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Answers (7)
- George Raymondo, "The Loanranger"
- Contributions:144
Correction and Rapid Re-score is an invaluable tool that's for sure. But we lenders have other tools that we use in conjunction that make the correction process more effective. Our credit companies offer us the "Credit Analyzer" and the "What if Simulator" I have found these credit score analyzers are within a 2-5 point margin of error. For example, if a borrower contacts me and tells me they have a 580 mid score, that can be easily be from high balances or over limit revolving credit accounts. These tools allow us to plug in specific scenarios and dollar amount to see what impact paying down or paying off those debts have. And as an added layer of protection, I will always ask our customer service rep for their opinion on what I want to accomplish. To date, I have been 100% successful in turning prospective borrowers into happy homeowners thanks to these tools.
- Carl Ashton, "Carl Ashton"
- Contributions:86
In ROI terms its worth the investment (Return on Investment) especially for edge borrowers 580-620. if you have three accounts that need fixing its worth spending $ 225 - $335 dollars to Rapid Rescore to get a lower down payment (FHA or Homepath) and have a 640 to 660 or higher score.
And usually it does what it says the score will be but not always....
I use it often..........
FHA 580 is 10 % down on 300K loan thats $ 30000.00
FHA at 640 is 3.5% down on 300K that is $ 10500.00
Difference - $ 19500
Homepath at 3% down $ 9000
Homepath at 5%down $ 15000
Difference is $ 6000
And usually it does what it says the score will be but not always....
I use it often..........
FHA 580 is 10 % down on 300K loan thats $ 30000.00
FHA at 640 is 3.5% down on 300K that is $ 10500.00
Difference - $ 19500
Homepath at 3% down $ 9000
Homepath at 5%down $ 15000
Difference is $ 6000
- Jason Hall, "RapidRescoreCredit"
- Contributions:107
Yes, Rapid Rescoring can get expensive IF you do it through your 3rd party credit provider (Kroll, Landsafe, Funding Suite, etc..).
Our company processes rapid rescores for numerous lenders and also the general public directly through the bureaus. We don't use a 3rd party. Our rapid rescoring has seen a large increase in demand due to the recent RESPA changes and upfront fees charged to the client (including upfront rapid rescore costs that are no longer legal).
We have an unlimited rapid rescore program that is cost effective when you have 3 accounts or more than need rescored.
I've rescored a couple clients recently that had tremendous increases to their scores, one client saw 151 point increase and another saw a 214 point increase.
These were extreme cases because we rescored 5-6 accounts, but at the end of the day it pushed their mortgage pricing for the better.
Needless to say they were VERY excited.
I can be reached through my profile if you have anymore questions.
p.s. Credit card balances aren't the only accounts that can be rapid rescored, there are 2 others also.
Our company processes rapid rescores for numerous lenders and also the general public directly through the bureaus. We don't use a 3rd party. Our rapid rescoring has seen a large increase in demand due to the recent RESPA changes and upfront fees charged to the client (including upfront rapid rescore costs that are no longer legal).
We have an unlimited rapid rescore program that is cost effective when you have 3 accounts or more than need rescored.
I've rescored a couple clients recently that had tremendous increases to their scores, one client saw 151 point increase and another saw a 214 point increase.
These were extreme cases because we rescored 5-6 accounts, but at the end of the day it pushed their mortgage pricing for the better.
Needless to say they were VERY excited.
I can be reached through my profile if you have anymore questions.
p.s. Credit card balances aren't the only accounts that can be rapid rescored, there are 2 others also.
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
The Good: It actually works!
The Bad: It's not as "rapid" as I'd like it. Still takes a few days.
The Ugly: It gets expensive FAST. Especially if you have more than a couple tradelines to correct.
All in all it can be very worth it for a buyer obtaining conventional financing but it's always going to be better to have the buyer prequalify early and start working on any of these issues well in advance of making an offer if at all possible.
Greg
- Chris Hacker, "thelendingcoach"
- Contributions:130
Just did one last week. Got the score from 620 something to 640 something by providing a credit card statement showing a lower balance than the bureau showed.
Costs 75 bucks but that's 1 point difference in pricing.
Just make sure it's going to make a difference, revolving accounts are the easiest to predict.
Costs 75 bucks but that's 1 point difference in pricing.
Just make sure it's going to make a difference, revolving accounts are the easiest to predict.
- John King, "John_King"
- Contributions:425
Thanks Alan.
- Northpointe Bank
- Contributions:128
most credit bureaus will charge $25 a bureau per trade line. So that adds up to $75 per credit line you need rescored. It is a very expensive proposition. Additionally the documentation process required can be irritating.
Also the purpose of the rescore affects how it should be handled. If you are trying to have a credit score increased your first step shouldn't be a rapid rescore. At that cost you don't want to guess what does and doesn't improve your score. Most credit bureaus offer a service called the "what if simulator" through creditxpert http://www.creditxpert.com/Products/wis.asp this will give you a idea of what accounts to change to get a increase.
Additionally if you don't need the report changed ASAP the customer should call the credit repositories to see if they can get it removed on their own and then have it corrected on the next reporting cycle. Better to have two credit reporting fees than a rescore charge.
So it can be a useful tool, but should only be used in the appropriate context.
Also the purpose of the rescore affects how it should be handled. If you are trying to have a credit score increased your first step shouldn't be a rapid rescore. At that cost you don't want to guess what does and doesn't improve your score. Most credit bureaus offer a service called the "what if simulator" through creditxpert http://www.creditxpert.com/Products/wis.asp this will give you a idea of what accounts to change to get a increase.
Additionally if you don't need the report changed ASAP the customer should call the credit repositories to see if they can get it removed on their own and then have it corrected on the next reporting cycle. Better to have two credit reporting fees than a rescore charge.
So it can be a useful tool, but should only be used in the appropriate context.
Rapid Rescore. Lenders, what do you know about it? The Good, Bad, Ugly??
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- 5.0/5.0
- (3 reviews)
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