What is The Difference Between Rapid Rescore and Credit Repair?
Many professionals in the real estate industry (loan officers, Realtors, etc) get confused between rapid rescore and credit repair, believing they are both the same thing. However, these professionals are wrong.
Rapid rescore and credit repair are completely different processes with completely different approaches.
Here is a comparison between both to help alleviate the confusion.
Rapid RescoreWhat is a Rapid Rescore?
1) It is a service provided by mortgage lenders to clients when they are applying for a home loan or trying to refinance their current loan. However, not every lender offers this option.
2) A client cannot do it on his/her own.
3) It requires proof (legal documentation) from the client:
a) A letter on letterhead from the creditor, with their full contact information.
b) The letter needs to specify what needs to be updated and/or deleted off the client’s report.
c) The letter needs to specify the reason why the item needs to be updated and/or deleted off the client’s report.
d) The letter needs to state the name and signature of a representative who can be contacted regarding the matter.
4) The mortgage service verifies the information on the letter and then submits the letter to the bureaus for verification.
5) Once fully verified, the account gets updated within a 3-day period, which changes the client’s scores.
6) Rapid rescore is not credit repair:
a) It cannot remove accurate information, such as late payments or bankruptcy, from a report.
b) It cannot remove unverified information such as tax liens, judgments, unpaid collections from a report.
c) It cannot add positive credit to a report.
7) The clients who are most likely candidates are potential borrowers who have just paid down a specific credit card/loan or a recent collection and want the item updated immediately. That’s usually clients with scores from the mid-600s to the 720s who are “five to 10 points off” from where they need or would like to be.
8) There is a fee associated with rapid rescores. Most mortgage lenders charge per account, per bureau – meaning the fee can be up to $200 per one single account.
Credit RepairWhat is Credit Repair?
1) It is a service available to everyone.
2) A client can do it on his/her own although a professional is always encouraged.
3) It requires no proof (no legal documentation) from the client:
a) The creditors (collection agencies, credit card companies, court system, etc) are the ones who have to prove an
account is the client’s or that the client was late.
b) The FCRA requires over 13 documents (contracts, license to collect in the state, etc) from a creditor in order for
a creditor to prove the account is the client’s.
c) If the creditor cannot prove it or does not reply to our correspondence within a limited amount of time (30-45 days) the
debt is removed and the score increases accordingly.
4) Once the time is up or if the creditor replies to our correspondence with incorrect information, the account is removed the same day.
5) Credit Repair is not rapid rescore. It cannot update the balance on a credit card within 3 days for example.
6) The clients who are most likely candidates are potential borrowers with multiple items hurting their scores and who do not have any proof the item should be updated/removed. Victims of identity theft are also potential candidates.
7) Credit repair companies charge a fee for their services which varies from a monthly subscription to a flat fee. Some credit repair companies charge per item as well.
We are professional individuals who have extensive knowledge in the credit industry and can use this knowledge for your advantage, NOT your creditors.
We charge a flat fee for our services regardless of how many items you have reported. Our service include debt validation and goodwill interventions.
We review your credit report to assess if you qualify for our services.
Once qualified we determine the best route to improve your scores, through building additional credit or repairing credit.