How a Rapid Rescore Affects Your Credit

credit score use on a loan application document
If you need a loan quickly or are applying for a credit card or any other form of credit, you may want to consider boosting your credit score before negotiating. Your credit score will directly affect the interest rate you can expect while securing any form of loan and even a few points added to your credit score can make a large difference.

A higher credit score brings larger savings on annual percentage rates, fees and higher bonuses and perks. Although obtaining a good credit score takes some time, there is a way for you to speed up any good work you have done towards raising your score.

What is a rapid rescoring?

A rapid rescore is a service offered by some lenders, including banks and credit unions, to request a fresh and current version of your credit report in a matter of days. This is considerably quicker than the monthly timeline in which your credit is commonly updated.

each month credit bureaus update over 1 billion data sources

Since updates to your credit history are the lenders’ responsibility to report, any changes to your credit score usually takes around a month. Lenders typically send their reports to the three major credit bureaus in large batches which slows down the process.

Although rapid rescoring is often promised as a way to raise your credit score, it is nothing more than a way to update your credit report to its most recent version. Rapid rescoring is not to be confused with credit repairing and in some cases your credit score can drop if you partook in negative lending practices between the time your credit was last updated.

When to use a rapid rescore

A rapid rescore is best used when it will work to your advantage — right before you apply for a large loan, credit card or any form of credit. A rescore will ensure that your entire credit profile is completely updated and ready for any application process.

How it can help your credit score

If you worked on any last-minute credit building practices or requested for the removal of any negative items, a rapid rescore will make sure all of your latest work is reflected on your credit report. If you made early payments on any outstanding credit, removed any negative entries on your credit report or recently paid back any debt, a rapid rescore will show improvements to your credit score quickly.

When it will hurt your credit score

If you have recently missed a credit card payment, had a raise in hard inquiries, closed out a line of credit or had any other form of negative entry, requesting a rapid rescore would lower your credit score. A rapid rescore will not raise your credit score alone, but rather update your current credit profile.

How much does a rapid rescore cost?

Some companies will offer rapid rescore services as standalone packages which typically cost around $20 to $30 for real estate lenders and around $100 for banks and credit unions. Typically, if you are applying for a large loan or mortgage, the lender will offer a rapid rescore as part of their internal process. This is not necessarily for your benefit, however, it is part of the loan process to ensure the most accurate and to date information is in their system.

How long does it take to get a rapid rescore?

timeline showing the difference between normal credit scoring and rapid rescoring

Rather than taking the normal 30 to 60 days, with a rapid rescore your credit can be updated within 3–5 business days. The turnaround time on a rapid rescore is not instantaneous because many aspects of your credit report need to be checked in with lenders and banks.

How to repair your credit properly

If you are looking for long-term credit building practices, a rapid rescore will not be the solution for your needs. It is important to build your credit score over a long period by practicing positive borrowing habits like paying your bills on time and keeping your utilization low. It is equally as important to also stay on top of negative entries that are either outdated or reported in error. Credit repair services pinpoint negative items on your credit report that are outdated or filed in error and remove them from your report.

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