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I spoke with a lender today. I just paid my utilization from 90% to 5%, and will report as such at the end of the month. The lender said RR can sometimes hurt your score...how?
If something changes for the worse then the score will drop. I'm not trying to be a smart- there isn't anything about the process itself that will hurt the score. It just updates the info faster than letting it report as usual.
So...why wouldn't I go ahead and do it? The lender made it sound like there could be unintended consequences. There is no reason why I wouldn't want to go ahead and RR it instead of wait another month for it to update on its' own?
I KNOW that I don't qualify now. And I think I should qualify after the utilization reports. So should I go for it or not?
I can't grasp the concept that the new balances reporting earlier than they should would hurt anything.
I think you should ask said lender how it could hurt, bc maybe he knows something the collective "we" don't about how RR works. I have yet to read a post where someone actually posted the results of the RR. Lots of people talk about it but don't come back to report, or like myself, ended up not having to RR bc the scores came up on their own.
the rapid rescore process itself does not and cannot hurt the score.
what can? a new collection popping up for example.....
you see, after the item is updated... a new report is pulled and scored.
something changes on the report other than the item being updated and you could have problems
Rapid rescore also counts as an INQ which can cause you to lose a few points but not always. YMMV
Have to remember even though when applying for a mortgage the INQ's are grouped together for a 45 day period and only counted as 1 INQ for scoring purposes. Until that 45 day period arrives those INQ's are counted separate for scoring purposes. Once that 45 day period arrives they are then grouped together according to how FICO ties the INQ's together. If you are pass the 45 day period then it will count as a new INQ.