If you read about the housing market a lot, or you’ve recently been house hunting, you might have heard of something called ‘rapid rescore.’ Essentially, this is a service that mortgage lenders provide to certain clients in order to immediately boost credit scores. The main goal of a Rapid Rescore being to make it easier to purchase a home.
In some instances, a Rapid Rescore can be a good thing, but it’s not a strategy for everyone. If you’re considering paying extra for this service (or just want to know more about it), here’s some detailed information to take into consideration prior to opting for this service.
Not A Clean Slate
If you have bad credit, buying into a Rapid Rescore service isn’t going to fix that bad credit. Here’s what it will do:
- Update your credit immediately
- Allow you to purchase a home with updated information
Here’s what a Rapid Rescore won’t do:
- Fix any major credit problems
- Help you gain credit approval if your credit is truly bad
- Eliminate any bankruptcy notifications that might be listed on your credit report.
How It Works
1. Corrected credit report information is updated (so, let’s say that you’ve recently paid off a credit card or two, and you opt for a Rapid Rescore. Instead of waiting months for that update to happen, the information is fixed immediately).
2. The updated details are sent to the credit bureaus.
3. The lender then asks for an updated score that reflects the new changes.
All of this happens within days, but it’s not a service that you can get on your own. This is a value added service that lenders provide to certain people.
Not For Everyone
A Rapid Rescore is a great tool if your credit report needs a small bump – 5-10 points max. But, it’s not a tool that will work (or even be offered) if you’ve missed payments or have bad credit. In order to fix those problems, you will have to fix your credit. Normally, it takes six months to one year to fix credit problems, so keep this in mind prior to shopping for a mortgage. If you see any problems on your credit report, we still recommend fixing those issues in writing.
Getting a higher credit score immediately can make a huge difference where interest is concerned, and for some people it might even mean getting a mortgage as compared to not getting approved at all.