Wizard conjures up better credit scores

CreditXpert recently announced a new tool for loan officers to use in helping applicants qualify for better rates and terms. Loan officers can enter a target credit score and Credit Wizard will identify possible steps to achieving it.

“As mortgage rates climb, lenders are looking for better ways to do business. The Target Score feature will help lenders approve some applicants who would normally be declined and qualify other applicants for better rates,” said David G. Chung, interim president and VP of business development at CreditXpert. “This is not score manipulation. It’s about helping lenders close more loans and helping consumers better qualify so that they save money over the life of those loans.”

The tool does not change the applicant’s credit score, but instead lays out possible ways to increase it and estimates what effect those changes would have, said corporate communications manager Bill Warren.

“It gives lenders the ability to help applicants instead of just turning them away,” Warren said.

In one example, the company estimated an applicant could save approximately $11,650 on a 30-year, fixed-rate, jumbo mortgage of $400,000 by qualifying for a lower rate. This example is based on a typical profile of borrowers who have a mortgage, two car loans and more than $9,000 of credit-card debt. Credit Wizard determined the applicant could obtain the nine-point credit score improvement needed to qualify for the next lower rate by spending $1,185 to pay down the balances on a retail card and a bank card, the minimum outlay to achieve this point gain. While such applicants have good credit, they may still fall short of qualifying for the best rates and terms available.

CreditXpert provides credit management tools to help lenders originate loans and manage customer relationships. Products and services are offered through credit reporting agencies, consumer finance information providers, credit counseling agencies, mortgage brokers and lenders.