Member FDIC NMLS #772685
Vice President - Mortgage Division
How Mortgage Borrowers May Benefit from Rapid Rescoring
Credit scores are one of the biggest factors contributing to the mortgage interest rate you receive and loan types for which you can qualify. When you apply for a loan, lenders will check your credit scores by pulling credit reports from the three central credit bureaus: TransUnion, Equifax, and Experian. The middle score derived from these three credit bureaus is the score that your interest rate is typically based on. When you have a low credit score, you will pay more rates and higher fees than if you had a high credit score. If you have a low credit score, you can use a tactic known as the rapid rescore to boost your credit back up.
What is Rapid Rescoring?
Rapid rescoring is a tactic that lets you update or correct your credit file information within 72 hours. You can update one or several accounts in your credit file that could lead to your credit score being boosted.
What Steps Do I Need To Take For a Rapid Rescore?
In order to submit a rapid rescore, you need to first identify which accounts you want to update or correct in your credit file. Once you have identified these accounts, you’re going to want to submit the documentation (such as the proof of payment) to the creditor who has submitted the erroneous report. After the documentation has been submitted, the credit bureau will verify this information and will update the account accordingly. Then, your lender will request the updated credit score and will update your credit file.
How Do I Submit a Rapid Rescore?
The easiest way to do a rapid rescore is to have your lender perform it for you, because it’s usually free. Not every lender offers the rapid rescore service, so it’s important to shop around and find a lender who will do this service for you if you're interested. It’s also important that your lender has a credit score simulator. That way, you will know exactly how much your credit score will improve.