What is a 7 Day Rapid rescore?
November 19, 2021 - 6 min read
Rapid Rescore By Lenders Increases Credit Scores In Days versus weeks and/or months if you wait until it updates until the next cycle. When its time for you to buy a home and you need to get a home loan you will want a good, if not great credit score. The better the credit score, the better the rate. AND if your credit score was a few points higher which put you in a better tier, it could save you thousands of dollars over your 30-year mortgage.
If you were to do the work on your own to get your credit score higher it could take months to get a small increase in your credit score to show on a mortgage credit report. However, a Mortgage Broker could do it in as little as 7 days or less. In this article, we will discuss and cover what rapid rescoring is and how rapid rescore works during the mortgage process.
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What Is Rapid Rescoring
Rapid rescoring is service mortgage brokers use to expedite recent updates on consumer credit reports in a matter of days versus weeks. Borrowers in an active mortgage process often need the most recent activities on their credit report updated. By getting recent activities updated on consumer credit reports, this often can increase credit scores. Higher credit scores mean lower mortgage rates.
A rapid rescore is when a lender requests updated information from the credit bureaus. This process can take anywhere from a few days to a week. The updated information is then factored into your credit score.
For example, you will have lower credit scores if you have maxed out credit cards. By paying down your credit card balance, it can boost your credit scores. However, if you were to pay down your credit card balance in the beginning of the month, the credit card company may not report the update your payment until later in the month. Then it may take another couple of weeks for the credit bureaus to update your payment. This can mean over 30 days for everything on your credit profile to be updated.
Rapid rescoring expedites recent updates to consumer credit accounts in an accelerated timeframe versus the 30 to 60 days it normally takes. Now due to the service of rapid rescoring, the information on your credit report can be updated in as fast as three to five days. Borrowers are in a time crunch. Therefore, the services of rapid rescoring is very valuable. Lenders can get a rapid rescore done in less than 7 days. It can be done as quickly as in three to five days.
Why would I need a rapid rescore?
There are a few reasons you might need a rapid rescore. Perhaps you’ve recently paid off some debt or corrected an error on your credit report. A rapid rescore can update your score to reflect these changes and help you qualify for a loan or get a lower interest rate. Thanks to Rapid Rescore you can meet deadline dates during the mortgage process.
If you get into a contract you have deadlines and you will not be able to produce the results quickly enough on your own. However, a Mortgage Broker could. Otherwise, you will have to take the higher rate and move forward. OR worse you can sit there, lose the home you are in contract with and wait several months doing it on your own and guess what rates went higher while you waited, and now you in the same boat as you were when you started. Rapid Rescore is what the Mortgage Broker would do. Every lender should have a rapid rescoring service.
How do I Get a Rapid Rescore?
The first step is to contact your lender and explain that you’d like to request a rapid rescore. They may charge a fee for this service, so be sure to ask about any costs upfront. Once you’ve made the request, the lender will then contact the credit bureaus directly. The process can take a few days to a week.
A rapid rescore can help improve your credit score quickly, which can be helpful if you’re trying to qualify for a loan or get a lower interest rate. This process can also help correct any errors on your credit report. If you’re looking to improve your credit score, a rapid rescore may be the answer. Contact your lender today to learn more about this service and see if it’s right for you.
Who Can Rapid Rescore Consumers
Rapid Rescore is not something you can do on your own. This updates your accounts quickly and is reflected on your mortgage credit report quickly. It is a process. Most Mortgage Brokers will recommend this if your Mortgage credit score is less than you need to get a loan or less than the next tier to get a better rate.
This is done by reducing balances owed, removing derogatory items, or updating balances that are not reflected yet. The Mortgage Broker can review your credit report in depth and use a computer simulator to determine the best action to move forward in order to get your credit score to move up. They can even determine approximately what your score will move up to.
An example of this would be maybe you need to pay down your Capital one credit card to 30% of the highest credit limit. Maybe its only $50.00. You would do this immediately online with Capital one and then print off the documentation showing your new balance. The documentation would need to be given to your Mortgage Broker who would then submit it to the credit agency to rapidly rescore your credit score on a mortgage credit report.
How Does Rapid Rescore Work?
Rapid rescoring is a process that allows you to quickly update your credit score to reflect newly reported information. This can be helpful if you have recently made changes to your credit report, such as paying off a collection account. To request a rapid rescore, you will need to contact the company that provides your credit score. The company will then review your credit report and make any necessary updates. In most cases, your updated score will be available within a few days.
There are some things to keep in mind before requesting a rapid rescore. First, it is important to ensure that the information you are providing is accurate. If there are any errors on your credit report, they will not be corrected through a rapid rescore. Second, keep in mind that a rapid rescore is not a guarantee that your score will improve. The updated information may not have a positive impact on your score, or it may take longer for the changes to be reflected than if you had waited for your score to update naturally.
Rapid Rescore Process And How Rapid Rescoring Works
A Rapid Rescore is an amazing tool if used correctly. You must provide the correct information and do exactly what your Mortgage Broker says to do. If they tell you to pay down Macys so that you have a balance of $28.50, then this is what needs to be done DO NOT pay off Macys. This could affect your score negatively and bring in down instead of up as maybe now you do not have enough credit. It is not to be used to trick the credit beau. This does not work. If you have a late payment on the last mortgage that you had and you were late.
This is not going to go away. However, if you were not late and can provide documentation to this then it would work if that derogatory was affecting your credit score. This is not a credit repair system. Its more of a fast-track path to get inaccurate items removed or changed quickly. If you need a HUGE gain this is not something you should rely on. Although I have seen some scores go up dramatically. You will need to do the work to get it done quickly. This is not something we can do for you.
We can tell you exactly what to do and you will need to do that. Rapid rescoring is a strategy. It can drop your score if you do something in the meantime that wasn’t a part of the plan. Again, only Mortgage Brokers and Mortgage Bankers can do this. Therefore if you hear of another source who says they are doing this, it is not true. Not all Mortgage Bankers or Mortgage Brokers offer this service. If yours does not, come see us! Cost for a Rapid Rescore can be anywhere from $7.50 to $70.00 per account per credit bureau. However, this will be part of the closing cost of the loan. This is not charged up front.
Once the credit report is updated a new score will be reflected on the Mortgage credit report. The loan officer will re-pull another tri-merger credit report of the borrower. The new credit report should reflect all recent updates and credit report changes. For more information about this blog and/or other mortgage-related topics, please contact us at Capital Lending Network, Inc.
Brandi Hopper
Hello,
I currently live in Florida and have been trying to start my home buying process. I was told by 2 lenders that they are no longer accepting a credit score of at least 580 for FHA loans, because of new Covid-19 restrictions. I have a high a score in 600s, but was trying to use a parent as a non-occupying co-borrower but their score is low 600s. I was inquiring if it is still possible to get pre-approved with a low 600s score at in the near future? Are these just the new guidelines that will stay in place going forward or do we need to wait until the mortgage market stabilizes?
Barb Taylor
We have low credit but have had steady income for 5+ years. We have been renting and are eager to purchase. We have heard stories of people getting approved with low credit so we would like to try before the end of our lease in Jan.
Megan Johnson
Gustan Cho Associates is the best of the best. You helped us get set up with our first home mortgage a few years ago. We’re looking at moving again and hoped you could help us.
James Parker, Jr.
I’m already approved for 550,000. I just want to see if I can get a better rate on a home in Snohomish County Washington.
I am a Microsoft employee. A mobile game producer at the Redmond studio.
Gina Anderson
I have been with my current job (self employed) for a year and 4 1/2 months and employed at a 2nd job for about 4 months now. I left a job in July that I had been with for 2 years and 7 months but had to leave due to an inappropriate boss. Every lender I have spoken to require me to have 2 years at my current self employed job in order to get preapproved and I’m unsure of where to go from here. I have found a home I want to buy but need the green light.
Wendy Erickson
I am in an open chapter 13 and want to try to refinance my house with a lower rate. Or at least see what my options are. My plan was 5 yrs, I am 2 yrs in and when Covid started it affected my hours at work, they were cut, and my commission. I asked for a reduction in payments, till my work resumed normal hours/pay, which they granted and has went back to normal in Oct. My case has been all over the board, the trustee moved to dismiss, even though granting the reduction, my attorney now wants to extend my plan to longer terms, I want to refinance to a lower payment so I can pay more on this and just get it over. I dont feel like I even know what is going on, what has been paid/not paid or anything or how to even find out. What do you suggest?
Wendy Erickson
I have been following Gustan Cho Associates for over two years. I have learned so much about mortgages from Gustan Cho Associates. I now notice another website full of informational blogs here at Capital Lending Network. I am in an open chapter 13 and want to try to refinance my house with a lower rate. Or at least see what my options are. My plan was 5 yrs, I am 2 yrs in and when Covid started it affected my hours at work, they were cut, and my commission. I asked for a reduction in payments, till my work resumed normal hours/pay, which they granted and has went back to normal in Oct. My case has been all over the board, the trustee moved to dismiss, even though granting the reduction, my attorney now wants to extend my plan to longer terms, I want to refinance to a lower payment so I can pay more on this and just get it over. I dont feel like I even know what is going on, what has been paid/not paid or anything or how to even find out. What do you suggest?
Jerome White
I am looking to see if I can get approved for a VA Loan with a Charge Off. Please Call Me Back. I have not heard from anyone. Thank you.
Ronald McAlister
I am interested in buying a property in Berkeley California, demolishing it and building two units on the property. The foundation would remain, but would have to be reinforced. I would like to apply for a 203(k) loan. The expected appraisal is $3M.
Ronald McAlister
I am a fan of Gustan Cho Associates. I am interested in buying a property in Berkeley California, demolishing it and building two units on the property. The foundation would remain, but would have to be reinforced. I would like to apply for a 203(k) loan. The expected appraisal is $3M.
Lisa Brown
Hi! We’re looking to purchase our dream house at around $800K – this would be our primary residence. We are liquid enough to pay 20% down on 800K but we only want to put down 10%. Do you offer jumbo loans at 10% down for people in a strong enough financial position? Our estimated credit scores are 780 (squeaky clean credit with past house/car/student loan accounts closed without late payments – no bankruptcies nor evictions), our current debt-to-income ratio is under 2%, and our income last year was $210K with this year on track for $375K. Income is mostly from self-employment (self employed for 11 years now in e-commerce), and to a lesser extent rental property (total LTV of 25% – so we have 75% equity in our rental property). Our liquidity mostly comes from cash and stocks. Let me know if you all can help… we’re searching for a home now in Las Vegas. Thanks for your help.
Kate Lee
I would like to use my VA loan to purchase a house in Fairburn, Georgia. My middle score is 595. My wife’s middle score is 639. Together on the low end our annual income is $90000.
Irene Nakamura
I am a CA resident who owns investment rental properties in TX. I recently purchased a duplex and a 4-plex with all cash. I would like to use delayed financing to get 75% back out of my duplex, and possibly the same arrangement for my 4-plex. To save us all time, I need to know:
1. Do you do delayed financing loans in TX?
2. If so, what are your rates and terms for someone with excellent credit well north of the 760 dividing line, strong W2 income, proven source of funds, and strong debt-to-income ratio?
3. Both of these prospective delayed financing loans are FNMA eligible since I only have two other rental mortgages. (I own three other rentals, all single-family homes, but one is owned outright, one is mortgaged but my equity is above 30% of value, and the other is also mortgaged but my equity is somewhere around 30% of value.) I also have a mortgage on my primary residence, with my equity stake being 34-35% of most recent appraised value.
4. The prospective loan amount listed above is for less than 75% of value of the duplex, which is in Austin area. The loan amount for the 4-plex would be less since it is in a different area of TX. That would probably in the $180k-$185k range.
My best contact is via my email address because I work long hours, but my cell number is 530-204-7031 (does not work when I am home since I live in the foothills)