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What You Should Know
- A rapid rescore allows an individual to dispute errors in their credit history and reflect the changes quickly.
- A person cannot request rapid rescoring directly, but they can use lenders and brokers to do it for them.
- A rapid rescore is useful when there are inaccuracies in credit history, but it may not yield any results if the credit history is free from any errors.
What Is Rapid Rescoring?
A rapid rescore is a method to increase an individual's credit score within days by providing the major credit bureaus with proof of positive account changes. The method focuses on clearing negative or false information from the data available to the credit bureaus. This may be useful to a person who is planning to apply for a mortgage soon because credit score affects the interest rate and chances of approval for a mortgage.
A person should get a free credit report and look at their credit score before applying for a mortgage. If they see some information that is false or outdated, a person can contact the bureau to request changes to that information. This way a person may increase their credit score quickly and without any additional payments. Rapid rescoring, on the other hand, is usually provided by mortgage lenders and real estate brokers to increase credit scores very fast, but it may be costly. Mortgage loans can be time-sensitive, and if a borrower needs a few extra credit points to qualify for a mortgage, rapid rescoring may be very useful.
|Pros And Cons of Rapid Rescoring|
|Quick to Reflect Changes||Expensive|
|Large Increase in Credit Score Is Possible||May Not Be Useful|
How Does Rapid Rescoring Work?
A person who requires a quick increase in their credit score to qualify for a mortgage may ask for a mortgage lender or a real estate brokerage to do a rapid rescoring. During a rapid rescoring, an agency collects the information on the buyer's accounts and looks for inconsistencies among the credit bureaus. If any mistakes are found, they file a dispute with the credit bureau. The agency can pay a fee to a credit bureau to process requests within an expedited time frame. This way a new credit score may be reflected within a few days.
Once the credit bureau updates the credit score, a lender can request a new credit score and can reevaluate mortgage conditions based on the new information available. This kind of service is usually offered by lenders, and it is not possible to request it directly by an individual. This service may be quite expensive, and the total price depends on the number of accounts a person has. The price to update 1 account is around $25 - $40 per one credit bureau, and there are 3 major credit bureaus in the US. This means that updating 1 account may cost as much as $75 - $120. If an individual owns 5 bank accounts that all need to be updated, then a rapid rescoring procedure may cost around $375 - $600.
Is Rapid Rescoring Worth It?
Rapid rescoring is a useful tool to increase a credit score quickly, but given the costs associated with this method, it is certainly not something everyone should use. It is useful only when a credit score needs to be improved quickly and if it can even be improved in the first place. A person should check their credit reports before asking for rapid rescoring because if all the information on all credit reports is correct, then rapid rescoring will not bring any significant results. This is why an individual should check their credit score before requesting rapid rescoring.
Rapid rescoring should not be used when a person is not applying for a loan. Credit bureaus tend to update their database regularly even though it might take some days to reflect the changes. If a person notices a mistake in their credit report but is not applying for a loan, they are better off disputing the errors directly with the credit bureaus and waiting until the changes are reflected.
Rapid rescoring is not an option to pay for an unconditional credit score increase. If a person has a poor credit history that is error-free, then the person is unlikely to repair their credit score using rapid rescoring. Instead of paying for rapid rescoring, this person should either repair their credit score before applying for a loan or look for ways to buy a house with bad credit.
Pros And Cons of Rapid Rescoring
Rapid rescoring is a tool that may be useful in some situations, but for many people, it may not provide desired results. It is important to understand the pros and cons of rapid rescoring before requesting one.
Quick to Reflect Changes
The biggest advantage of rapid rescoring is the fact that it is truly rapid. Usually, it takes days or weeks to reflect changes to a credit score. A rapid rescoring allows the changes to be reflected in an expedited time frame, which is very useful when a buyer does not have much time to close a deal on a property.
Large Increase In Credit Score Is Possible
There is no limit on the number of points a person can get from credit rescoring. Rapid rescoring does not guarantee an increase in a credit score, but if credit history is full of errors that affect credit score negatively, fixing them all up at once may lead to a great boost to the credit score.
Rapid rescoring is being done by qualified mortgage lenders. This means that they can identify errors present in a credit history. After the procedure is complete, a client may be sure that their credit history is up to date and should not contain any errors.
The main reason why rapid rescoring should not be used by everyone is that it might be expensive especially if an individual has many accounts. An average price for rapid rescoring for all 3 major credit bureaus is $75 - $120 per account. The more accounts a person has, the higher the price for this service will be.
May Not Be Useful
Rapid rescoring is useful only when there are errors present in a credit score. If a credit score has no errors, then rapid rescoring will not yield any results.