When getting a mortgage, “rapid rescore” is a phrase worth knowing.
But what does it mean? Bottom line: It’s a practice used by mortgage originators to help lift credit scores.
Credit scores ebb and flow as information is updated to the credit report. While the rapid rescore has “been around forever,” the concept of quickly updating a credit history — and getting a new credit score based on that newly updated file — has gained traction in the last few years, says Linda Davidson, a loan officer with Service First Mortgage.
“It’s much more important today than it’s ever been because credit scores have become king,” she says.
The market for the rapid rescore is almost exclusively mortgage loans, says Maxine Sweet, retired vice president of public education for credit bureau Experian. “Those are the ones that are not only rate-sensitive but time-sensitive.”
Here are five things you should know about the art of the rapid rescore.