How Often Does Credit Score Change?
Your credit score isn't static. Learn how new financial activity and lender reporting influence when and why your score fluctuates.
A credit score serves as a numerical representation of an individual’s creditworthiness, typically ranging from 300 to 850. This three-digit number plays a significant role in personal finance, influencing access to loans, credit cards, and even housing or utility services. It provides lenders with a quick assessment of the likelihood that a borrower will repay their obligations. This score is not static; it is a dynamic figure that reflects ongoing financial behavior and reported data.
Factors That Influence Credit Score Changes
Several financial activities and behaviors can cause a credit score to change, reflecting an individual’s credit management. Payment history carries the most weight, accounting for 35% of a FICO Score. Late payments, collections, or bankruptcies can severely impact this component. The amounts owed, also known as credit utilization, represent approximately 30% of the score. This factor considers the proportion of available credit being used, with lower utilization leading to better scores.
The length of credit history contributes around 15% to the score, valuing the age of accounts. Keeping older accounts open can help maintain a longer average credit age. New credit accounts for about 10% of the score. Multiple new credit inquiries in a short period can signal higher risk to lenders. Finally, the credit mix, or the variety of credit accounts like credit cards and installment loans, makes up the remaining 10%.
How Lenders Report Information
Most lenders and creditors report account activity and payment information to the major credit bureaus—Experian, Equifax, and TransUnion—on a monthly basis. This reporting occurs shortly after an account’s statement closing date. While monthly reporting is common, the exact day can vary for each provider.
Credit reporting is voluntary, and not all lenders report to all three credit bureaus; some may report to only one or two, or none. While monthly is standard, some types of loans might have less frequent reporting, such as quarterly. Conversely, significant events like opening a new account or a major delinquency may be reported more immediately.
How Credit Scores Are Updated
Credit scores are dynamic and can change whenever new information is reported to the credit bureaus. While lenders often report data monthly, the score is not updated daily. A score recalculates when a credit bureau receives updated information from a lender using their specific scoring model, such as FICO or VantageScore.
Due to the varying reporting schedules of different creditors, your credit score can fluctuate frequently, potentially even weekly or daily. For most individuals, significant score changes align with the monthly reporting cycles. Different scoring models or versions of scores may also update at slightly different rates or emphasize different data points, leading to variations across bureaus or services.
Monitoring Your Credit Score
Regularly checking your credit score helps observe changes and maintain financial awareness. Many banks, credit card companies, and financial apps offer free credit score services, providing convenient access to your score. These services update your score regularly and include alerts for significant account activity.
You can also access your free annual credit report from each of the three major credit bureaus by visiting AnnualCreditReport.com. Reviewing these reports helps verify the underlying data that influences your score and identify any potential errors. Checking your own credit score or report through these services results in a “soft inquiry,” which does not negatively impact your score. In contrast, a “hard inquiry” occurs when you apply for new credit and can temporarily lower your score. Setting up alerts through monitoring services can notify you promptly of changes, such as new accounts or inquiries.