When applying for a large loan, such as a home loan, a small improvement in your credit score can potentially save you lots of money over the loan term. Working with creditors on your own can take a month or longer for this to happen. Also, lenders (and sales contracts) have deadlines, and the credit scores available to your lender today will be based on the information currently displayed in your credit files. If you cannot meet your financing deadline with the desired rate (or if rates rise while you wait), you will be forced to make some hard decisions. However, a rapid rescore allows you to quickly update your credit reports and increase your score, in some cases, within a few days. Let’s find out if rapid rescore really does work. This article contains answers to all of your questions about rapid rescore services.
What Is a Rapid Rescore?
A rapid rescore, or credit rapid rescore, is a service used by lenders to ensure that every new change to your account history is reflected in your credit reports on time.
Instead of waiting for the following payment cycle, your lender can update your credit report within days.
The rapid rescore service’s goal is to improve the information in your credit history and obtain a higher credit score. Lenders recommend it when your credit score is below what’s needed for a better rate or conditions.
Negative items, loan balances, and inaccuracies can hurt your chances of acquiring a low-cost loan.
When Would You Require A Quick Credit Rapid Rescore?
Because mortgage loans are time-sensitive, a rapid rescore can be a valuable tool in some cases. If you need to quickly adjust your credit score to qualify for better mortgage terms due to a change in one or more accounts, request a credit rapid rescore.
Rapidly improving your credit score before applying for a mortgage could result in qualifying for a lower interest rate and, as a result, significant interest savings over the term of your loan.
Our clients in the mid-600s to 720s who are five to ten points behind their desired score are the best candidates for a rapid rescore. Rapid rescores assist borrowers who can move down to a lower credit score “tier”
Rapid rescore services might improve your credit score and reflect your lower credit utilization if you’ve recently paid off revolving balances.
If you’ve did pay off revolving debt, a credit rescore can reflect your lower credit use.
Always prepare ahead before applying for a mortgage so you have time to repair your credit. However, there may be times when a quick rescore would have good advantages.
How Much Does Rapid Rescore Cost?
Rapid rescore costs vary based on how many credit reports and accounts you update. You have three options Experian, Equifax, and Transunion.
Seth estimates each bureau costs $40, and they update all three at once, so that’s $120 per line item. Therefore, it can cost nearly $480 to rescore four different credit cards.
Some mortgage lenders offer free rapid rescoring. The Fair Credit Reporting Act makes it illegal for lenders to charge customers to correct or dispute credit report information.
Does Rapid Rescore Really Work?
A mortgage lender pays Experian, TransUnion, or Equifax for a credit rapid rescore to update a loan applicant’s credit report quickly.
After that, you will make some payments to pay down or pay off an account as requested by your mortgage lender. Only credit scores calculated after changes to your credit report have been made will reflect the changes to your accounts.
Since mortgage loans are time-sensitive, a lender may find it advantageous to update an applicant’s payment information more rapidly.
Proof of recent payment adjustments, including paying off debts, is sent to the credit reporting bureau so the mortgage approval process can go faster.
Once the credit report has been updated, the lender can request a new credit score, which should result in a higher score. You cannot request a rapid rescore on your own; you must go through your lender.
The rapid rescore has now been proven to really work, so go ahead and explore!
Why Is My Rapid Rescore Taking So Long?
The rapid rescore service process usually takes three to five business days for it to work out. But, before you begin, make sure you’ve addressed the issues that are causing your credit score to suffer.
If you need to pay off a credit card balance, for example, make sure the payment goes through first. The same is true for credit report disputes and other areas where an improvement can affect your mortgage.
If you’re not in a hurry to buy a property, work on your credit before applying for a mortgage. While a quick rescore can assist, it pales in comparison to paying down credit cards, disputing inaccuracies, and getting everything in order.
Should I Consider Credit Rapid Rescore?
Your mortgage lender may recommend a speedy rescore when your credit score falls below the minimum for a higher rate or loan terms.
A small change in your mortgage interest rate can save you money and fees during the loan’s term.
If your credit score is near the bank’s minimal and you can pay down debts, ask for a quick rapid rescore to save on interest and charges.
It’s important to remember that paying off or reducing an account doesn’t always increase your credit score. You calculate your credit score by using many different factors, and each person’s credit situation is unique.
If your utilization rate is already low or your payment did not significantly change your balance-to-limit ratio, you may not see a change in your scores once the balance is updated.
More Considerations on Credit Rapid Rescore
While debt repayment is a positive thing, any major change in your credit history, such as repaying an installment loan, may temporarily lower your scores.
Take out any legitimately negative information. Rapid rescoring, like credit repair, will not hasten the removal of negative information from your credit report.
If you’ve missed a payment or defaulted on a loan, this will stay on your credit report for seven years. And, depending on the type of bankruptcy you choose, it can take up to ten years to get rid of.
Rapid rescoring can let you make speedy improvements to your credit history, but it won’t change accurate negative information.
Beginning the loan process with a good credit score is the simplest way to get a good mortgage interest rate. Rapid rescoring can help if you’re a few points from a mortgage or lower interest rate.
Taking the time to improve your credit before applying may save you even more money.
Conclusion
A rapid rescore won’t necessarily raise your credit score, but it can be handy if you need your credit report and score updated quickly, rather than waiting weeks or months for the credit agencies to do it.
A rapid rescore can help you achieve the best mortgage rate by reflecting favorable changes in your credit report and score quickly. Only a few mortgage lenders provide this service, so check with them to see if they do.
Again, it’s a good idea to check your credit reports several months ahead of time so you have plenty of time to correct any errors and pay down your balances. This reduces the likelihood of having to rely on a quick rescore when applying for a mortgage.
Rapid Rescore FAQs
What exactly is a 7 Day credit rapid rescores?
This is a process in which a lender submits to the three major credit bureaus proof of recent positive changes to your credit accounts. Then, they use a rapid rescore to incorporate this new information into your credit score. Lenders typically receive updated information in 3-7 days.
What kind of documentation is required for a quick credit rapid rescore?
All documents from the creditor reporting the account, Collection agency receipts with the account number, Court issued documents, letter of discharge, and all schedules for bankruptcies must be typed on letterhead for the bureau to accept CIC requests.
How frequently does your credit report gets updated?
When creditors report new information, your credit report is updated. Creditors typically update their information once a month. If you have multiple accounts on your credit report (which the majority of people do), your report will be updated once per month for each creditor.
Does Rapid Rescore Really Work?
Yes, Rapid Rescore does Really Work
