How Often Is Your Credit Score Updated?
Discover how often your credit score changes and the underlying processes that drive its updates. Understand its dynamic nature.
Credit scores serve as a dynamic indicator of an individual’s financial health, influencing access to loans, credit cards, and housing. These three-digit numbers are not static; they fluctuate based on financial activities reported by lenders. Understanding these changes is important for managing one’s financial standing.
How Credit Bureaus Update Scores
Credit scores are calculated by the three major credit bureaus: Experian, Equifax, and TransUnion. These bureaus receive data from lenders, banks, and credit card issuers, forming the basis of your credit report. Lenders typically report new information about accounts and payment activity every 30 to 45 days, often aligning with monthly billing cycles.
While data reporting usually occurs monthly, the exact day can vary significantly among creditors. This staggered reporting means information can be added to your credit reports, causing scores to fluctuate throughout the month. Scores can change multiple times within a month as new information is processed.
What Influences Credit Score Changes
Credit score changes result from new information reported to credit bureaus, reflecting various consumer actions and financial events. Paying bills on time consistently positively influences scores, as payment history accounts for a large portion of a credit score. Conversely, even one payment made 30 days or more past its due date can negatively impact scores.
The amount of debt owed, particularly credit utilization, also plays a large role. Maintaining low balances relative to available credit can improve scores, while high credit card balances can lower them. Opening new credit accounts can lead to a temporary dip due to hard inquiries. Closing old credit accounts can also negatively affect scores by shortening credit history and increasing credit utilization. Accounts going into collections can damage a credit score.
Accessing Your Updated Credit Score
While credit bureaus continuously process new data, how often consumers can view an updated credit score depends on the source. Many credit card issuers and banks offer free access to credit scores, often updated monthly or even daily. Services like Chase Credit Journey, Experian, and TransUnion provide free credit monitoring and score updates, sometimes daily.
Different scoring models (e.g., FICO Score, VantageScore) exist, and the score you see may vary between providers. Federal law allows consumers to obtain a free copy of their credit report from each of the three nationwide credit bureaus once every 12 months, accessible through AnnualCreditReport.com. However, some services offer weekly or even daily refreshes of your credit report and score.