When you apply for credit, such as a loan or credit card, a bank or other financial institution will check your credit score. A high credit score shows that you’ve managed credit responsibly and are likely to pay back a debt on time. On the other hand, a low credit score indicates that you may be more prone to default.
A rapid rescore may be able to help you appear more attractive to lenders and increase your chances of qualifying for credit. In this article, we’ll take a close look at what a rapid rescore is, how it works, as well as other things you need to know.
How Is Your Credit Score Calculated?
Your credit score is a three-digit number that indicates your creditworthiness or the likelihood of repaying debt on time. It’s calculated based on information in your credit report, which includes your credit history and current credit usage. The following factors are typically used to calculate your credit score:
- Payment history. This includes on-time payments, late payments, and any missed payments.
- Credit utilization. This refers to the amount of credit you’re using compared to the amount you have available.
- Length of credit history. This takes into account the age of your oldest and newest accounts, as well as the average age of all your accounts.
- Types of credit. This considers the mix of credit accounts you have, such as credit cards, loans, and mortgages.
- Recent credit inquiries. This counts the number of recent credit checks or applications, which can indicate a higher level of credit risk.
Different credit scoring models may place different weight on these factors, but generally, your payment history and credit utilization have the biggest impact on your credit score. Consistently making on-time payments and keeping your credit utilization low, leads to a high credit score.
Your credit score is usually updated periodically, typically every month, based on the information in your credit report. The credit bureaus, such as Experian, Equifax, and TransUnion, regularly receive updates from lenders and other sources about your credit history. This information is used to update your credit report and, in turn, your credit score.
What Credit Score Do You Need?
The credit score you need can vary depending on the type of credit you are seeking and the lender’s requirements. Here are some general ranges for credit scores and what they may indicate:
- Excellent credit score: 750 or above
- Good credit score: 700 to 749
- Fair credit score: 650 to 699
- Poor credit score: 600 to 649
- Bad credit score: below 600
Lenders often use these ranges to determine your creditworthiness and the interest rate you’ll be offered on a loan. The higher your credit score, the more likely you are to be approved for credit and receive a better interest rate.
It is important to note that credit score requirements can vary depending on the lender and the type of credit being sought. For example, a mortgage lender may have a higher credit score requirement than a credit card issuer. To determine the specific credit score requirements for the type of credit you are seeking, it is best to check with the lender directly.
How Does A Rapid Rescore Work?
A rapid rescore works by quickly updating your credit report with accurate information. The process typically involves the following steps:
- Obtaining a copy of your credit report from all three credit bureaus.
- Identifying any errors or outdated information on the credit report.
- Providing documentation to support the correction of errors or outdated information.
- Contacting a rapid rescore provider to request updates to the credit report.
- Monitoring the credit report to ensure the changes have been made and the credit score has improved.
The rapid rescore provider works with the credit bureaus to make the necessary updates, which can result in an improved credit score. The goal of a rapid rescore is to provide individuals with an accurate and up-to-date credit report that accurately reflects their credit history, which can increase their chances of qualifying for credit.
If you need to improve your credit score quickly for a specific purpose, such as applying for a loan or getting a better interest rate, you’ll benefit from a rapid rescore. This option is also ideal if you have recently taken steps to improve your credit, such as paying off debts or disputing errors on your credit report.
The Bottom Line
A rapid rescore is a valuable option if you need to improve your credit score quickly. And this is done by updating your credit report and, by extension, your credit score with accurate information.
Thankfully, a rapid rescore is not your only option when updating your credit score with accurate information. Enter credit restoration, the process of removing negative information from your credit report.
Call us at 888-799-7267 to schedule a Free Credit Consultation.
