How ‘rapid rescore’ affects your credit

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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.

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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.

Rapid rescore updates credit files and scores © Andy Dean Photography/Shutterstock.com

A rapid rescore is a two-step dance. First, corrected or updated information is verified (by the mortgage lender’s credit reporting entity), and then it’s submitted to the credit bureaus.

With a rapid rescore, the information is added to the consumer’s file within days. Then the lender requests an updated credit score.

Not every lender offers the option, says Cay Stull, a loan originator with SWBC Mortgage Corp. “It all just depends on the originator.”

But consumers can’t get a rapid rescore on their own. It’s a service that the bureaus offer for a fee to their clients, which are lenders or residential mortgage credit reporters, says Andrew Smith, partner with Washington, D.C.-based Covington & Burling, LLP.

Written by
Dana Dratch
Personal Finance Writer
Dana Dratch is a personal finance and lifestyle writer who enjoys talking all things money and credit. With a degree in English and writing, she likes asking the questions everyone would ask if they could and sharing the answers — along with smart money management tips from the experts.