When you apply for a big loan like a home loan, a small increase in your credit score and, as a result, your interest rate can save you hundreds of dollars over the life of the loan. If you deal with creditors on your own, the good things you do today might not show up on your credit reports for a month or more. But both lenders and sales contracts have deadlines, and the credit scores your lender can see today are based on the information in your credit files right now. If you can't get the rate you want by your deadline, or if rates go up while you wait, you'll have to make some tough decisions. With a rapid rescore, you can quickly get your credit reports updated and your credit score raised, sometimes in just a few days. 3
What is Rapid Rescoring?
A "rapid rescore" is a service that lenders use to get recent changes to your account history on your credit report more quickly. You don't have to wait until your next billing cycle for information in your credit report to be updated. With the help of your lender, you can have that information updated within days. The goal of the service is to improve the information in your credit history so that you can get a higher credit score. Lenders usually recommend the service when your credit score is just a few points short of what you need to get a lower interest rate or better loan terms. By improving your chances of getting a low-cost loan by getting rid of bad things, paying down loan balances, and fixing mistakes. You can't change your scores quickly on your own. To use the service, you'll need a lender (usually the one you're working with to buy or refinance a home) to request a rapid credit report on your behalf. Your lender has the information needed to figure out if a quick update to your credit score will help, as well as relationships with any third-party credit vendors who handle the logistics of updating your credit.Some Examples of Rapid Rescores
Use these situations to figure out when a quick rescore is a good idea and how it can help your credit score and your chances of getting a loan. After taking steps to improve your score, you can get a quick rescore. Let's say that your mortgage broker uses a computer simulator to see if you have a chance to improve your credit. If you raise your score by 20 points, you'll be in a group of borrowers who pay a slightly lower interest rate. The simulator says you might be able to do this if you pay down your card balances so that you use less than 30% of your credit limit. Even if you pay off your credit cards every month, your card issuer may take a picture of your balance when it's high, which makes the credit-scoring model think you're using all of your cards to their full limits. If you have the money, you should pay down your debts. Then, use rapid reporting to send updated information to the credit bureau and have it added to your credit report within a few days. If you ask that bureau for a new credit score, you are more likely to get a higher score and be approved at a lower rate. Ask for a rescore to get rid of bad points that were given in error. If you're trying to get a mortgage, you might find a big mistake on your credit report. A lender said you didn't pay back a loan, but you don't remember getting one. You could easily report the mistake yourself and get it fixed, but you don't want to (it could take over a month before your credit score goes up). You can dispute the item with your mortgage lender, and your credit report will be changed quickly. Once the mistake is fixed, your credit score will be higher and more accurate. VantageScore and FICO both think that a credit utilization ratio of 30% or less is the best.What can't be done with Rapid Rescoring
Even though this service lets you quickly update your credit report, it's important to know its limits, which are:Accuracy is very important.
The process of updating your credit reports is sped up by rapid rescoring. But the service only works if the information you give is correct. Under the Fair Credit Reporting Act, you only have the right to dispute information that is incomplete or wrong. So, if there's a mistake on your credit report that says you didn't pay back a loan, rapid rescore can help get that information taken off as soon as possible. If you really didn't pay back the loan, the negative item won't be temporarily taken off your credit report. This isn't a "trick" to improve your credit just long enough for your loan to be approved.It's not fixing your credit.
Rapid rescoring is not the same as fixing your credit; it's just a faster way to get information to the credit bureaus. You can't dispute everything that lowers your score (unless everything is wrong), and the service won't help you work out deals with your creditors. To improve your credit in a legal way, you'll need to take steps and then get a rapid rescore so that your credit reports and credit score can show the changes quickly.Look for small gains.
Don't put too much faith in a quick credit report if you need a big jump in your credit score. Your credit score might only need a small boost to help you get approved with better terms. But if you get rid of a big mistake like bankruptcy, you might see even better results.You decide how fast it is.
For rapid rescoring to work, you may need to take part in the process. For example, if you're behind on payments, you can catch up and use rapid rescoring, but you'll need to find the money and give it to your lender before you can order an updated credit score. You may also need to find proof that accounts were paid off, which takes time and work. You can't expect your lender to do everything for you.Your results may differ.
Rapid rescoring is often a good idea, but it can backfire or not give you or your lender the results you want. If you do things that hurt your credit score before you ask for a rescore, your score could go down. Talk to your lender about the details before you do anything else (and ensure your lender has the experience and knowledge to give you the right advice). Avoid scams by staying away from third-party companies that promise to raise your score quickly by disputing negative items that are correct. This isn't how rapid rescoring works, and lenders and companies that are legit will never promise this.Rapid Rescoring: How to Use It
Rapid rescoring is a service that your lender will ask for on your behalf. If you want a rapid rescore, you'll need to ask your lender for one. You'll need to be able to change your credit reports in a way that is legal. If you can, do what you need to do to get a better score. Then, your lender will send proof of the change to the credit-reporting agency. The agency will quickly update your credit report. When you ask for your score the next time, it should be higher. If your lender doesn't know that you can improve your credit score in a meaningful way, you may need to tell them. In the same way, if your lender doesn't offer rapid rescoring, you'll have to wait for things to be updated the old-fashioned way or find a different lender.How much does a "Rapid Rescore" cost?
Credit-reporting agencies charge lenders a fee when lenders ask for updates to your credit report, but the borrower usually doesn't have to pay a fee for the service. Under the FCRA, lenders can't charge borrowers a fee for pointing out mistakes on their credit reports. But nothing is free. You'll have to pay for your lender's skills through the loan's interest rate and closing costs.How long does it take?
People have different ideas about what it means to be "quick." Most companies that do rescore promise turnaround times of one to five days. More information can be obtained from a reputable lender. In some situations, it will take even longer for everything to be sent in and updated. Getting information, sending payments, and mailing paperwork take time.Alternatives
If you can't use rapid rescoring or it doesn't work for you, there are other ways to improve your credit: Talk to multiple lenders. Different lenders have different ways of deciding if you're eligible and different services you can use. Shopping around is always a good idea. Even if others won't or aren't willing to work with you, one lender might be willing to restore your credit quickly or give you an affordable loan with the credit you have now. Pay off loans: Getting approved for a loan often comes down to making sure you can afford the payments. Pay off loans if you have cash on hand to lower your monthly bills (and improve your debt-to-income ratio). That might be enough for some lenders to give you a good loan.Think ahead.
Rapid rescoring can help you make quick changes, but you should have everything in order long before you apply for a loan. So, when you are in the middle of a complicated and stressful loan transaction, you will have one less thing to worry about. Check your credit report often, fix any mistakes you find, and keep your credit card balances low so that the next time you apply for a loan, there's nothing to fix.Questions People Usually Ask (FAQs)
How do you change information about yourself on your credit report?
The easiest way to change the personal information on your credit report is to let your creditors know. Each month, your creditors send you a report about your account. This includes your current balance and any changes to your personal information, such as your address. You can also tell each credit bureau separately that your information has changed.How often do changes get made to your credit report?
Your credit report is updated every time a creditor gives new information about you. Creditors usually send out new information once a month. Most people have more than one account on their credit report, which means that each creditor will update your report once a month. Credit inquires, which are requests for your credit history, and other things like bankruptcy filings, are also added to your credit report when they happen and will cause your report to be updated.