Banks and mortgage lenders require a credit score to approve both your construction loan and permanent mortgage. Private lenders may not necessarily require a score but you can expect your credit report to be reviewed. When scores are used for an approval it streamlines the process for both yourapid rescore and the bank.

But when your score isn’t good enough to get qualified and you’re wondering what happened, it might be the fact that someone is claiming you didn’t pay your bill on time.

Credit reporting agencies are filled with mountains of consumer data. From the time you first opened up a credit account to where you’ve lived over the past 30 years, it’s all in the bureau’s database. It’s easy enough for a mistake to pop up. Yet a credit score doesn’t know if an outstanding debt is a mistake or not but assumes the information is true and scores it as such. If the construction loan requires a 640 score and yours is below 600 due to a mistake, what can you do?

To quickly resolve the issue you need to identify who is reporting the negative information, document your side of the story then provide your documentation to your loan officer. That’s right, your loan officer. Banks can take your validation that the bad information is wrong, send it to the bureaus who will verify your claim with the creditor. Say that there’s a collection account but you have proof you paid that debt off long ago. By providing a copy of the receipt for the account showing as “paid in full” the credit bureau can then run another score, this time leaving out the negative information.

This is called a “rapid rescore” and it’s a service that you have to pay for but it’s a marginal amount compared to getting your scores corrected. New scores can be turned around in as little as 24-48 hours and your lender can rerun your approval based upon the new numbers. Don’t let your construction loan be turned down due to bad information. You can fight back with a rescore.