Rapid Credit Report Corrections 

Need to correct errors on your credit report immediately? Looking for a higher credit score in order to qualify for a loan program or obtain a lower rate? The difficulty in the past has been in trying to orchestrate corrections from creditors to the credit bureaus. While this sounds simple, imagine having four items needing updating and having to send them to three credit bureaus (TRW, Experian, and TransUnion) for two borrowers.

Credit reporting companies have developed a process to help borrowers within 48 hours improve their credit scores. Erroneous, derogatory information can now be corrected on credit files for an updated score.

The repositories require letters from the actual creditors or certified court documents. Originals are not required, but must be verifiable. Letters must include creditor name, address, phone number, and a contact name. Consumers are responsible for obtaining acceptable documentation.

Credit scoring uses very complex models that are proprietary to the credit bureaus. Scores can even go down due to more credit checks. However, a professional loan officer, by evaluating the credit report, should be able to determine if Rapid Re-Check would produce worthy results .

However, other applications may include:

• Unpaid collections that are indeed paid
• Public records that are incorrect (court liens, bankruptcy)
• Duplicated information: negative-collections, liens, excessive late payments. (Note: several firms may report the same student loan.)
• Excessive open accounts
• Collections that could easily be paid and corrected

Clients with credit files that have serious credit factors shown as outstanding or incorrect have the most to gain. For example, a client with several small collections may be able to simply pay them via credit card, report the corrections, and realized a 35 point increase. This increase will reduce his interest rate by 1.0%. Two years later with substantial equity in his home, he may refinance onto a 7.0% rate.

Due to the 48 hour commitment, the following two applications are not eligible:

• Bankruptcy information
• Possible non-applicant credit (items reported that do not belong to the applicant)

The extra cost involved can be significant. The price is $25 per borrower, per tradeline, per credit bureau. For example, the fee for two borrowers with two trade lines to be corrected for all three credit bureaus would total $300 (2@2@3@$25). However, for compliance reasons, the client cannot be billed directly for this service. The charges are made to the lender for the expedited service.

By Michael Sarver, Epic Mortgage, Portland, OR