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There are times when our credit score is particularly valuable – if not critical. If you’re in the middle of applying for a mortgage or trying to get funding for a new car, your credit score will directly affect whether you’re approved or not, and the rate you will receive. But what if there’s a glaring error on your report, one that is costing you quite literally thousands of dollars? Is there any recourse? Fortunately, yes. Credit re-scoring services – which are sometimes referred to as rapid re-scoring services – work with third parties such as mortgage brokers to quickly repair your credit score. Sometimes, this service can get the job done in as little as 72 hours! It might sound like a dream, but it’s actually possible. Here’s how it works:
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A credit re-scoring service is a third party that works directly with credit bureaus on behalf of your lender. You should have proof of the error – proof that it actually is an error, and not simply that it’s an unattractive mark on your credit – to start the process.
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The service and the credit bureau work together to verify the error and quickly fix it. Most credit bureaus have dedicated staffers who work directly with these re-scoring services. The reason they have the personnel on staff is that it’s in everyone’s best interest to get the information accurate – credit bureaus work with banks. If a bank can’t lend you money because of an error in your report, it’s likely the bank will terminate its relationship with the credit bureau.
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After the service and the bureau have verified the information, your new score is quickly calculated. You might ask why you can’t do this on your own. Unfortunately, the consumer isn’t the client of the credit bureau – it’s the lender. Lenders work directly with the bureaus all of the time, while bureaus simply have information about millions of consumers on file.
Consumer tips
While a rapid re-scoring service has absolute value during a particularly stressful time in life, consumers might not need to use their services all of the time. Instead, consumers should work to prevent errors from hampering their scores in the future. Here are some tips to stay safe:
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Always monitor your report: No matter if you’re looking for a loan or are simply doing a review, it’s crucial to know what’s in your credit report. If you find an error as minor as a misspelling or as major as an incorrect account, immediately report the error to both the credit bureau and the lender.
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Know how to keep your score high: There are several strategies to employ to keep your score high, but two of the easiest are to always pay your bills on time, and to be cautious when opening accounts. That means do not randomly open and close credit accounts. If you open a credit card account, keep it. Don’t close it after three months and then open another one. The credit bureaus like to see discipline from consumers.
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