What Is a Rapid Rescore?

How Does a Rapid Rescore Work?

A rapid rescore is an expedited credit report update service that mortgage lenders can purchase from credit bureaus (Experian, TransUnion or Equifax) to quickly reflect recent changes to a borrower's credit profile.

Under normal circumstances, creditors can take 30 to 60 days to process payments and report updates to credit bureaus. This delay means that even after you pay down a credit card balance or pay off a loan, your credit score won't immediately reflect these improvements.

When time is of the essence, your mortgage lender can pay a fee to bypass this waiting period. The lender submits documentation proving recent account changes—such as paid-off balances or reduced credit utilization—directly to the credit bureaus. The bureaus then update your credit report within days rather than weeks, allowing the lender to calculate a new credit score that reflects your improved financial situation.

Rapid rescores are particularly valuable when a borrower is just short of qualifying for a mortgage or a better interest rate. A few extra credit score points gained from recent payments could make the difference in loan approval or save thousands of dollars over the life of the loan.

Tip: Rapid rescores can only be requested by your mortgage lender. You can't initiate this process on your own. The lender isn't allowed to directly pass any fees it incurs from the process to you; however, you may be indirectly paying for these fees with increased closing costs or interest rates.

Learn more:How Often Is a Credit Report Updated?

How Long Does a Rapid Rescore Take?

The timeline for a rapid rescore can depend on your mortgage lender and other creditors.

Once you have made payments to your credit accounts, those creditors will first need to update the accounts to reflect the new balance or payment status. Next, your mortgage lender will need to obtain proof of the changes from you so they can provide the updated information to the credit reporting company.

Once the mortgage lender begins the rapid rescore process with the credit reporting agency and submits the necessary documentation, it is often completed within two to five days.

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Is a Rapid Rescore Something I Should Consider?

Your mortgage lender may recommend a rapid rescore when you're close to qualifying for better loan terms. Even a small improvement in your interest rate can save you thousands of dollars over the life of your mortgage.

Here are some situations where a rapid rescore may be beneficial:

• Your credit score falls only a few points short of what score is needed to buy a house or a better interest rate.
• You have a high credit utilization rate and can afford to pay down substantial balances, which could quickly boost your score.
• You can immediately pay down or pay off debts without straining your finances.
• You're in an active home purchase with tight deadlines and can't wait 30 to 45 days for normal credit reporting cycles.

It's important to note that a rapid rescore doesn't guarantee score improvement. Credit scores depend on multiple factors, and results vary by individual.

For example, if your credit utilization is already low, paying down balances further may not impact your score. Also, paying off an installment loan entirely can sometimes cause a temporary score dip as your credit mix changes.

The best approach is to consult with your lender about whether your specific situation makes a rapid rescore worthwhile.

Learn more:What Credit Scores Do Mortgage Lenders Use?

How to Get a Rapid Rescore

If you believe you could benefit from a rapid rescore, here's how you can work with your mortgage lender to get started on the process:

1. Apply for a mortgage loan. Your lender will pull your credit report and review your scores to determine what loan terms you qualify for.
2. Discuss options with your lender. If your score falls just short of better rates or approval, your lender will analyze your credit reports and identify specific actions that could improve your score, such as paying down high-balance credit cards or resolving other outstanding debts.
3. Make the necessary payments. Pay down or pay off the accounts your lender recommends. It's best to prioritize actions that will have the biggest impact, such as eliminating high credit card balances.
4. Gather documentation. Obtain proof of your payments, such as bank statements, confirmation receipts or updated account statements showing the new lower balances. Then, provide your lender with clear evidence of the payments you've made.
5. Wait for the update. Your lender will submit your documentation to one or more credit bureaus. The credit bureau typically updates your credit report within two to five days, though timelines can vary.

Once the report is updated, your lender will pull a fresh credit score to see if you now qualify for better loan terms.

The Bottom Line

It's important to remember that your credit reports are continuously changing as lenders report updates to your accounts. In the time it takes for the rapid rescore process, there may be other changes or updates to your credit history that can also cause credit scores to fluctuate.

You can see what your lenders are currently reporting by requesting a free credit report directly from Experian. You'll even see tips for improving your credit score that you can use to prepare yourself for your next loan application.