What Is Credit Rescoring?

Your credit score is like your report card. In the simplest terms, it's a three-digit number that lenders use to gauge how well you manage debt. Whether you're applying for a mortgage, a car loan, or even a new credit card, your scores (yep, you have more than one) play a crucial role in determining whether you'll get approved and what interest rates you'll be offered.

So, what exactly goes into calculating this all-important number? There are five key components: 

1. Payment history 

2. Outstanding balances  

3. Length of credit history 

4. Number of new inquiries  

5. Credit mix  

You might’ve heard something to the effect of “your credit score isn’t just a number—it’s a reflection of your financial responsibility,” and it can open doors to better lending options and lower interest rates. Maybe a little melodramatic, but it’s true. However, your score can always improve, especially with a little help from your friends at Atlantic Bay. 

What is Credit Rescoring? 

Our team at Atlantic Bay offers what we call “credit rescoring.” For those with less-than-ideal credit or who aren’t sure where they stand, we can assess their situation and offer tips on how to address their debts, so they have an improved chance of obtaining a better score or simply qualifying for their loan. 

We start by running "what-if" scenarios with our analyzer software to determine the best course of action. Maybe it's as simple as paying off a credit card or medical collection. 

More in-depth rescoring can include working with an outside firm to contact the bureaus for you, provide your updated documentation, and even hold a three-way call with you, the creditor and the bureaus. Then we are notified your rescore is complete and your report is reissued or refreshed. The process must be completed within 30 days of the initial credit pull, and the sooner the better.    

Who Can Request a Credit Rescore? 

A credit rescore is generally available to borrowers who are actively seeking a loan or have made recent, positive changes to their credit report that could improve their credit score. It’s a tool that, when used appropriately, can help borrowers qualify for better loan options. 

Credit Rescoring is Unique to Atlantic Bay  

Many lenders do not accept credit rescoring, which can force future homeowners like yourself to wait lengthy periods before reapplying. However, at Atlantic Bay, we approach things a little differently. 

Not only do we accept credit rescores, but we actively look for opportunities to improve your credit profile. This can result in a better interest rate or an improved chance of qualifying for a loan. 

When is a Credit Rescore Helpful? 

Suppose your credit score is just below the threshold needed to qualify for your dream mortgage. A rescore that increases your score by even a few points could be the difference between approval and denial. 

Expert Tip

A higher credit score often translates into a lower interest rate. If a rescore boosts your score, you might qualify for a better rate, which could save you thousands of dollars over the life of the loan.

What Credit Qualifications Do Lenders Require?

Credit rescoring is a helpful tool in your homebuying toolbelt, but it’s important to understand the credit qualifications that lenders typically look for in the first place. Most loans fall into one of the following four categories:  

• Conventional loans 

• Federal Housing Administration (FHA) loans 

• U.S. Department of Agriculture (USDA) loans 

• U.S. Department of Veterans Affairs (VA) loans 

When it comes to government-backed loans, institutions like Atlantic Bay must adhere to certain agency guidelines. However, the lender ultimately determines the minimum credit score they will accept. 

So, How Can I Improve My Credit Now? 

Regardless of the loan program, one of the most important steps you can take to maintain good, qualifying credit is to make all your payments on time. 

Late payments can lower your credit score, and serious delinquencies, such as collections, can remain on your credit report for up to seven years.

Now, let’s say you just pulled your credit score and you’re not happy with the number. There are a few ways you can work with the Atlantic Bay team to get that number up (with a little dedication and time). 

Expert Tip

We can focus on making a list of debts you have, strategize a monthly plan to get that number down, make sure we’re paying down that bill every month, and – of course – investigate credit rescoring for your unique situation.

If you have questions on how to come up with a payment strategy or just general credit questions – we’re here to help you. 

And What About Credit Boosters? 

Since improving your credit score is such a common goal for so many people, we’ve seen a rise of so-called "credit boosters" - strategies, tools, or services designed to help achieve that aim. These can include credit repair services, credit-builder loans, and apps that report additional payments to the major credit bureaus.  Do they really work? Well, like anything in life, the answer is...it depends.

More of Atlantic Bay’s Competitive Advantages 

And while credit rescoring is a powerful tool for improving your credit score and securing better loan options, we understand that it's just one piece of the puzzle. Borrowers have many other concerns when it comes to the homebuying process. That's why Atlantic Bay brings a host of competitive advantages to the table – including a variety of loan programs, full upfront underwriting, and a 98.4% close-by-contract date reputation (as of Sept. 2024) – to give you the peace of mind you deserve.

At Atlantic Bay, we’re here to support you every step of the way, providing the guidance and resources you need to make informed decisions and achieve your homeownership goals with real confidence.