Find out all sides of credit rescoring

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The Truth about Credit Rescoring
2 years ago
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Many people have heard the term credit rescoring, and have incorrectly assumed it must always be a scam. However, when getting a mortgage, credit rescoring can be a consumer's best friend. For those with credit scores lower than 680, the benefits of trying to get credit rescoring outweigh the time and effort.

Keep in mind that credit rescoring is usually best done for a mortgage. In addition, it usually is only mortgage lenders who can access a rapid rescoring service. How it works is your loan officer contacts someone who deals with the credit reporting agencies Equifax, Experian, and TransUnion on a regular basis. He or she tells this person that a client has incorrect items on a credit report that need immediate investigation. This can get a complete removal of a negative item from a credit report in three days to two weeks, as opposed to waiting at least a month for even a response to a consumer-initiated investigation.

Only those items that are truly incorrect are eligible for credit rescoring. If you have valid late payments, collections, tax liens, and judgments, then this kind of service cannot help you increase your credit score. You might want to try to hire a credit repair firm or work on your credit reports yourself, because many of these accounts might have some inaccuracy within them. If a company guarantees they can get you credit rescoring, then it may well be a fraud.

If you have documents to prove the troublesome credit report entries are really incorrect, then you have a great chance of credit rescoring. Sometimes people's FICO score have gone up 50 points quickly. This makes you eligible for good mortgage rates, and will save you money over years.

Do not hesitate to ask your mortgage broker or loan officer if he or she can try to get someone to do your credit rescoring. Most reputable companies have legitimate contacts that have more clout than a simple consumer complaint in getting inaccurate information out of your credit file.

by Stephanie Mojica
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