What is Rapid Rescoring: A How To Guide To Using 'Rapid Rescore" To Improve Your Credit
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What is Rapid Rescoring?
Rapid rescoring is a process that allows lenders to have your credit report updated more quickly than usual. This can be helpful if you have recently made a significant change to your credit history, such as paying off a large debt or disputing an error. By requesting a rapid rescore, you can update your credit score in 2-3 days instead of 30–60 days.
How Does Rapid Rescoring Work?
When you request a rapid rescore, your lender will contact the credit reporting agencies (CRAs) and request that they update your credit report with the new information. The CRAs will then review the data, and if they approve it, they will update your credit report and issue you a new credit score.
Who Can Benefit from Rapid Rescoring?
Rapid rescoring can be a valuable tool for people applying for a loan or other type of credit. If your credit score is just a few points shy of what you need to qualify for a loan, a rapid rescore could help you get approved. Rapid rescoring can also be helpful if you are trying to improve your credit score quickly.
How to Request a Rapid Rescore
To request a rapid rescore, you will need to contact your lender. They can tell you if they offer rapid rescoring and how to ask for it. In general, you must provide your lender with documentation that proves the changes you have made to your credit history. This documentation could include a copy of your recent credit report, proof of debt payment, or a creditor's letter disputing an error.
The Cost of Rapid Rescoring
The cost of rapid rescoring varies depending on the lender. Requesting a rapid rescore generally costs between $25 and $50. However, some lenders, especially mortgage lenders, may offer rapid rescoring for free.
The Limitations of Rapid Rescoring
Rapid rescoring is not a magic bullet. It cannot erase negative information from your credit report or improve your credit score significantly. However, it can be a helpful tool for people who are trying to improve their credit scores in a short period of time. It’s especially helpful during a mortgage process.
Is Rapid Rescoring Right for You?
If you are considering requesting a rapid rescore, carefully weigh the pros and cons. Rapid rescoring can be a helpful tool, but it does not guarantee that your credit score will improve. You should also ensure you are prepared to pay the cost of rapid rescoring. There are no guarantees.
How long does rapid rescoring take, & can I do it myself?
Rapid rescoring can take anywhere from 2-7 days once your lender or creditor requests it. You cannot request it yourself.
What type of proof is needed in a rapid rescore request?
Evidence of current payment information, such as a letter from your creditor confirming that a debt has been settled, proof that you have paid off your credit card bills, or that you have asked a creditor for a goodwill adjustment.
What kind of accounts can do a rapid rescore?
Any account where the creditor or lender agrees to adjust the record on their end and submit the update to the credit bureaus.
Is rapid rescoring the same as credit repair?
No. A rapid rescore is a process used to quickly update your credit report with correctable errors or updated payment information, while a credit report dispute is a process used to correct errors on your credit report.
Here are some additional things to keep in mind about rapid rescoring:
Rapid rescoring is not available for everyone. Some lenders do not offer rapid rescoring; others may only provide it to specific borrowers.
Rapid rescoring only updates your credit report with new information. It does not remove any negative information from your credit report.
Rapid rescoring is a temporary solution. The changes to your credit report will only be reflected in your credit score for a short period of time. If you do not continue to make positive changes to your credit history, your score will eventually go back down.
If you are considering requesting a rapid rescore, be sure to research and understand the pros and cons before making a decision.
Other ways to improve your credit score
Pay off past-due debts or unpaid loans: Before approving your loan application, your mortgage lender may request that you pay off any past-due debts or unpaid loans when you apply for a home loan. The updating process can be sped up by rapid rescoring, usually in the hopes that some recently evaluated material will raise your credit scores.
Fix inaccuracies on your credit reports: It may take creditors months to update your credit file with the main credit bureaus after you dispute problems on your credit record. The process of updating credit report data and issuing new credit scores is sped up by rapid rescoring. But it's crucial to realize that speedy rescoring is typically only beneficial if someone is actively looking at your credit scores, like a mortgage lender or broker.
Eliminate credit card debt: Lowering your credit utilization ratio may significantly affect your credit score. Getting rid of your credit card debt or obtaining larger credit limits are two ways to achieve this. Quick rescoring can raise your credit score by a few points, but if you want to improve and repair your credit, you'll need to put in some effort.
Ask for a goodwill adjustment: If you've made a late payment despite having a solid credit history, you can ask for a goodwill adjustment. In this case, the creditor consents to deleting the late payment from your credit report. Your credit report can be swiftly updated with rapid rescoring to reflect the goodwill adjustment.
Use a mortgage lender to rescore: Mortgage lenders offer speedy rescoring as a service to homeowners whose credit ratings may need a minor boost. Credit repair agencies should not be used for rapid rescoring; instead, use a mortgage lender or broker.
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