When Does Your Credit Score Get Updated?
Credit scores aren't static. Uncover the mechanisms and timelines behind how your financial data influences your score's evolution.
A credit score is a numerical representation of an individual’s creditworthiness. It helps lenders assess the risk associated with extending credit, influencing decisions on loans, credit cards, and even housing applications. Credit scores are dynamic, reflecting an individual’s ongoing financial behavior and credit management practices over time.
Sources of Information for Your Credit Report
Credit reports compile data from various financial accounts and public records. These reports include information from credit cards, mortgages, auto loans, and student loans. Creditors are the primary entities that furnish this account information to the major credit bureaus: Experian, Equifax, and TransUnion.
Beyond traditional credit accounts, public records like bankruptcies also contribute to the data on a credit report. Collection agencies may also report information if an account becomes severely delinquent. While reporting is voluntary for lenders, most major financial institutions choose to provide this data to credit bureaus.
How Often Information is Reported
Lenders typically report new information to the three major credit bureaus at least once a month. This reporting usually occurs after the monthly billing cycle closes for accounts like credit cards. The data transmitted includes payment history and current account balances.
While monthly reporting is a common practice, the exact day of the month can vary for each provider. Some lenders might update more frequently, or immediately for significant events like opening a new account or a severe delinquency. However, a payment generally needs to be at least 30 days past due before it can be reported as late.
When Credit Scores are Calculated
Credit scores are re-calculated whenever new information is added to a credit report. Since lenders typically report account activity monthly, credit scores can update at least once a month as new data arrives. A significant change in underlying data, such as a large payment, opening a new account, or a missed payment, can trigger a score recalculation.
The timing depends on when new information from various lenders hits an individual’s report. Because different creditors report on different schedules, new information may be added to credit reports frequently. While scores can fluctuate with new data, major scoring models like FICO and VantageScore will recalculate scores based on the most current information available in the credit file at the time a score is requested.
Monitoring Your Credit Score Updates
Individuals can monitor their credit score updates. Free weekly access to credit reports from credit bureaus is available through AnnualCreditReport.com. This online portal is the only authorized source for these free reports.
Many credit card companies and banks also offer free access to credit scores, often updated monthly. Reputable third-party credit monitoring services provide regular score updates and alerts. Checking your own credit score through these services does not negatively impact your score.