What Day Does Your FICO Score Update?

A FICO score is a numeric representation of an individual’s creditworthiness, typically ranging from 300 to 850. Lenders widely use this score to evaluate the risk associated with extending credit, influencing decisions on loan approvals, interest rates, and credit limits. A higher score generally indicates a lower credit risk, potentially leading to more favorable terms for borrowing.

How FICO Scores Change

There is no single day when all FICO scores update for every individual. FICO scores are dynamic, changing continuously as new information is reported to the three major credit bureaus: Equifax, Experian, and TransUnion. Creditors, such as banks and credit card companies, typically report account activity to these bureaus once a month. The specific reporting date varies among different lenders and individual accounts.

Once a credit bureau receives updated information, the FICO scoring models recalculate your score based on this new data. Your score can fluctuate throughout the month as different creditors report your activity. If you make a significant payment, your score may not reflect it immediately but will update shortly after the creditor reports the change, usually within 30 to 45 days.

Information That Impacts Your Score

FICO scores are calculated using various pieces of credit data found in your credit report, grouped into five primary categories, each with a specific weight.

Payment History (35%)

Consistently paying bills on time is crucial for maintaining a healthy score. Even a single payment delayed by 30 days or more can negatively impact it. Accounts sent to collections or bankruptcies can have severe and lasting consequences.

Amounts Owed (30%)

This factor assesses how much credit you are using compared to your available credit, often referred to as credit utilization. Maintaining low balances relative to your credit limits, ideally keeping utilization below 30%, can positively influence this portion of your score. Having a large amount of debt does not necessarily lead to a low score if your utilization remains low across your accounts.

Length of Credit History (15%)

This considers how long your credit accounts have been established, including the age of your oldest account, your newest account, and the average age of all your accounts. Generally, a longer credit history is viewed favorably. Accounts closed in good standing can remain on your report for up to 10 years, contributing to this history.

New Credit (10%)

This category evaluates recent credit applications and newly opened accounts. Applying for multiple new credit accounts in a short period can indicate increased risk and may temporarily lower your score. Each hard inquiry, which occurs when you apply for new credit, can slightly reduce your score for a short period, typically up to six months.

Credit Mix (10%)

This factor assesses the variety of credit accounts you manage, such as installment loans (like mortgages or car loans) and revolving credit (like credit cards). Demonstrating responsible management of different types of credit can show lenders a broader ability to handle financial obligations.

Checking Your FICO Score

Many banks and credit card companies offer free FICO scores to their cardholders as a benefit. Some providers, like Discover, Chase, Bank of America, and American Express, provide monthly FICO scores, often based on data from a specific credit bureau. These programs are generally free for eligible customers and allow you to monitor your score without impacting it.

You can also obtain your FICO score directly from myFICO.com, the consumer division of Fair Isaac Corporation, which created the FICO score. This platform offers various subscription plans, including options for one-time reports or monthly monitoring, providing scores from all three major credit bureaus. While these services typically involve a fee, they can offer detailed insights and multiple versions of your FICO score, including industry-specific scores used for mortgages or auto loans.

Not all credit scores are FICO scores. Many free credit monitoring services provide “educational scores” or scores from alternative models like VantageScore. While these educational scores can provide a general idea of your credit standing, they may differ from the FICO scores that most lenders use for their decisions. FICO scores are utilized by approximately 90% of top US lenders. When checking your score, the number you see reflects the most recent data available to the reporting agency.