What’s the Fastest Way to Fix Errors in My Credit Report When I Apply for a Mortgage?

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Whenever you notice a mistake in your credit report, you should always dispute it – with the credit bureaus or the creditor that reported inaccurate information. Getting an error removed from your credit file usually takes about 30 days to be completed.

When Applying For a Mortgage, Get Credit Report Errors Removed in Just 48 Hours

However, if you’re in the market for a mortgage, you can have mistakes in your credit report fixed in as little as 48 hours through a process called “Credit Re-Scoring.”

Credit re-scoring (also known as rapid re-scoring) allows bankers, mortgage brokers, and other lenders to submit proof of a mistake in your credit file directly to the credit agencies. The proof has to be something official, such as a letter from the IRS showing that a tax lien has been paid or a court document that indicates a previous bankruptcy was discharged on a certain date. With satisfactory proof and a request from a mortgage professional, the credit agencies give your file priority status, and quickly update your credit information electronically. This way, an error in your credit file doesn’t cost you more money or jeopardize your chance of getting a mortgage.

How to Get Rapid Re-Scoring Done on Your Behalf

One limit to this process, however, is that you can’t initiate a request for credit re-scoring on your own. Only lenders and other mortgage professionals can do so. The good news is that some companies, such as Novi, Michigan-based Credit Technologies (http://www.credittechnologies.com), can help you connect with a lender that can request credit re-scoring on your behalf. Credit Technologies provides this information free of charge to consumers. They’ll even email it to you, so you can get a list of lenders quickly. Alternatively, if you already have a lender, but they don’t know about credit re-scoring, have the lender contact Credit Technologies directly at800-445-4922 in order to do credit re-scoring. Credit Technologies doesn’t guarantee that your score will increase as a result of credit-rescoring, but the company does report that the typical client experiences a 30-point jump in his or her FICO score.

If you can get your lender involved, your credit report will be updated much faster than you could have done on your own. Fixing erroneous information that is lowering your FICO score could mean the difference between your getting a so-so deal on your mortgage, or getting a home loan with a great rate and attractive terms.

Excerpted from Your First Home: The Smart Way to Get It and Keep It

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