When a consumer makes spending choices that affect their credit report, the bureaus don’t update this information right away. In fact, it can take a month for new information to appear on a credit report. This is why it’s often necessary for lenders to append additional information to the borrower’s file before closing. This is where credit supplements and rescores come in. Oftentimes, these two terms are mentioned in similar contexts, so it’s only appropriate that we distinguish them from each other. So what’s the difference between a supplement and a rescore?
What is a Supplement?
A supplement provides additional information about tradelines on a credit report after it is pulled. There are quite a few reasons a lender might request a supplement. Here are a few:
- The lender may request an updated balance and payment history on the existing credit file
- The lender may want to add rental history or other non-traditional tradelines to the file to show proof of payments
- The user has been removed as an authorized user, but authorized user status hasn’t been removed from their report
Keep in mind, there is no correspondence between the lender and the credit bureaus when retrieving a supplement.
What is a Rescore?
A rescore is requested when a creditor has been paid off and the lender needs to have the report updated quickly at the bureau level. For this reason, it is also referred to as a “rapid rescore”. Obtaining a rescore will amend the credit file permanently, and the borrower’s score will be updated.
Once a file is changed due to a rescore, the lender must then re-pull the credit file to get the results from the rescore.
Supplements and rescores are just two of the services Data Facts provides as part of our comprehensive suite of tools lenders can trust. To learn more, check out our lending solutions webpage.