August 16th, 2021 10:34 AM by Sam Kader MLO130505
What is Rapid ReScore?
A premium service that assist borrowers who have erroneous and derogatory information on their credit files that may be negatively affecting their FICO scores or if borrowers want to accelerate payoff information on their accounts. Our credit vendor can assist in expediting corrections to credit files at the bureau level. After corrections are made, files are re-accessed in order to obtain an updated credit score. Files are corrected and credit scores updated within 3 - 6 business days (instead of 30 days).
What is the Rapid ReScore process?
The consumer must contact the creditor to obtain supporting documentation for the requested change. We will provide copies of this documentation to our credit vendor. The credit vendor then verifies the documentation and forwards to the bureau(s) for the profile to be updated. The bureaus notify credit vendor when the file is updated and credit vendor pulls a new report to receive the updated score and releases the new file to us.
What documentation is required to process a Rapid ReScore?
The bureaus require letters from the creditors or certified court documents. These documents do not have to be originals, but must be verifiable. The letters must include the creditor name, address, phone number and a contact name. Consumers must contact the creditors in questions directly to obtain the documentation.
How much does one change in a credit profile affect the score?
In general - paying off credit cards/trade lines and removing derogatory remarks will increase your score (all else the same). However, due to the multiple factors involved in determining a credit score and the dynamic on-line nature of credit scoring, it is impossible to determine how much one change will affect a score.
If derogatory information is removed from a report, will the score automatically increase?
In most cases - Yes. However, it is also possible that a score will not change and it may even decrease. Scores are not based solely on derogatory information. Other factors such as length of credit history, types of credit in use and the pursuit of new credit are also considered. The analysis of the credit profile can include one or more of these mitigating factors, which may change in conjunction with the derogatory information in question.
Why does Credit Vendor charge for Rapid ReScore?
The bureaus charge us for the accelerated file maintenance service and for re-pulling the credit report after the file is updated. In addition, since this is an entirely manual process, there are significant labor costs. The cost for a rapid rescore is $40 per account per bureau generally completed within 3 to 6 business days. We can shorten it to 2 to 3 business days by paying a rush fee of $30 per account per bureau. For example - you just paid off your auto loan on Monday - Rapid ReScore with rush fee will cost you $210 calculated as follows:
1. $40 x 3 credit bureaus = $120
2. $30 x 3 credit bureaus = $90 (Rush fee optional. Else it will be completed in 3 to 6 business days).
Total of $210 completed by Thursday. On this day - your credit scores will be updated by all 3 Credit Bureaus - TransUnion, Equifax and Experian will reflect that your auto loan is now at 0 balance.