What is a Rapid Rescore, and How Does it Work?

When you’re applying for a mortgage, you want your credit score to be as strong as it can be. So, if you spot a mistake on your credit report or you’ve recently paid off a large loan, you may be wondering how to update the information sooner than later to improve your credit score faster.

Rapid rescore is a service that can update your credit report quickly, potentially boosting your credit score and helping you qualify for better loan terms. While a rapid rescore won't improve your credit score on its own, it shortens the amount of time it takes for changes to show up on your credit report — from around a month to just a few days.¹

Read on to learn more about what a rapid rescore is, how it works, when it may be useful and alternative options to help keep your credit score in good shape.

What is a rapid rescore?

A rapid rescore is a service that some lenders offer to quickly update your credit report information with the three major credit bureaus — Equifax, Experian and TransUnion. A rapid rescore can be used to correct errors or reflect recent changes, such as paying off student debt or your credit card balance. Most commonly, you’d use the rapid rescore service if you want to quickly update your credit report before you apply for a mortgage.

A lender, usually a mortgage lender, needs to offer and start the rapid rescore process.

How does a rapid rescore work?

A rapid rescore works by speeding up the time it takes for changes to your credit report to be reflected in your credit score. Lenders typically report your activity to the credit bureaus once per month, although they may not do so on the same day.² In turn, the credit bureaus may update your credit score at different times throughout the month.³ As a result, your credit report could include old information that might be lowering your credit score.

If the credit bureaus approve the change, your credit report and credit score are usually updated within 3-5 business days,⁴ although times may vary.

When might a rapid rescore be useful?

Generally, a rapid rescore is most useful if an improvement in your credit score could lead to better loan terms, such as a lower interest rate. In particular, a rapid rescore may be helpful before you apply for a mortgage.⁵

It’s important to note that a rapid rescore won’t solve any long-term money habits that might be contributing to a lower credit score. Additionally, if you’ve recently paid a bill late or stopped making payments on a loan, that information will also show up on a rapid rescore. A rapid rescore doesn’t hide or erase any potentially negative credit habits, like spending more than your credit limit, carrying credit card debt or not paying your bills on time.

If any of the below situations apply to you, a rapid rescore may quickly boost your credit score.

• You’ve recently paid off debt: Paying off debt could have an impact on your credit score. If you’ve recently paid off a loan to boost your credit score, you may want to see the impact of your loan payoff as soon as possible.
• You’re close to entering a more favorable credit score range: Positive changes to your credit report could put you in the credit score range you need to qualify for a loan or get better terms.
• There’s an error on your credit report: Correcting errors on your credit report is important and could have significant short- and long-term impacts on your credit score. Common mistakes include the wrong home address, a misspelled name, incorrect Social Security number, or dual bank accounts.
• There’s out-of-date information in your credit report: Removing outdated information is key to making sure the credit bureaus have an up-to-date credit report. If you’ve recently closed a credit card, for example, double-check it’s marked as such.

Alternatives to a rapid rescore

A rapid rescore will likely be most helpful if you’re already taking steps to improve your credit report and actively applying for loans.⁶ There are other ways to improve your credit score, including:

• Paying your bills on time: Your payment history plays a large role in determining your credit score. Prioritize making loan and credit card payments on time, every time. If you’re having trouble keeping up with monthly payments, look for ways to reallocate funds in your budget, so you can afford to pay by the deadline.
• Reducing credit utilization: Your credit utilization ratio is another important factor in your credit score. A credit utilization ratio is how much of your revolving credit, like a credit card, you are using compared to your total available credit amount. Lenders may prefer a credit utilization ratio under 30%.⁷ For instance, if you have a $3,000 credit limit, you might aim to charge less than $900 to your card and pay off the balance in full each month.
• Disputing errors: You can dispute errors on your credit report yourself by contacting the three major credit bureaus through their online portals, over the phone or by mail. You should also report the error to the lender or creditor who reported the information in the first place. You should provide documentation with the correct information. Credit bureaus typically have 30 days to look into a dispute and respond with their decision.⁸ If they end up making a correction, it could have a positive impact on your credit score.
• Paying down debt: Reducing your total amount of debt can improve your credit score. If you’re working to pay off multiple debts, there are several strategies you might use, including the debt snowball and debt avalanche methods. With the debt snowball method, you focus on your smallest debt first, while with debt avalanche, you prioritize the debt with the highest interest rate.

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See your credit-building efforts pay off quickly

A rapid rescore can be a helpful tool to quickly update your credit score before you apply for a mortgage. If you’ve recently taken steps to boost your credit score, a rapid rescore may help you see the results sooner. If you’ve noticed errors in your credit report, a rapid rescore could also be a fast way to resolve them. If your lender offers the rapid rescore service, they can help you with the process if it’s right for you.

Sources

1, 4, 5, 6: https://www.equifax.com/personal/education/credit/score/articles/-/learn/what-is-a-rapid-rescore/
2: https://www.experian.com/blogs/ask-experian/credit-information-is-updated-continuously/
3: https://www.equifax.com/personal/education/credit/score/articles/-/learn/how-often-does-your-credit-score-update/
7: https://www.equifax.com/personal/education/debt-management/articles/-/learn/credit-utilization-ratio/
8: https://www.myfico.com/credit-education/credit-reports/fixing-errors