How to increase your credit scores
Posted by Mords1944 on May 9th, 2020
Credit rating is fast becoming one of the hottest topics in the mortgage industry and has been under attack recently by consumer groups and some members of Congress.
Are some of the strongest attacks on credit ratings focused on consumers? Seems unable to change the credit score to change a denial to an approval fast enough to salvage a deal or avoid having to pay a higher interest rate, as some home loans are now priced according to the credit score. borrower credit. Since the score is based on information - positive and negative - on a consumer credit report, incorrect information, especially if that information is derogatory as defined by the model, can lead to a lower than guaranteed score. But, with the system now in place, correcting and removing negative and incorrect information can take weeks, and even after the creditor corrects the information in their own files, the creditor usually takes weeks longer to report via magnetic tape. , the new, more positive information for the credit repository (of which there are three: Trans Union, Experian - formerly TRW - and Equifax, which dominates here in North Carolina). But congressional, regulatory, and consumer pressure is coming to this cumbersome paper-based system of "fixes." Recently, a credit industry official told me that the credit bureaus, which are stores that sell reports compiled by the three large repositories and that have the most direct contact with consumers, are negotiating with the repositories in order to help consumers. to make changes faster. Under the proposal, the local office will verify consumer complaints directly with the creditor, and if the Shop Simplio Credit Score confirms that the information is, in fact, incorrect, the office may change the so-called "raw" credit file directly with all three of repositories without waiting for the creditor to review the complaint, update their files, and then send the updated information to the repository. A process that, as I pointed out, can take weeks, long enough to close a deal. This is an important development. By changing the flat file, you can quickly generate a new, possibly higher, score, salvage a deal, and address consumer and congressional concerns.