Rapid Rescore Timeframe
Rapid rescore timeframe is usually from three to five business days. This involves the update of the payment status, credit file, and credit score of the customer. The customer's unique situation also affects the rapid rescore timeframe.
The rapid rescore timeframe depends on the items being updated. The rapid rescore process involves the following steps. The first step is to determine the report data weighing down the credit scores. Credit scores are affected by five factors, such as payment history (35% of FICO® Score), amounts owed or credit utilization rate (30% of FICO® Score), credit history length (15% of FICO® Score), credit mix (10% of FICO® Score), and new credit (10% of FICO® Score).
The second step is to verify whether the negative items are able to be corrected. Negative items can be found within the account tradelines displayed on a credit report. These types of accounts include installment credit accounts and revolving credit accounts. Installment accounts are fixed monthly payments like mortgage and auto loans. Revolving credit accounts, on the other hand, are credit card balances or other lines of credit.
The next step is for the consumer to pay down the installment or revolving accounts balance, if possible, in order to lower the credit utilization ratio to under 30% of the credit limit. Consumers can also gather documentation that proves an error in the items on their credit report. Consumers can file a notice of dispute about the completeness and accuracy of any item in their credit report under the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that oversees the collection of consumers' credit information and access to their credit reports.
If a dispute is necessary, the consumer would then contact the company reporting the disputable item on their report to provide documentation of the error or proof of updated records for loan or credit payments. The FCRA states that companies who receive a dispute from a consumer need to convey the notice of the dispute with the documentation received from the customers to each of the three major credit reporting agencies or major credit bureaus.
The last step is to order the rapid rescore and submit the necessary documentation using the documentation provided. The new credit report is usually sent to lenders within three to five business days.
