What Is a Rapid Rescore?

Getting a mortgage is a huge financial decision, so it makes sense that you’ll want to have the highest credit score possible to secure the best rate. Wise money moves like paying down a significant debt can drastically alter your credit utilization, which may positively impact your score. Naturally, you’ll want your future mortgage lender to receive that information and consider it when deciding your rate.

Unfortunately, changes to your credit score can sometimes take a few months to reflect. But there may be a way to circumvent the process thanks to rapid rescoring. In this article, we’ll look at how rapid rescore works and when you may want to use it. 

A rapid rescore is a process to have new payment information added to your credit reports quickly. This could potentially improve your credit score.

A rapid rescore may be done when applying for a mortgage, where having strong credit can make a big difference in the loan terms that you qualify for. You can’t request a rapid rescore on your own; you’ll need to do so through your lender. 

Without intervention, lenders typically report to credit bureaus every 30 to 45 days, and your credit score updates about once a month.¹ So, if you’ve made positive financial moves like paying down credit card debt, you’ll likely need to wait a few months for your score to increase. That is, of course, unless you request a rapid rescore.

The most important thing about a rapid rescore is that it’s not a quick fix to improve your credit. It will only update based on the most accurate and recent information. You’ll typically only want to request it once you know which factors impact your credit score the most and ensure the changes you’ve made can meaningfully move your score.

For example, if you have three credit cards with balances and pay one down, it might boost your score a bit. However, if the debt you paid is the lowest balance of the three and your credit utilization is still higher than lenders want to see, you may not get the dramatic increase you wish from a rapid rescore.

Keep in mind that negative changes will also show with a rapid rescore. If you recently submitted several credit applications or closed a credit card, be prepared for the potentially negative impacts of those changes, too.

If you believe a rapid rescore is right for you, you can follow these steps to request one:
 

1. Confirm Financial Transactions are Complete
   Before initiating the rapid rescore process, confirm you’ve completed all the financial transactions you need to make, including processing debt payments. You’ll want to check the lender’s site to verify that transactions have cleared and that your account reflects the proper balance.
   
   
2. Request the Rescore Through Your Lender
   Lenders that offer rapid rescoring will pay a fee to credit bureaus to review and update information quickly. The good news is that a rapid rescore shouldn’t cost you anything. The mortgage lender pays a fee for the rapid rescore, and they can’t pass that fee to you, the consumer.² You’ll face plenty of other closing costs on a house that will require spending money, so count this one as a small victory.
   
   
3. The Credit Bureau Provides an Updated Report
   Within a few days, the credit bureau will provide an updated credit report to your lender.
   
   
4. The Lender Provides New Rates and Terms Based on the Updated Score
   Assuming the lender sees an improved credit report and score from the rapid rescore, they may issue you new loan terms and interest rates accordingly. You’ll need to discuss with your lender to understand how much of a difference you’ll see in your rate as a result.

Rapid rescoring may be beneficial in the following situations:
  

• Request the Rescore Through Your Lender
  Whether you’re applying for a car loan or mortgage, your credit score is a big factor in your loan eligibility and the interest rates offered. If you have the ability to make quick changes to boost your score, like taking a lump sum from a savings account and using it to pay off debt, a rapid rescore could benefit you by getting that information into the hands of your lender faster. Keep in mind that you can’t request a rapid rescore with every type of financing, so it’s important to talk to your lender before applying if you believe your score has changed.
  
  
• You’re a Few Points Shy of Qualifying for a Loan (Or Accessing a Better Rate)
  A rapid rescore generally makes sense if you only need to improve your credit score by a few points to qualify for a better rate. For example, if your current score is 650 and your lender wants to see a 670 to qualify for a mortgage, that difference may potentially be made up by a rapid rescore. However, if your current score is around 500, you may need more time to make enough good financial moves to change your score by 170 points.
  
  
• You’re Applying for a Top-Tier Credit Card
  If you’ve had your eye on a premium rewards credit card, your credit score will be a factor when applying. Depending on the credit card issuer and how badly they want to offer you the card, you may be able to ask them to request a rapid rescore. However, since the lender needs to pay a fee for the rescore, they may not be willing to do so. In that case, you may simply need to wait a few months to see the changes reflected in your score and reapply at that time.