A Faster Way to Improve Your Credit Score!
For some time now, my credit report provider has offered a service to correct and re-score a credit report within 5 to 10 business days. Considering if you attempt to get your report corrected of some error or derogatory credit by trying to work with the credit bureaus themselves, you might get your credit score improvement within 3 to 6 months. That’s a big difference!
For someone in the process of purchasing a home and a 20 point improvement in their score results in a better interest rate, this is a valuable tool. But it isn’t cheap. My report provider charges $30 per credit bureau per tradeline. For instance, if you had a credit card company reporting late payments, but you have the documentation to show that the bill was paid on time and you wanted to have your report corrected, the cost would be $90 to have it corrected and for your report to be re-scored.
A recent client, who was able to provide documentation that two accounts were paid in full and closed, got a 20 point improvement in her credit score which cost her $180. The improvement of her score resulted in a reduction of her interest rate which saved her over $200 per month on her mortgage payment. For my client, those savings were well worth the fee to have the report re-scored quickly.
The downside is the reporting company makes no guarantee that your score will be improved even after going through their re-scoring process. So it is possible that you could spend the $90 per item and it not impact your score enough to make a difference in the terms of your loan.
That’s when you need the assistance of a mortgage professional to help you evaluate ‘the cost versus the benefit’ and whether or not re-scoring is right for you.