A “Rapid re-score” is a service offered by lenders or mortgage companies to quickly update a consumer's credit report. It can be used to improve a credit score after resolving specific issues, such as updating balances or correcting errors
Can Anyone Do It?No. A consumer must use a lender or mortgage company to initiate this process.
How Long Does It Take?The average rapid rescore takes approximately 2-5 business days.
Why Do It?To improve your score and get a better interest rate.Is
It Free?No. However, mortgage lenders are required to cover this cost for you.
Common Example...You found your dream house. You make an offer and it's accepted. The mortgage company pulls your credit. Your score is 698. This qualifies you fora 6% interest rate. The mortgage company says, if your score was 700, you would qualify for a 5.75% rate. The difference translates into $75/month less monthly payment ($27k over the life of the loan). Your mortgage company runs a score simulator. It reveals lowering your Capital One card by $22 will earn you 8 points. There is a problem. Capital One says they won't report your $22 payment for another 3 weeks.
This is a problem because your purchase contract dictates you need to close your loan in 2 weeks.
Time for a rapid rescore! Your mortgage company gets proof from Capital One of your lower balance and submits it. Your report is re-pulled 3 days later and your score is now 702. Your loan officer locks your rate and at 5.75%. You close in 2 weeks, as planned.I have access to a lender who can do a rapid rescore for equipment and mortgages where Fico is challenged - if it's necessar for a particular loan program.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
Broker, Underwriter, general business loan expert
949.228.1050
