How Often Is Your Credit Score Updated?
Discover how your credit score evolves. Learn when underlying data changes and how this impacts your financial standing.
A credit score is a three-digit number, typically ranging from 300 to 850, that assesses an individual’s creditworthiness by reflecting their likelihood of repaying borrowed money on time. Lenders use these scores to evaluate the risk of lending and to determine terms like interest rates and credit limits for financial products such as mortgages, auto loans, and credit cards.
Frequency of Credit Score Updates
Credit scores are dynamic and do not update on a fixed schedule. They are recalculated based on the most current information in your credit report, typically when a lender requests it or you actively check it. Lenders and creditors typically report new account activity and payment information to credit bureaus around once a month, often coinciding with billing cycles or statement dates. However, the exact day of the month for reporting can differ for each provider, and not all lenders report to all credit bureaus. Therefore, while scores usually update at least once a month, they can change more frequently depending on the number of accounts an individual has and the varying reporting schedules of their lenders.
Factors Triggering Credit Report Changes
Specific financial actions and events cause updates to appear on a credit report, which can then lead to a new credit score calculation. Payment activity is a significant factor, with on-time payments contributing positively and late payments, especially those 30 days or more past due, having a negative impact. A single missed payment can cause a score to drop, with the impact worsening for payments that are 60 or 90 days late.
Changes in account balances, such as increases or decreases in credit card balances or loan amounts, also trigger updates. When new credit accounts are opened, like credit cards, loans, or mortgages, this information is reported to the bureaus. Hard inquiries, which occur when an individual applies for new credit, also appear on a credit report and can temporarily affect a score. Public records, such as bankruptcies, also lead to credit report changes.
Credit Reporting Agencies and Data Flow
The United States has three major credit reporting agencies: Equifax, Experian, and TransUnion. These private companies serve as central repositories for consumer credit information. They collect and organize data related to an individual’s credit and financial history.
Lenders, including banks, credit card companies, auto lenders, and mortgage lenders, regularly report consumer payment and account activity to these bureaus. This reported data includes details like payment history, current balances, and credit limits. While lenders typically submit this information monthly, their individual reporting schedules can vary, leading to continuous changes in credit reports across the different bureaus.
Accessing Your Credit Information
Individuals can access their own credit report and score to view recent updates and monitor their financial health. Federal law grants everyone the right to receive a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months. This can be done by visiting the official website, AnnualCreditReport.com, which is authorized by the federal government. During the COVID-19 pandemic, access to free weekly credit reports from all three bureaus was temporarily offered and has since been made permanent through AnnualCreditReport.com.
Many credit card companies, banks, and personal finance applications also provide free access to credit scores, often a FICO Score or VantageScore, and sometimes even credit report monitoring services. Checking one’s own credit score or credit report through these methods is considered a “soft inquiry” and does not negatively affect the credit score. This regular monitoring can help identify any inaccuracies or potential signs of identity theft.