WHEN TO RAPID RESCORE

Typically people rapid re-score information on their accounts when they are getting ready to use their credit to apply, purchase or refinance. It is during this time that you need to have the most current information updated on your credit report especially if you have just paid down some balances on credit cards.

Before you use your credit, it's a good idea to pull a copy of your credit report. Review each one of your accounts and ask the following questions:

1. Are my account balances reporting accurately and are they up to date?

2. Are any of my accounts past due or upside down?

3. Can I reduce the balances on any one of my revolving accounts below 50% or 30% of the credit limit? Or better yet, a zero balance?

4. Are my accounts active?

 
If you see that any of your accounts are past due or upside down you will definitely want to fix those accounts up. Being upside down or past due can severely reduce your credit score. It's really almost as bad for your credit scores as a new 30 late payment. 

If you review your credit and find that you need to make adjustments or updates, it it highly advisable that you do so. The balances on your accounts influence 30% of your credit score which is 255 points. Just by reducing the balance on one of your accounts to an amount that is below 50% of the limit can increase your credit score by 7-15 points. If you reduce two or three, then you will see an even greater increase.

One of the best things you can do for your credit scores is to pay your revolving balances down to $0.00. This will maximize your credit scores.

If you see that the date of last activity on one of your revolving accounts is over 12 months or you see that there has been no new information contributed by that account in some time, the account has gone inactive and needs to be utilized. I always looks for old department store cards or jewelry accounts. If you see an account that hasn't been used in a long time, go out and make a purchase on that account, then get me a letter from that creditor reflecting the most current balance. In this case, I will rapid re-score the account to actually show a balance since this will prove that the account is active again. This can contribute a large amount of points to your credit score if you have a lack of credit. It's all very subjective of course. If you have a few open revolving accounts but they lack seasoning and you end up re-activating a jewelry account you opened 8 years ago then your credit scores are going to increase in a huge way because you are adding some serious seasoned accounts to your FICO score evaluations. I'm sure many people have low credit scores due to inactivity, maybe they have no scores at all. They might not be aware that all they have to do is spend a few bucks on their accounts to have their credit scores sky rocket.

If you make an adjustment to your account balances or you see that your credit report doesn't accurately reflect the most current balance information, you may want to process a rapid re-score to make sure that the balances information gets updated. If you pay down your credit card today, it can take anywhere from a couple of days or a couple of months for that account balance to get updated on your credit report. That's why we process rapid re-scores. To make sure that stuff gets updated in time. There's no sense in walking into your dealership or bank and getting into some type of financing with outdated credit information on your report. That 10, 15 or 25 points that you're not getting because your credit report is outdated could cost your thousands, sometimes millions of dollars in interest and finance charges.

 

Warm Regards,

 

Jack B. Olson

Jack B. Olson

Account Executive

 

P - (866) 979-1099 ext. 205

F – (866) 979-1097

jolson@myezcreditrepair.com

www.creditrepairwholesale.com