topic Is a rapid rescore a new credit hit? in Mortgage Loans

Is a rapid rescore a new credit hit?

Anonymous — Fri, 21 May 2021 15:52:16 GMT

So I applied for my mortgage and they pulled the credit on the 6th of may. We are getting ready to go to underwriting, but my LO had me pay off my loan chargoff to get in under the DTI. We just did a call in to that creditor to verify payment; however the payment hit experian and my FICO 2 shot up 33 points putting me in the next bracket. I assume I need them to do another hardpull, or is there a way around that?

Re: Is a rapid rescore a new credit hit?

ShanetheMortgageMan — Fri, 21 May 2021 16:02:57 GMT

Yup, a new hard inquiry will occur after the rapid rescore is complete. It's not always automatic though, sometimes the loan officer gets notified that the rapid rescore is complete and credit is ready to be re-checked (vs. sometimes the credit vendor automatically checks credit after the rescore is complete, just depends on how it's set up).

Re: Is a rapid rescore a new credit hit?

in4maous — Fri, 21 May 2021 21:47:18 GMT

So you paid off a charge off and your score shot up? I'm so happy for you because I am in the same boat right now. I just paid off 2 chargeoffs and I hope my mortgage scores jump. This post is encouraging.

Re: Is a rapid rescore a new credit hit?

House2021 — Sat, 22 May 2021 02:34:19 GMT

What type of loan charge off was it, was it an auto charge off?

Re: Is a rapid rescore a new credit hit?

Anonymous — Sat, 22 May 2021 19:37:21 GMT

@House2021 wrote:
What type of loan charge off was it, was it an auto charge off?

o, it was an old Merrick Bank CO with CW NEXUS.

Re: Is a rapid rescore a new credit hit?

in4maous — Sun, 23 May 2021 14:43:47 GMT

My chargeoffs is Merrick and US Bank. How long did it take Merrick to report a zero balance? I need 28 points for a 700 middle score and hope this helps me as well after paying off my charge offs.

Re: Is a rapid rescore a new credit hit?

House2021 — Sun, 23 May 2021 15:27:51 GMT

most of mine updated from my April 12 payments, but TD Bank first took almost 30 days to update to reflect the payment made and only reduced amount owed by amount paid and won't be updated until June 4 with changing balance to$0 so almost 60 days. Barclays took 41 days before reporting any payment, the others were quicker.

Re: Is a rapid rescore a new credit hit?

in4maous — Fri, 28 May 2021 23:35:07 GMT

So Merrick Bank updated my account balance to zero today after paying the CO, but they still posted a May CO. Can I call and ask them to remove May CO since the balance is now settled?