their database with one another. This means that are debts that is not present on your credit report with one credit bureau does not necessarily mean that it does not exist on the credit file off another credit bureau.

Tips for Restoring Bad Credit Score To A Healthy One

A bad credit score can result in several disadvantages a consumer. Not only will the consumer have a problem getting credit with a bad FICO score but also face higher interest rate. It is easy to improve your FICO score by following certain steps. While these steps are basic they cannot be called simple. Damaging your credit rating takes time and recovering from it might even take longer. However these following steps a register of what you need to do in order to improve your FICO scores.

Request a copy of your credit report regularly. It is estimated that over 70% of all credit reports have inaccurate data percent on it. Make it a point to check your credit report from all the three credit bureaus regularly every 12 months. We say every 12 months because you can access one credit report from each credit bureau for free every 12 months. If you need to view your credit report beyond the one free copy you will either need to order it directly from the credit bureau or use a credit monitoring service to be would to review it frequently.

Consider enlisting the assistance of a credit counseling service. If you cannot manage procedures like ordering your own credit report, reading in understanding it, deciphering the negative information and negotiating with credit agencies and credit bureaus alike, you should consider taking the assistance of a legitimate credit counseling service. It is quite possible that all you need is a little bit of advice an authorization in your financial matters that will put your finances back on track. Usually basic services such as credit education and budgeting are offered for free by many legitimate credit counseling services.

Using credit monitoring service. Using a credit monitoring service is of particular assistance when you are trying to repair your credit. A credit monitoring service will allow you to you your credit report as frequently as you like and monitor it for any changes that occur on it. You’ll be able to see what effect your actions are having on the information present on your credit report. You’ll also be able to see whether your disputes and letters to the creditors have had any change in the accounts being reported on your credit report.

Pay down Your Existing Debts

Try to pay down your existing debts as much as possible. By existing debts we mean your current accounts. Keep your credit utilization ratio at about 30% of the total credit limit available and the debt that enter 50%. The credit utilization applies to revolving accounts such as credit cards. Other loan accounts such as mortgage loans, automobile loans and personal loans affect the debt to income ratio which should also be kept as less as possible.

Use a credit card or Take a Loan

The only way to build positive credit history is to use some, credit. For this reason it is advised to keep using one credit card which has a modest credit limit or to take a small loan from a bank. A credit card with a modest credit limit is advised so that you do not end up overspending and getting yourself under debt. Using both a credit card and sticking out a small loan will help further as it will also provide a mix of credit which is one of the factors which is used in calculating your FICO credit score. Whenever you use a credit card or take out a loan your balance and payment history will be reported to the credit bureau and if you keep these accounts current the positive payment history will improve your FICO credit score.

Pay off your outstanding loans on unneeded vehicles, furniture  or other items by selling them.

Try to pay more with cash than credit card as it is a deterrent in overspending.

Make a monthly budget. The value of a monthly budget cannot be underestimated. When you go out to shop do it according to the budget. This will help you cut out unneeded expenses and will help you channel the saved resources towards credit restoration.

Do not apply for multiple credit cards.

If you have enough credit cards already do not apply for a credit card simply because there is a special offer at your favorite department store. Additional credit card applications result in additional enquiries on your credit report which can bring down the credit score as it seems that you’re attempting to open multiple lines of credit.

Items on Your Credit Report That Affect the FICO Credit Score

While the exact calculation and the algorithm used by FICO to calculate the credit score is a well-kept trade secret they have revealed certain information that they use to base the credit score calculation upon. The reason why FICO and other credit scoring organizations withhold their from the for credit score calculation is that they consider it to be a trade secret. Since you think of it as a method that has proprietary rights, revealing the method of calculation could be detrimental to their business. Both the credit bureaus and the credit scoring agencies are a profit making organizations. The make a profit by selling credit reports and credit scores to individuals and businesses.

Here are a few factors that affect your credit score.

Delinquent account affect the FICO credit score.

Too many credit accounts opened in the last 12 months have a negative impact on the FICO credit score.

No debt in credit history or no credit account recently reported Can result in an absence of the fico credit score

Balances on credit cards close to the maximum limit resulting in a high credit utilization ratio  can have a negative impact on fico credit score.

Information from public records such as tax liens, judgments and bankruptcies can also affect the credit score.

Too many recent credit Inquiries can have a negative impact on the fico credit score.

Too many open revolving accounts can also have a negative impact on the fico credit score.

Too few revolving accounts  will also affect the fico credit score.

While a higher FICO score will usually result in your issue being quickly approve of the lender, the lender may be convinced to grant your loan in spite of a substandard credit score on providing additional documents such as proof of income, making a large down payment, having a low debt to income ratio, previously done business with the current lender, provision of collateral asset etc.

What Is Rapid Rescoring Service – Does It Improve Credit Rating

What are rapid rescoring services and how they can help you repair your credit?

Rapid rescoring services came about because it was felt by many consumers that they needed to repair their credit quickly from the damage that is being done due to inactivity information present on the credit report. Many people do not realize that there are errors on the credit report till the time that they get a rude shock when they are either denied credit or are informed of their sub-prime credit score.

There are a few things you should know about rapid rescoring services.

First of all a rescoring service cannot deal with you directly as a consumer. You will have to work with a loan officer or mortgage broker who subscribes to an agency that provides this service. The agencies that provide rapid rescoring services are either independent or subsidiaries of credit bureaus. They may be small credit reporting agencies which act as an integral daily between credit bureaus and lending professionals. These agencies will also provide special services for loan officers and mortgage brokers such as merged three in one credit report or a specialized mortgage lending report.

Rapid rescoring services can only help you if you have proof of your claim. Rapid rescoring services will also help you get proof if proof can be obtained. Having a written communication from your creditor on an error in reporting to the credit bureau is one such document that can help you get the service of rapid rescoring agency. It is advisable to get as much documentation and proof in place to support your claim to take the full advantage of a rapid rescoring services. The idea behind rapid rescoring services is to get your credit report in shape quickly. The more organized you are about laying down the groundwork, the quicker this process will work for you.

You should understand that a rapid rescoring service can only remove negative information from your credit reports that is inaccurate. They also cannot remove information that is already being investigated by the credit bureau due to a dispute file by you.

Rapid rescoring service cannot promise to help your credit score. If the credit score improves on its own due to the removal of certain information then so be it.