Credit Repair - Las Vegas Credit Repair

The first thing to do if you suspect your credit might be slightly "tarnished" is ask your mortgage lender! There are a lot of "credit repair" companies around who say they can "fix" it for several hundred dollars per month over a six to twelve month period. But often your mortgage lender is able to do it for you, or tell you how to easily go about it for a much lower cost and much more quickly.

Have your mortgage lender run your credit, and let him/her tell you what they think the best approach for your situation would be. And even if you already have good credit, sometimes clearing up one or two items on your credit report will allow you to obtain a better interest rate.

One local Las Vegas mortgage lender, Residential Capital Mortgage, has developed a proprietary credit reporting system capable of helping prospective purchasers determine the quickest way to boost their credit scores within 30 to 60 days. This “smart” system, Credit Compass, pulls the borrower’s credit from each of the three major credit reporting bureaus: Experian, Equifax and TransUnion, and then prints out a summary for each credit bureau. The summary details exactly how many points the borrower’s score will be raised at each bureau if they pay off/down certain credit lines, pay off specific collection accounts, or have items deleted from the report that should not even be there.

Most lenders “guess” which items are having the most adverse affect on a borrower’s credit. They have the buyer pay off a bill or two and then have to wait for a credit rescore to determine if the borrower will be eligible for a loan. If the lender guesses incorrectly, the borrower could spend thousands paying off the wrong bills and still not be able to qualify. Residential Capital’s innovative new system allows the borrower to prioritize which items on the credit report should be addressed first for the least amount of money out of pocket to raise the borrower’s scores enough to qualify for a purchase.

Once specific items have been identified and taken care of, the borrower’s loan officer would contact the credit reporting bureaus and have them initiate an immediate credit rescore. Already many borrowers have had their credit scores raised 50 to 60 points within a short time period, allowing them to buy a home or condo far more quickly than with conventional credit systems. And for far less money.

All types of loans use the “middle” score from the three credit bureaus to determine eligibility. FHA and VA loans require a minimum 620 credit score to qualify for a loan, but the rate is the same no matter how high the score. Conventional loans require higher credit scores, and the interest rate charged on a conventional loan varies according to the credit score based on federal risk guidelines. Raising a credit score from 680 to 720 could save 1/4% or more on the interest rate charged. (By the way, this lender’s rates and fees are consistently lower than Bank of America, Wells Fargo, and Chase.)

And the cost? A mere $22.00 for the credit report AND summary! If the borrower pays off a credit line or has an item deleted from the credit report, there would be an additional charge of $25 per item per credit bureau to have the credit rescored. The lender would only have the credit score updated on as many credit bureaus as necessary to increase the borrower’s middle score quickly, within three to five days. For example, if the buyer needs two items updated on two different bureaus, the cost would be $25 per item or $50, times two credit bureaus = $100. The third bureau will automatically update at the beginning of the month, so in most instances there is no need to pay for a quick update on all three credit bureaus, and sometimes an update is only necessary on one credit bureau. The $25 per item is charged by the credit bureaus, and is NOT a lender charge.

To see what Credit Compass might be able to do for you, just fill out an Online Mortgage Loan Application