When applying for a mortgage, your credit score is of paramount importance. It determines your approval for a home loan and the interest rate of the loan. But sometimes a credit report can turn up some unpleasant surprises or errors. This is when rapid rescoring can be a helpful resource.

Smaller credit resellers to the mortgage industry offer rapid rescoring as a method of allowing an applicant to dispute items on their credit report and have them reviewed and documented quickly, in hopes of improving the applicant’s credit score. Although consumers can dispute items on their credit reports at any time, the process usually takes 30-50 days. Rapid rescoring is usually completed within 72 hours.

The process begins with the mortgage broker submitting to the credit reseller documents that prove that items on the credit report are valid disputes. The credit reseller submits these documents to the major credit bureau (Equifax, Experian, and TransUnion) for review. Each item can cost $30-$50 per credit bureau to dispute. The documentation can be rejected, and even if the dispute is resolved, there is no guarantee that the applicant’s credit score will be changed or improved.

Rapid rescoring is not recommended as a quick fix to a poor credit report, but there are situations that merit this process. If a mortgage applicant’s credit report reveals a bankruptcy in error, it is worth pursuing rapid rescoring to correct. If the applicant just paid off student loans or made a payment on their credit card, it can take up to 30 days to reflect on the credit reports. Rapid rescoring will reflect the most up-to-date payment and balance data.

For more tips and advice on taking care of your credit, contact us. We provide credit repair services throughout St. Louis and the surrounding areas, including but not limited to, St. Charles, St. Peters, Wentzville, and Herculaneum.