Rapid Rescore

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Monthly Archives: October 2015

Who offers a Rapid Rescore?

RRRapid rescoring is a process that’s been around for decades.  It originated in the mortgage industry to allow credit account information to be updated sooner than a normal reporting time from your creditor or collection agency.  This expedited update would typically raise a credit score in a matter of days to help mortgage applicants approval for their loan.

So why aren’t some mortgage lenders offering rapid rescore?  What changed back in 2011 were consumer protection rules, namely RESPA (Real Estate Settlement Procedures Act).  This law dictates what fees can be charged during your mortgage transaction.  Section 8 of this law deals with kickbacks, fee-splitting, unearned fees.  The charge for a rapid rescore would be under the category of “unearned fees”.

Mortgage lenders purchase their credit reports from 3rd parties (Kroll, Credco, Funding Suite, etc..) which offer the rapid rescore service.  But the consumer can’t pay these 3rd party companies for the service directly. The fee is charged to the lender, thus the lender would then have to pay for that cost themselves.  In some cases, that cost can be expensive if there are multiple accounts that need rescoring.  A typical rescore costs approximately $90-$120 per account that gets rescored.  If the loan doesn’t close, or the client takes their loan to another lender, they can’t send the bill to the applicant.  So in order to mitigate their risk, most banks simply state that they don’t offer the rapid rescore service.

My process of rapid rescore IS allowed due to the fact that we aren’t the lender.  We aren’t governed by RESPA laws as we aren’t part of the mortgage application directly.

There are credit repair companies spreading mis-information about rapid rescore and how it’s a RESPA or FCRA violation which is untrue.  They are spreading these lies because they don’t have the ability to offer rapid rescoring for their clients as they don’t know how it’s done.  Also there are loan officers that don’t know that a rapid rescore process is available outside of the mortgage industry, that’s why they think only a mortgage lender can do this process.

We are the only direct to consumer company that offers rapid rescoring by itself, or in combination with our credit repair program.  It’s extremely effective in raising credit scores 40, 80, 100+ points in some cases.

Jason Hall

President and Certified Credit Expert

Direct- 949.505.9971

Mobile- 808.633.5023

Fax- 866.567.8054

WWW.RAPIDRESCORECREDIT.COM

Why Credit Cards Are Good For Your Credit Score

Credit

On a weekly basis I consult dozens of people regarding their low credit scores.  One of the topics of discussion are credit cards.

Credit card accounts are the most versatile accounts you can have on your credit report.  They have a component to them that drives your credit scores more than a mortgage or auto loan.  This is your “utilization” or your balance in relation to your credit limit.  If you carry a balance on your credit cards, it can lower your credit scores.  Your auto loans or mortgage loans are installment accounts that you can’t increase your balance like a credit card (revolving account).

If I see that they aren’t using credit cards I recommend opening a couple to add in some positive credit.  I often hear “I don’t like credit cards, I don’t like going into debt”.  Most people associate credit cards with debt, because they don’t use credit cards as they were initially designed, to use and pay off monthly.

One of the most popular Rapid Rescores we do are for credit card balance updates.  We submit the request to the credit bureaus and in 5-7 business days the balances are updated.  Once this is done it increases your credit scores.  I’ve witnessed credit score increases of 40, 60, even 80+ points by paying down credit card balances.

Credit card accounts are the easiest types of credit to obtain.  If you’re having trouble finding a good credit card with low credit scores, I’d start with Open Sky Secured Visa .  This is a low APR, low annual fee card.  This credit card is available to anyone with a checking account.  They don’t pull credit to approve you, so there’s no “hard inquiry” into your credit report.

For more information about how to raise your credit score, feel free to contact me direct.

Jason Hall

President and Certified Credit Expert

email:  jason@rapidrescorecredit.com

WWW.RAPIDRESCORECREDIT.COM

Your credit card balances compose 30% of your FICO credit score.

When you are not using credit cards, you aren’t tapping into the most versatile credit accounts you can have on your credit report.