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Home Loans – Repair Credit Errors In Three Days!
By: Charles Essmeier
Most consumers are aware that a history of paying bills late or not at all can
hurt one’s ability to obtain a loan. All financial transactions are recorded by
three credit bureaus and offered to lenders upon request in the form of a credit
report. That report contains the all-important credit score, which determines
whether or not the borrower is a good risk for a loan. If you have a poor
payment history, you could be out of luck when you try to obtain a loan. The
same applies if there are errors on your credit report that suggest that you may
pose a greater risk to the lender than you really do. Traditionally, it has
taken months to straighten out problems on a credit report, and borrowers who
are eager to close on a mortgage or home equity loan may not have months to
wait. What can be done? A relatively new mortgage-related product known as rapid
rescoring can, in some instances, fix problems on a credit report in as little
as three days.
We have covered the topic of credit repair in previous articles. The notion that
there are companies that can fix bad credit reports is a myth. If you have a
history of not paying your bills, no company you can hire can make that
particular problem go away. The only way to fix that is to become responsible,
pay your bills and retire your credit card balances. On the other hand, if you
find yourself ready to buy a home and suddenly discover that there is an error
on your credit report that will impair your ability to qualify for a loan or
your ability to obtain a good interest rate, there may be a solution. Companies
that specialize in rapid rescoring work with both lenders and the credit bureaus
to expedite the process of removing errors from a credit report. It’s not magic;
you will need to provide written proof that the error is legitimate, but once
you submit it to your lender, they can pass it on to the rescoring company, who
will handle the rest of the transaction. The process is often completed in three
business days, although it can sometimes take as long as two weeks. Still,
that’s a tremendous improvement over the one to three months it may have taken
in the past.
Rapid rescoring has turned out to be a lucrative business for the companies that
specialize in it, and lenders love it because it helps more buyers qualify for
loans. While it is a nice service to have available, most consumers would be
better off preventing such errors in the first place. The best way to do that is
to regularly check your credit report for errors and keep it up to date. You can
obtain a copy for free from the free credit report Website. In a pinch, however,
rapid rescoring has been a tremendous last-minute tool for saving borrowers from
being turned away from the house of their dreams.
About the Author:
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro
Marketing, a firm devoted to informational Websites, including
www.End-Your-Debt.com,
a Website devoted to debt consolidation information and
www.HomeEquityHelp.net,
a site devoted to information on home equity loans. |
