Lenders depend heavily on your FICO score to determine your creditworthiness for a car loan, home mortgage and consumer credit cards. Your score may not always reflect accurate information, but true credit missteps take time to repair.
Expert Insight
"There's no quick fix for creditworthiness...it takes time, a conscious effort and sticking to a personal debt repayment plan," according to the Federal Trade Commission. The FTC warns against credit repair companies that claim to increase your credit score by removing negative accurate information from your report; they're illegal.
Potential
Some mortgage companies can offer applicants a service called rapid rescoring, which expedites the removal of outdated or erroneous information from the credit report, thus increasing FICO scores in three to five days. The mortgage specialist has an account with the rapid rescoring company, which has a relationship with the three bureaus. A fee of approximately $30 applies for each correction.
Time Frame
Creditors and collectors generally report to the bureaus once every 30 days. If you pay a debt, your score does not reflect the update for at least 30 days.The same is true for corrections you submit to creditors. They have 30 days to investigate the correction and 30 more days to report the update to credit bureaus.
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