Definition: Rapid Rescoring and How it Works

Read Time: 3 minutes

Rapid rescoring is a process that involves quickly updating and correcting information on a credit report in order to improve an individual’s credit score. Primarily offered by credit repair agencies and mortgage lenders, it is an expedited service that seeks to address and rectify errors or outdated information on a credit report that may be affecting a person’s credit score and their ability to qualify for a mortgage.

Unlike the standard procedure of disputing credit report errors, which can take a significant amount of time, rapid rescoring speeds up the process, potentially leading to quicker credit score improvements.

Key Features of Rapid Rescoring

  • Expedited Dispute Resolution: Rapid rescoring fast-tracks the process of correcting errors on a credit report, significantly reducing the waiting period compared to traditional methods.
  • Direct Lender Involvement: Often initiated by mortgage lenders or brokers, rapid rescoring helps borrowers improve their credit scores quickly, usually in the context of qualifying for a loan.
  • Quick Credit Score Boost: Particularly useful for individuals needing immediate improvement in their credit scores for specific financial opportunities.
  • Temporary Service: It’s important to note that rapid rescoring is a one-time service; it does not provide ongoing credit monitoring or long-term credit repair solutions.

History of Rapid Rescoring

Rapid rescoring emerged as a response to the need for quicker credit score corrections in the context of lending. Historically, correcting errors in credit reports was a lengthy process, often taking several months.

As the credit industry evolved, lenders and credit bureaus recognized the need for a more efficient mechanism to rectify inaccuracies, especially in time-sensitive situations like loan approvals. This led to the development and adoption of rapid rescoring services in the late 1990s, providing a valuable tool for both consumers and lenders.

How Rapid Rescoring Works

The rapid rescore process usually takes three to five business days and requires the help of a lender or mortgage broker. Consumers who try to improve their credit score by contacting a credit company can spend 30 to 45 days fixing a bad credit report, says Christopher Lauria, president of Legacy Credit & Debt Advisors in Frisco, Texas.

One reason is a credit service legally has 30 days to respond to a request, which is what they normally take with requests from individuals, he says.

“The rapid part is people are in the middle of a mortgage and they’re ready to get a house,” says Lauria, explaining why many homebuyers want a rapid rescore.

Rapid rescoring can cost anywhere from $40 to $120, depending on the ask. Typically you will pay a small fee, up to $40, for each credit bureau you request. If you have multiple credit accounts that need to be fixed, each could have a separate fee as well.

To better illustrate how rapid rescoring works, consider this scenario:

Sarah is applying for a mortgage and discovers her credit score is lower than expected due to a mistakenly reported late payment on her credit card. She provides her lender with proof that the payment was made on time. The lender then contacts the credit reporting agencies to initiate a rapid rescore.

Within a few days, the error is corrected, and Sarah’s credit score is recalculated, reflecting a higher score that qualifies her for a better mortgage rate.

Is Rapid Rescoring Right For You?

Rapid rescoring has significantly impacted the lending industry and consumer finance. It has empowered consumers by giving them a tool to quickly improve their credit scores and enhance their borrowing capabilities.

The ongoing evolution of this service is shaped by advancements in technology and data analytics, leading to more accurate and efficient credit reporting processes. However, it’s not a universal solution for all credit issues.

Consumers should consider the cost, the specific errors on their credit report and the urgency of their credit needs when deciding if rapid rescoring is right for them. It’s most beneficial for those who have specific, demonstrable errors on their report and are in the process of applying for a loan. While it’s not a substitute for long-term credit management and repair strategies, it serves as a critical resource for consumers needing immediate credit score improvements for specific financial goals.

David Mully

David Mully is president and CEO of Lender Insider, a mortgage consulting firm. With 26 years in the mortgage industry, he has worked as both a mortgage loan officer and in the business-to-business sector of the industry. He is the former author of the weekly “Mortgage Search” column for Observer and Eccentric Newspapers. You can read his blog at http://www.lenderinsider.com/blog.

Compare Rates and Save on Your Mortgage Loan

See Today's Rates