Quick Answers: The Difference Between a Credit Supplement and a Credit Rescore
answers you want to know
Ever have trouble understanding the difference between a Credit Supplement and Rescore – much less, in what case you would need one over the other? Or just have some general questions that have been on your mind?
Well, here are a few answered questions that we’ve heard from clients and other lenders over the years to help you figure out that grey area.
Because of the Fair Credit Reporting Act, mortgage lenders and brokers absorb all fees as an operational cost of doing business. This is because a Credit Rescore is a business-to-business transaction rather than business-to-consumer.
Experian only requires a Consumer Dispute Removal Letter signed by the borrower. TransUnion will either remove the dispute comment with the letter or contact the creditor to verify. Equifax will accept the Dispute Removal Letter for all comments with exceptions to “consumer disputes reinvestigation in progress.”
The bureaus require either a current statement or online account printout showing account numbers and an exact, up-to-date balance. All documentation from the creditors must be on the creditor’s company letterhead and signed by a company representative. Other supporting documentation can be provided, but the bureaus reserve the right to accept any item that overrules what is being reported on a credit report.
Bankruptcy filings aren’t considered acceptable documentation for rescoring. You’ll still need to obtain letters from the unsecured property claims, such as credit cards and collections, indicating they’ve been removed via bankruptcy.
Bureaus will only accept a Credit Verification Release form with the same the account number on the borrower’s credit report. You can get this form by calling the AMEX Credit Bureau Division at 800 874 2717.