Borrowers increasingly are turning to "rapid rescoring" to polish their credit ratings. In the process, lenders or mortgage brokers review an individual's credit file and offer suggestions that will help boost a score that has been impacted by a few missed payments or a single error, for example, rather than necessarily by poor credit.
Rescoring software can sweep a credit file for items that can be addressed quickly, resulting in a fast improvement in the credit score. Paying down a credit card by several hundred dollars, for example, might lift a credit score by 30 points -- which could not only qualify a borrower for financing but also save him or her a point on the mortgage. "Saving a point or more on your home loan could translate into a long-term savings of more than $40,000," according to Carla Showalter of Bulk Home Buyers.