Does Changing Address Affect Credit Score?

Moving often brings many tasks, and concerns about how a change of address might impact one’s credit score are common. Understanding this relationship can help alleviate worries and guide responsible credit management during a move.

The Direct Relationship

A change of address does not directly affect your credit score. Credit scoring models, such as FICO and VantageScore, do not use your residential address as a factor. Your credit score reflects financial behavior: payment history, amounts owed, credit history length, new credit, and credit mix.

Credit bureaus (Equifax, Experian, TransUnion) collect and store your current and past addresses. This information helps verify your identity and differentiate your credit file from others. While an address is on your credit report, it does not contribute to your score.

Indirect Influences on Your Credit

While changing your address does not directly impact your credit score, related actions or oversights during a move can indirectly lead to negative consequences. Missed communications from creditors are a common issue. Failing to update your address means bills or notices might go to your old address, leading to missed payments. Late payments significantly lower your score.

Identity theft is another concern. If mail is not properly redirected, sensitive documents could fall into the wrong hands. Thieves might use this information to open fraudulent accounts or make unauthorized purchases, negatively affecting your credit. Monitoring your credit report can help detect such activity.

Moving often involves setting up new utility accounts or applying for new credit. New utility services may result in a “hard inquiry” if the provider performs a credit check. A single hard inquiry has minimal, temporary impact, but multiple inquiries in a short period are viewed less favorably. Applying for new credit cards or loans for moving expenses also leads to hard inquiries and changes in credit utilization, both credit scoring factors.

Updating Your Information

Updating your information when changing addresses helps protect your credit health. Notify all creditors and financial institutions (banks, credit card companies, loan providers) of your new address. Many allow updates through online portals, mobile apps, or by calling customer service. This ensures important statements and communications reach your current residence.

You should also update your address with the major credit bureaus: Equifax, Experian, and TransUnion. While your creditors will generally report your new address to the bureaus after you update your accounts, you can also contact the bureaus directly to ensure your information is current for identity verification purposes. You may be able to update online, by phone, or by mailing in documentation.

The United States Postal Service (USPS) offers a mail forwarding service that can redirect your mail from your old address to your new one. You can set up mail forwarding online for a small identity verification fee, typically around $1.10, or in person at a post office using PS Form 3575, which is often free. This service helps prevent important mail from being lost or delayed during your transition. Beyond financial accounts, updating your address with other relevant parties like utility companies, your employer, and government agencies such as the Internal Revenue Service (IRS) is also advisable. Updating your address with the IRS, for instance, ensures you receive all tax-related correspondence and any potential refunds without delay, which is important for your overall financial well-being.