"Ask the right questions of your borrower, get the right results"
ARC’s Rapid Rescore is an effective way to improve your borrower’s midscore. On average, ARC achieves midscore increases of 25 points and an average of 97% of rescores ordered see an overall increase. However, based on our data analytics, we do see up to 20% of orders not hit the minimum desired midscore. We’ve compiled a list of the most common reasons, and what your borrower can do to avoid hurting their chances for a midscore increase.
Borrower adds new debt (balances increase.)
Borrower incurs a new late payment.
Borrower tradeline that was not on original report is now reporting (new mortgage, new car, new credit card, etc.)
Borrower does not complete recommended action (i.e. ARC recommends paying revolving balances down to 20% and the borrower only pays it down to 56%.)
Borrower has a new collection reporting on the new credit report.
The above actions will have a different impact depending on the overall health of your borrower’s credit file. For example, if your borrower’s top credit factor is a high amount of revolving debt balances, adding new debt will severely hurt their chances of achieving the desired midscore.
Here are some questions you can ask your borrower before ordering a rescore. If your borrower answers yes to any of the following questions, you may want to contact ARC’s Rescore Department before ordering a rescore.
Have you applied for credit in the last 30-90 days?
Have you purchased any items on your revolving accounts in the last 60 days?
Have you done anything to increase your balances on your revolving accounts?
Are there any installment loans missing on the credit report (even newly sold mortgages?)
Did you receive any letters from your creditors that your revolving account credit line will be decreased?
Are all recent collection accounts showing on the credit report?
Our Rescore Department is always available to review credit reports, discuss potential score improvements, and help you better understand what factors are impacting your borrower’s midscore. Please contact us at rescore@arcreports.com or call 800.992.1058 (option 5.) We look forward to the opportunity to provide concierge service to you and your borrower.