What is Rapid Rescoring and Should You Use It?

The following is provided for informational purposes only and is not intended as credit repair or credit repair advice.

Most of the time, your credit score doesn't really matter. In your day-to-day life, the minor (or major) rise and fall of your various credit scores doesn't impact you one way or the other.

There are, however, moments when your credit score matters quite a lot. Taking out a large loan (like a mortgage) is one of those days. On days like that, you want your credit to be in tiptop shape. That means you'll want all of those debts you recently paid off showing as paid in full and any of errors you recently corrected reflected accurately on your report. 

Unfortunately, credit reporting isn't instantaneous. Updates can take multiple cycles and multiple months to start reflecting on your credit report. If you're trying to close on a loan where those updates mean the difference between approval and denial, or thousands of dollars in higher interest charges, you may need to turn to rapid rescoring.

For a fee, and with the help of a mortgage lender or broker, you can get your reports updated and rescored in a matter of days, rather than waiting months for those updates to happen on their own.  

How does rapid rescoring work?

You can't order a rapid rescore on your own (and frankly, there's no reason why you would want to). Instead, your lender may offer a rapid rescore if your situation calls for it. Here's what that might look like:

• You apply for a loan. Rapid rescoring is most often used when attempting to close on a mortgage.
• Your credit score comes up short in some way. Creditors often have credit score thresholds for certain loans and other credit offerings.
• You've recently made efforts to improve your credit, but these efforts may not be reflected in your report yet. This includes paying off debts, resolving credit reporting errors, and more.
• The lender will manually submit proof of these recent updates to the credit bureaus.
• Once your credit report has been updated, the lender will then re-evaluate your application with this new information.

With rapid rescoring, updates that may have taken 30-60 days to show up in your credit report will be there in 3-7 business days.

How expensive is a rapid rescore service?

The cost for rapid rescoring varies, but the range seems to be $30 to $50 per account, per credit bureau. So if you need multiple accounts updated across multiple reports, the costs can rise into the hundreds.

It's not cheap, but if you've made recent positive changes to your credit, it's potentially a drop in the bucket compared to what you may be able to save in future fees.

Keep in mind, though, that you wouldn't be paying the credit bureaus directly. The lender who orders the rapid rescore may cover the costs, though they're just as likely to roll those costs into your closing costs.

Is it worth it?

The only thing a rapid rescore can accomplish is a faster update to your credit report. It won't resolve any outstanding errors in your credit report, ignore existing negative marks, or unnaturally inflate your credit score.

The only reason to pay for a rapid rescore is if you're applying for a credit product and believe that more recent credit information will help your case. It's not credit magic, but if you're on the borderline with a loan application, it can push you over the edge (in a good way). It's not a decision you make independently. Your lender is likely only going to suggest a rapid rescore if it helps you meet their lending standards.

If you're building toward a major purchase and worried about coming up short, consider working with a nonprofit debt and credit expert. Credit counseling from MMI is a great way to take an unbiased look at your finances, create a debt repayment plan, and start building better credit health. And best of all, it's free and available 24/7, online and over the phone.