Imagine you’re on the verge of securing your dream home. You’ve found the perfect place, but there’s just one problem—your credit score is a few points shy of what’s needed to qualify for the loan terms your lender has offered. It’s frustrating, right?
This is where a rapid rescore might come into play.
If your lender has suggested it, but you’re scratching your head wondering what a rapid rescore even is, this article is here to help. We’ll break down what a rapid rescore is, how it works, and why it might be the key to getting that loan approved.
What is a Rapid Rescore?
A rapid rescore is a process that updates your credit report quickly to reflect recent changes, like paying off a debt or correcting an error, which could boost your credit score. Normally, when something changes on your credit report, it can take 30 to 45 days for those updates to be reflected in your score. This delay can be a problem if you’re in the middle of a time-sensitive loan application, like a mortgage.
With a rapid rescore, the process is sped up, typically taking just three to five days. This allows your lender to see the most current version of your credit score sooner, which can make a big difference. Even a small increase in your score could help you qualify for a loan or get a better interest rate.
Note: Keep in mind that the exact timing depends on how quickly you can provide the necessary documents and how efficiently your lender handles the request.
Why Should You Get a Rapid Rescore?
If you’re considering a rapid rescore, here are some of the key benefits you can expect:
Improved loan eligibility
With a rapid rescore, recent positive changes, like paying down debt or correcting errors, are quickly added to your credit report. This can result in a higher credit score, potentially making you eligible for loans that you might not have qualified for before.
Better interest rates
Even a slight increase in your credit score can lead to better interest rates on loans and credit products. A rapid rescore can help you achieve that boost quickly, which can save you a significant amount of money over the life of a loan. Lower interest rates mean lower monthly payments and less paid in interest overall.
Corrects errors quickly
If your credit report contains errors, a rapid rescore allows you to get those mistakes corrected in a matter of days, not weeks. This ensures that lenders are looking at the most accurate and fair representation of your credit history, which can improve your chances of getting approved for credit and securing favorable terms.
These benefits make a rapid rescore a valuable tool when timing and accuracy are essential in your financial decisions.
When Should You Get a Rapid Rescore?
A rapid rescore can be beneficial to you in several scenarios, particularly when you’re close to meeting the credit score requirements for a loan but fall just a few points short. However, is it the right move for you? Here are some situations where a rapid rescore might be worth considering:
- Close to loan approval: If your credit score is just a few points shy of the threshold needed for loan approval or better terms, a rapid rescore can help you reach that score quickly.
- Recent positive credit changes: If you’ve recently paid off significant debt, corrected errors on your credit report, or made other positive financial moves that aren’t yet reflected in your credit score, a rapid rescore can expedite the update.
- Time-sensitive loans: For loans that need quick processing, such as mortgages with a closing date on the horizon, a rapid rescore can be crucial in securing the loan with the best possible terms.
If you meet these situations, it might be best to consider requesting a rapid rescore.
How Does a Rapid Rescore Work?
Requesting a rapid rescore is a straightforward process, but it’s important to note that you can’t do it on your own—you’ll need to go through your lender. Here’s a step-by-step guide on how to request a rapid rescore:
1. Consult your lender.
Start by discussing the option of a rapid rescore with your lender. They’ll review your credit situation and the type of loan you’re applying for to determine if a rapid rescore is the right move. If they think it’s a good idea, they’ll guide you through the next steps.
2. Provide necessary documentation.
Gather any documents that prove recent positive changes to your credit. This could include receipts showing you’ve paid off debts, records of dispute resolutions, or evidence of other financial improvements. Submit these documents to your lender so they can use them to update your credit report.
3. The lender initiates the process.
Your lender will take the documents you provided and submit them to the major credit bureaus—Experian, Equifax, and TransUnion—along with a request for a rapid rescore. This step is crucial, as only your lender can initiate a rapid rescore with the credit bureaus.
4. Wait for an update.
Once the request is submitted, the credit bureaus will process it and update your credit report. This typically takes 2 to 5 business days, much faster than the normal update process. During this time, your lender will keep you informed of any progress.
5. Review the new score.
After the credit bureaus update your report, your lender will obtain your new credit score. You’ll then review this updated score with your lender to see how it affects your loan application. If all goes well, the improved score could help you get better loan terms or even secure approval.
Limitations of Rapid Rescoring
While a rapid rescore can be incredibly helpful, it’s important to be aware of its limitations:
- It doesn’t guarantee a score increase: A rapid rescore can expedite updates to your credit report, but it doesn’t guarantee a significant increase in your credit score. In some cases, the changes might only boost your score by a few points—or not at all.
- It cannot remove negative history: Rapid rescoring cannot remove legitimate negative information from your credit report. It’s designed to update your report with accurate, current information, but it won’t erase past mistakes like late payments or collection accounts.
- You can end up discovering unintended consequences: In some instances, a rapid rescore might reveal new information that could actually cause a drop in your credit score. For example, if you’ve recently missed a payment, updating your credit report could result in a score drop instead of a boost.
Related article: Credit Report Examples: How to Interpret & Read Them
Alternatives to Rapid Rescoring
If a rapid rescore doesn’t seem like the right fit for you, or if you’re looking for other ways to improve your credit score, consider these alternatives:
Monitor your credit report and dispute errors.
Regularly monitoring your credit report and promptly disputing any errors can help you maintain a higher credit score. This proactive approach ensures your credit report reflects accurate information. However, this process can take longer than a rapid rescore.
Pay down your debt.
Reducing your credit card balances can lower your credit utilization ratio, which may positively impact your score over time. While this approach doesn’t offer the immediate results of a rapid rescore, it’s a solid strategy for improving your credit health in the long run.
Consider getting a secured credit card.
If your credit score needs a boost and you’re not in a rush, using a secured credit card responsibly can gradually improve your credit score. This involves putting down a cash deposit as collateral, which becomes your credit limit. Here are some secured credit cards you might want to consider:
- Capital One Platinum Secured Credit Card
- Capital One Quicksilver Secured Cash Rewards Credit Card
- Discover it® Secured Credit Card
Improve your payment history.
Paying your bills on time is one of the most effective ways to boost your credit score. While it takes discipline and patience, this habit is crucial for maintaining strong credit in the long run. To make this easier, consider using Cushion, an app that automatically reports your regular bill payments to credit bureaus. By doing so, Cushion helps build your credit history and improve your score over time.
Summary
A rapid rescore can be a powerful tool when you’re on the cusp of qualifying for better loan terms or just need that final boost to secure approval. By updating your credit report quickly to reflect recent positive changes, you can achieve the credit score you need. However, it’s not without its limitations and isn’t the right solution for everyone. Understanding when and how to do it, and exploring alternatives are important to make the best decision for your situation.
