How Often Do Your Credit Scores Go Up?
Discover how credit scores update, what factors cause them to rise, and how to track your financial progress over time.
A credit score is a numerical representation of an individual’s creditworthiness, typically a three-digit number ranging from 300 to 850. Lenders utilize these scores to assess the likelihood of a borrower repaying debts on time. A higher score generally indicates a lower risk to lenders and can lead to more favorable terms for loans and other credit products. These scores are not static; they are dynamic measurements that can fluctuate based on ongoing financial activity and how that information is reflected in credit reports.
How Credit Scores Are Updated
Credit scores are dynamic calculations that change as new information becomes available in an individual’s credit report. The three major credit bureaus—Equifax, Experian, and TransUnion—receive updated financial information from lenders, such as banks and credit card companies, on a regular basis. This reporting typically occurs monthly, often within a 30-to-45-day cycle from the end of a billing period. Each creditor may have its own specific reporting schedule, meaning that updates can occur at different times throughout the month.
While lenders report data periodically, credit scores themselves are recalculated by various scoring models, like FICO and VantageScore, whenever new relevant data appears on a credit report. This means a score does not “go up” or “down” at a predetermined interval, but rather changes when the underlying information in the credit report is altered and a new calculation is performed. Consequently, if multiple creditors report updates at different times, an individual’s credit report and score can reflect changes continuously.
Key Factors Influencing Credit Score Movement
Several factors contribute to the calculation of credit scores, and positive changes in these areas can lead to an upward movement in an individual’s score. Payment history holds the most weight in credit scoring models, accounting for approximately 35% of a FICO Score and around 40% for some VantageScore models. Consistently making all payments on time demonstrates reliability and contributes to a higher score over time.
Credit utilization, which is the amount of revolving credit used compared to the total available credit, is a substantial factor. Keeping credit utilization low, generally below 30% of available credit, can positively impact a score, representing about 30% of a FICO Score and 20% of a VantageScore. Reducing outstanding balances relative to credit limits signals responsible credit management.
The length of an individual’s credit history also plays a part, typically making up around 15% of a FICO Score and a similar percentage for VantageScore models. A longer history of successfully managing credit accounts indicates a lower risk to lenders.
The variety of credit accounts an individual manages, known as credit mix, influences a score. Having a healthy combination of different credit types, such as installment loans (e.g., mortgages, auto loans) and revolving credit (e.g., credit cards), positively affects a score, accounting for about 10% of a FICO Score. This demonstrates the ability to handle various forms of debt responsibly.
New credit applications and recently opened accounts make up approximately 10% of a FICO Score. While applying for new credit can temporarily cause a dip due to a “hard inquiry,” responsible management of new accounts over time contributes to overall score improvement.
Accessing and Monitoring Your Credit Score
Individuals are entitled to access their credit information. Federal law grants consumers the right to obtain a free copy of their credit report annually from each of the three major credit bureaus—Equifax, Experian, and TransUnion. These reports can be requested through the official website, AnnualCreditReport.com, or by phone or mail. Accessing these reports allows individuals to review the underlying data that contributes to their credit score.
Beyond the annual free reports, many credit card companies, banks, and personal finance websites offer free access to credit scores. These services often provide updated scores monthly, allowing for continuous monitoring. Different sources may provide different scores, such as FICO Scores or VantageScores. This variation occurs because different scoring models use distinct algorithms and weighting factors, and not all creditors report information to every credit bureau simultaneously.