It is not unusual to have problems with your credit report. Most people going for credit repair realize there is some problem or the other with the reports they received from the three credit bureaus.
These problems can arise from wrong information received from creditors or errors made by the credit bureaus in calculation.
Vital for loan approval
Whatever the case, these types of errors have a big impact on the credit score. Because your credit score is one of the most important factors when applying for a loan or credit, any kind of problem with the credit report can significantly delay the approval process. These problems can be fixed by credit repair but it can be a long and time consuming process.
If you get to know of these problems in advance you will still have enough time to fix them before applying for a loan. But if you get to know of them in the middle of a loan approval process then there is the risk of your loan application being denied.
As we all know, it takes time and effort to improve FICO score. But when applying for a loan it isn’t possible to wait so long. This is when rapid rescoring helps.
What is rapid rescoring?
In a situation where you have applied for a low interest loan but the problems in your credit report could get it rejected, one of the fastest ways you can increase FICO score is through rapid rescoring.
In fact, with rapid rescoring you can improve your credit score by 100 points in as little as three days. Rapid rescoring does not involve manipulating your credit score. It simply means fixing the errors quickly where there is no time.
For instance, you could lower your credit utilization ratio by paying off the outstanding balances on your credit cards as quickly as possible.
Sometimes there are errors in credit reporting, such as late payments that were actually on time. If you have proof that what is mentioned on your credit report is incorrect, you can take steps to fix this error in a day or two.
Downsides of rapid rescoring
A rapid rescore doesn’t affect credit score negatively. In fact it is counted as one of the ways of credit repair. But the problem is not many lenders allow it.
If there are errors on your credit report most lenders will not give you time to fix them after you have already applied for the loan. The only places where you will be allowed at a rapid rescore is with a mortgage lender. If you have other kinds of loans rapid rescore may not be allowed.
Having said that, rapid rescoring remains a popular way to quickly increase FICO score by eliminating problems from the credit report. Get in touch with a credit repair service to know more.