Did you know that your credit score will affect the interest rate you are offered for a mortgage? And did you know that even a few points added to your credit score can make a large difference in not only your monthly payment but the total amount of interest paid over the life of the loan?
Because the credit score is so important in loan approval, some lenders, including banks, credit unions, and mortgage brokers are able to update your credit report in a matter of days with the rapid rescore program after paying off a collection account or reducing a credit card balance.
According to Experian, "Reducing high credit card balances can help your credit score by reducing your utilization rate, also called your balance-to-limit ratio. Your utilization rate should be no more than 30%. The lower your credit card balances are, the better."
The rapid rescore program works best with lenders who use a credit score improvement program. The credit simulators help lenders determine what improvements on your credit report will have the strongest impact on your credit score. The rapid rescore program is not credit repair, but a fast-acting reporting service. Waiting 30 to 60 days for a change on your credit report could jeopardize the home sale.
What do I have to do?
After the lender advises you to take action on one or more accounts, you follow the lender's advise and payoff or pay down the creditor(s). You ask the creditor to fax, not mail proof that you made a payment. After receiving proof of the change, the documentation is provided to the mortgage lender. The lender then submits the documentation to the credit agencies for a credit rescore.
How long does a rapid rescore take?
Updating a credit report typically takes 30 to 60 days, however, the rapid rescore program can update the credit report in as little as 3 to 5 days.
How much does it cost to do a rapid rescore?
Lenders are not allowed to charge a separate fee for the service under federal law Fair Credit Reporting Act (FCRA).
Can I request a rapid rescore?
The credit rescore program is only offered to lenders, individuals cannot request a rapid rescore on their own account.
How much does a rapid rescore raise credit?
Expect modest credit score gains . . . 15 to 20 points. But that might be the difference between loan approval or rejection, not to mention the impact on your credit score.
Rapid Rescore Frequently Asked Questions
Q. Does rapid rescore really work?
A. Rapid rescore does work. Rapid rescore is not a magical way to increase your credit score, it is a method for a re-evaluation of your credit profile and score.
Q. How can I get a rapid rescore?
A. The rapid rescore program is not open to the public. Only lenders are able to utilize the rapid rescore program.
Q. How does rapid credit rescore work?
A. The lender will recommend that you do one thing or another to increase your credit score. The lender may suggest that you pay down on your credit balances, payoff collection accounts, etc. After preceding with the lender's advice, you will then request a letter from the creditor that you upgraded your account. After you receive the creditor's letter, you will pass the letter to the lender who will submit the letter to the three credit reporting agencies for an update of your credit report and score.