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Credit Report & Credit Score; Credit Repair, Debt Management > Credit Score > What can “rapid rescoring” services do to me and my credit?

What can “rapid rescoring” services do to me and my credit?

By Ruth Racey
Published: Saturday, November 14th, 2009

Rapid rescoring services appeared primarily to help many consumers who are losing their loans or paying higher interest rates because of inaccuracies within credit bureaus. However, before getting too excited you should first understand the services that it can and cannot do:

  1. They cannot treat you directly as a consumer. Rapid rescoring is often proposed and done by a small credit reporting agency, which serves like a middleman between the lending professionals and credit bureaus. Though often independent, these agencies offer services such as “3-in-1” or merged credit reports for loan mortgage brokers and loan officers. Thus, for you to benefit these services, you need to work with a loan officer or mortgage broker who can subscribe to a reporting agency which provides the service.
  2. They may agree to help if you have proof or if it can be obtained. Rapid rescoring services do not help consumers or clients who have not yet started repairing their credits. You need a written document such as a letter from your creditor admitting that payment was reported late when you were actually on time. If you do not have such proof, but a loaner already acknowledged the error, a few rapid rescoring agents may find the proof for you.  However, it might take them several days or even weeks to process the inaccuracies.
  3. They can fix errors, but they cannot erase negative items in your credits which are in dispute. Again, you are required to hand them proof that there was indeed a mistake and you did not just make it all up. If the bureau is already assessing the complaint concerning an error they supposedly made, that item cannot be reviewed in the rapid rescoring process.
  4. They would not promise to give you a more desirable score. Sometimes eliminating negative entries can in fact lower your score. Strange as that may seem, it does happen.

The scoring formula in the process is to compare you against other consumers having similar credit histories. If you were unfortunately combined into a group with bankruptcies, you might observe that your score goes down after they have removed negative items. As a consequence, instead of topping the bankrupt’s group, you will drop to the bottom of the next group – those who have better credit. Normally, removing errors may not help your score too much, as you have expected, and it may not give better interest rates, either. Rapid rescoring services have no guarantees of giving the best results for you, especially your score.

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