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Rapid rescoring is a process that allows borrowers to quickly update their credit reports to reflect recent changes. This may help you to improve your credit scores for a mortgage application.
Getting a mortgage is a huge financial decision, so it makes sense that you’ll want to have the highest credit score possible to secure the best rate. Smart money moves, like paying off a big debt, can have a big effect on how you use your credit, which could be good for your score. Naturally, you’ll want your future mortgage lender to receive that information and consider it when deciding your rate.
Unfortunately, changes to your credit score can sometimes take a few months to reflect. But there may be a way to circumvent the process thanks to rapid rescoring. In this article, we’ll look at how rapid rescore works and when you may want to use it.
A rapid rescore is a way to get your credit scores updated quickly when new information shows up on your credit report. You ask your credit bureau to recalculate your scores using the most up-to-date information from your credit report. Rapid rescoring doesn’t hurt your credit. In fact, it might help your scores go up.
Your credit scores will not change right away when you make changes to your credit history, like paying off debt or fixing a mistake. The rapid rescore accelerates this process. It lets your lender look at your most recent credit report and give you a new score based on that.
This can be beneficial when you’re applying for a time-sensitive loan, like a mortgage. Even small differences in your credit score can impact your loan terms and interest rates. With rapid rescoring, you may be able to get approved for better rates if your score increases.
When Does Rapid Rescoring Help?
Rapid rescoring helps when your credit score is just below the threshold for a particular mortgage rate or loan approval If the rescore pushes your score above the minimum, you could end up saving substantially on interest charges.
For example, let’s say you have a 740 credit score while applying for a home loan. The lender informs you that a 760 score would qualify you for a lower rate. You recently paid off a large credit card balance, but this isn’t yet reflected in your scores. With rapid rescoring, the lender can pull your latest credit data showing the paid-off debt. This might boost your score above 760 and snag you the lower rate.
How Does the Rapid Rescore Process Work?
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You can’t initiate a rapid rescore yourself. Your mortgage lender or creditor dealing with time-sensitive lending must request it for you.
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Equifax, Experian, or TransUnion are the credit bureaus that the lender asks for a new copy of your credit report.
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With your latest credit data, the lender recalculates your credit score using their scoring model.
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The rapid rescore process usually takes 3-5 business days. The exact timeline depends on your specific situation.
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If your updated scores meet the lender’s criteria, you could end up with better approved loan terms or interest rates.
Does a Rapid Rescore Always Help Your Credit?
No, a rapid rescore doesn’t always help. It cannot compensate for a long history of missed payments or defaults. The only way to improve poor credit is to build a positive history over time.
And sometimes, a rapid rescore may end up lowering your scores instead of helping. For instance, if your latest credit report shows a new late payment you didn’t know about earlier.
That said, if you’re on the edge of a credit score threshold for a mortgage or loan, a rapid rescore can potentially push you over and save you money. Discuss with your lender to see if it’s worth doing in your situation.
Can You Initiate a Rapid Rescore Yourself?
Unfortunately, consumers cannot directly request credit bureaus for a rapid rescore. Only lenders have the ability to initiate rapid rescoring for a borrower.
Lenders may also run your credit data through proprietary rescoring platforms before initiating a formal rapid rescore with the credit bureau. This gives them an estimate of how your scores might change with new information.
Does a Rapid Rescore Hurt Your Credit Utilization Ratio?
Your credit utilization ratio is the percentage of your total available credit that you are using. For example, if you have $10,000 in total credit limits and a $2,000 balance, your utilization is 20%.
A rapid rescore will not hurt your credit utilization ratio. It simply uses your latest credit data to recalculate your scores. The rescoring process itself does not impact your credit utilization.
However, if your latest credit report does show a higher utilization ratio (say your balances increased), then this can negatively impact your rapid rescore. The opposite is also true – lowering your utilization can help your rapid rescore.
The takeaway is that rapid rescoring itself does not directly change your utilization ratio. But your current utilization, as reflected in your latest credit data, can definitely affect the outcome of your rapid rescore.
Can You Do Multiple Rapid Rescores?
Technically, you can do multiple rapid rescores. But each additional rescore provides diminishing returns.
The first rescore accounts for the most significant new changes to your credit profile. Subsequent rescores will have less and less new information to factor in.
Each new rapid rescore also represents a new hard credit inquiry. Too many inquiries in a short span can negatively impact your credit. Doing just one or two rapid rescores is reasonable, but avoid going overboard with too many in quick succession.
Summary: Key Points on Rapid Rescoring
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A rapid rescore aims to quickly update your credit score by factoring in new credit report information.
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It can help if your score is just shy of a threshold for approval or better loan terms.
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Only lenders can initiate a rapid rescore, not consumers directly.
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The rapid rescore process itself does not hurt your credit. But negative items in your new data can lower your score.
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Rapid rescoring makes the most positive impact the first one or two times. The benefits diminish with each additional attempt.
Frequently Asked Questions
Rapid rescore may work for borrowers actively trying to obtain credit who know their latest credit score does not reflect positive financial changes. This can be used by borrowers who are trying to qualify for a mortgage and have recently improved their credit score.
A rapid rescore may help your credit when you request it after making beneficial financial decisions. However, if you’ve recently missed payments, closed lines of credit, or spent more money on a credit card, a rapid rescore could reflect a lower credit score.
A rapid rescore can expedite getting your lender the most up-to-date information on your credit report. Talk to your lender if you’ve made significant financial changes that are not reflected in your score and believe you’d be a good candidate for rapid rescore. Even a small increase in your credit score could mean big savings over the life of a mortgage or car loan.
1 “How Often Do Credit Scores and Reports Update?,” TransUnion
3 “What Is a Rapid Rescore?,” Experian
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Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC. All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
How Long Does a Rapid Rescore Take?
The time it takes to process a rapid rescore can vary depending on your lender, other creditors, and the credit bureau. But generally, once the mortgage lender begins the rapid rescoring process and submits the required documentation, the process is completed within 2-3 days.3
Credit Repair vs Rapid Rescore
FAQ
Does rapid rescore really work?
A rapid rescore may help your credit when you request it after making beneficial financial decisions. However, if you’ve recently missed payments, closed lines of credit, or spent more money on a credit card, a rapid rescore could reflect a lower credit score.
How many points can a rapid rescore get you?
While a rapid rescore might be helpful, it isn’t guaranteed to help everyone. Rapid rescoring typically won’t result in a drastic credit score increase—it’ll usually increase your score by only a few points.
How can I raise my credit score 100 points in 30 days?
Raising your credit score by 100 points in 30 days is ambitious but achievable. The key is to focus on strategies that have a significant and immediate impact on your credit report.
How long does a credit rapid rescore take?
Unlike traditional updates to your score, which can take anywhere from 30-60 days, the rapid rescore timeframe is typically 2-3 days, according to Experian™. Once you get your new score, it might take a few extra days for you and your mortgage lender to work out the new terms and percentages.