Why Credit Scores Don’t Fluctuate Daily

A credit score is a numerical representation of an individual’s creditworthiness, used by lenders to assess risk when evaluating applications for loans, credit cards, or other financial products. Credit scores do not typically fluctuate on a daily basis. Instead, they are dynamic and change over time as new information is added to credit reports.

How Credit Scores are Updated

Credit scores are not updated daily because lenders do not report data to credit bureaus on a daily schedule. Lenders, including banks and credit card issuers, typically report account activity to the three major credit bureaus—Experian, Equifax, and TransUnion—once a month. This reporting usually aligns with an individual’s monthly billing cycle or statement date.

Credit scores are calculated based on data in an individual’s credit report at the time of calculation. A score changes only when new information is reported to the credit bureaus and a new calculation is triggered. The absence of daily reporting by most lenders means daily fluctuations are not a regular occurrence.

Key Factors Influencing Score Changes

Credit scores change in response to specific financial behaviors and reported credit data. Key factors influencing your score include:

Payment history: This is the most significant factor, accounting for approximately 35% of a FICO Score. Consistent on-time payments contribute positively, while missed or late payments can substantially lower a score.
Amount of debt owed (credit utilization): This makes up about 30% of a FICO Score. It considers the proportion of available credit being used, with lower utilization generally leading to a better score.
Length of credit history: This accounts for approximately 15% of the score, including the age of the oldest account and the average age of all accounts. A longer history of responsible credit management is generally viewed favorably.
New credit: This typically represents 10% of the calculation. Opening several new accounts or having multiple hard inquiries in a short period can negatively impact a score.
Mix of credit accounts: This makes up the remaining 10%. It includes revolving credit like credit cards and installment loans such as mortgages, demonstrating an ability to manage diverse types of credit.

Accessing and Monitoring Your Credit Score

Individuals can access their credit reports and scores to monitor their financial standing. Federal law grants access to a free credit report once every 12 months from each of the three major credit bureaus through AnnualCreditReport.com. Consumers can currently access these reports weekly, providing more frequent opportunities to review their credit history.

Many credit card companies and financial institutions provide free credit scores to their customers. These scores are frequently updated monthly and can be found through online account portals or on monthly statements. Regularly reviewing credit reports for accuracy and understanding the factors influencing score changes helps individuals manage their credit effectively.