Highlights:
- Changes in your credit history may take time to be reflected in your credit scores. A rapid rescore aims to accelerate the updating process, usually in the hopes that some newly considered information will increase your credit scores.
- You cannot initiate a rapid rescore on your own. Instead, you'll need to rely on a creditor that provides these services, such as a credit card company or another type of lender.
- Before you ask your lender to initiate a rapid rescore, you'll want to take your entire financial situation into account and make sure there are no negative surprises that await.
When changes happen in your credit history, such as disputing an error on your credit reports or paying off a large debt, it usually takes time to see those changes reflected in your credit scores. A rapid rescore aims to accelerate the updating process, usually in the hopes that some newly considered information will increase your credit scores.
How does a rapid rescore work?
You can't initiate a rapid rescore on your own. Instead, you'll need to work with a creditor that provides these services, such as a credit card company or another type of lender. Rescoring is commonly offered by mortgage lenders because securing a mortgage is usually more time-sensitive than other loans.
Most of the time, it may not matter when your credit scores update. However, if you're applying for a mortgage or another new credit account, differences in your credit score could have a big impact on whether you're approved for the loan and at what terms.
That's where a rapid rescore comes in.
For example, let's say you're applying for a mortgage and only have a short amount of time to complete the process. Your lender informs you that you could qualify for a lower interest rate if you had a slightly higher credit score. You realize that you have enough money in one of your savings accounts to pay off a significant amount of credit card debt. So, you make that payment, understanding that paying off large debts may positively impact your credit scores.
Your lender can then initiate a rapid rescore by requesting a new copy of your credit report from one or more of three nationwide consumer reporting agencies (CRAs) —Equifax, TransUnion and Experian.
From here, your lender can reevaluate your credit scores based on the most recent information available, including the large debt payment you just made to help increase your credit scores.
Who do you work with to obtain a rapid rescore?
You'll need the help of a lender or mortgage broker to initiate a rapid rescore.
Some lenders will also run special reports on a borrower's credit reports and scores that help them diagnose which actions may result in a score increase. For example, they may highlight which debts you should target for repayment in order to increase your credit scores and secure more favorable loan terms.
Keep in mind, however, that these reports will be estimates only. It is not possible to predict credit score changes with 100% accuracy because different lenders use different scoring formulas to calculate your credit scores.
What is the timeline for a rapid rescore?
Rapid rescoring typically takes three to five business days to complete, although the exact timeframe will depend on your unique situation.
How to know if a rapid rescore is right for you?
A rapid rescore can be beneficial if a slight boost in your credit scores would help you get better terms on a loan, secure a lower interest rate or simply move into the minimum credit score range for approval. If you're able to pay off debt or correct an error on your credit reports that might lead to an increase in your credit scores, rapid rescoring can save you time and potentially money in the long run.
However, it's important to understand that rapid rescoring is generally only helpful if someone is actively evaluating your credit scores, such as when you apply for a loan.
A rapid rescore also can't undo a credit history full of late payments, delinquent accounts and other damaging behavior. The only way to see your credit scores improve from previous mistakes is to build up a positive credit history. This can take months or even years of good credit habits to achieve and maintain.
Before you ask your lender to initiate a rapid rescore, take your entire financial situation into account and make sure there are no negative surprises that await. For example, a rapid rescore might reveal a new delinquent payment or another issue that could actually lower your credit scores.
A rapid rescore may be a great option if you're in between credit score ranges and higher scores would help you get better terms on a loan, such as a mortgage or auto loan. But keep in mind that there's no guarantee that a rapid rescore will boost your credit scores, so weigh your options before jumping into the rescoring process.
