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Rapid rescore or rescore-- is there a difference?


Kevin4316
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Obviously there's a difference in method, but (to your likely point) there's no difference in the end result:  Equivalent updates to your credit report translate to the same FICO score result.

 

"Rapid" rescore comes into play when scores are pulled for a rate quote and it turns out that the score in question is close to to a higher threshold for a lower rate.  A borrower might propose a large repayment of a revolving balance in hope for sufficient score boost, but doesn't have the time to make such a payment and wait for the credit report balance to eventually be updated by the creditor.

 

Instead, the payment is posted to the credit account and documented by a 3rd party reporter.  It's grey to me whether they obtain updates from the 3 CRA's, or manually rescore themselves, providing the result to your lender.  Presumably this can take place within a week's time.

 

The score impact of such a "rapid rescore" will be no different than if the creditor updated the CRA's in time, and your lender subsequently pulled updated scores.

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From my understanding..

"When a mortgage lender pulls your tri-merge credit report, it will include your FICO® score as calculated by each credit reporting agency.

Most lenders use the middle score (or the lower middle score if you jointly apply)."

 

This has held up true for our situation.. long story short, our middle score was borderline approving. So I mentioned and asked the lender about a rapid rescore after settling collections on the reports. We contacted the collection agency that was reporting, paid off 2 small collections that show on the credit reports and this agency sent deletion letters stating the account was deemed satisfied, and the three bureaus would be updated as soon as possible. 

I sent the letters to the lender but I've had trouble bc the letters are worded using future tense terms, "will update bureaus asap".. the collections are updating and have been removed as far as "credit karma" updates, "credit wise" (through capital one app), Experian website, we've gotten notifications through all these and it's specially showing these collections removed and scores increased... So I'm now wondering, should we still have our lender try the rapid rescore with no documents (bc lender isn't accepting the delete letters) or should I just be having him rescore (recheck) the middle score/report they're using for our application? Thanks so much for all the advice and help! I truly appreciate it!

Edited by Kevin4316
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If I understand, the tradeline has been removed from the CRA's  If so, then if your lender pulls updated scores, it should reflect these updates.

 

btw, the best way at the present time to confirm what's reporting on your credit reports is to pull reports from all 3 CRA's via the http://www.annualcreditreport.com website.  Reports are currently free and may be updated weekly.

 

Please understand that collection tradelines that are updated to satisfied tend to yield only modest improvements to credit scores.  (Removal of a collection, such as when it ages past 7 years, when it's the last derogatory on your report can yield a large score bump).

 

Fingers crossed that the report update gets you the needed boost for a rate cut!

Edited by hdporter
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