If you’re looking to qualify for a new credit card or home or car loan, you’ll likely want to make sure your credit is in the best shape possible. But knowing when the right time to apply might rely on when your credit score changes. And that could happen at any time. Knowing when the Credit Score System gets updated can help.
“The short answer can be that it happens each time your credit score is calculated. Whenever an inquiry is made into your credit report,” writes Experian. But that doesn’t mean your score is changing from second to second.
Most creditors report balances each month. Creditors typically report new information like new balances or payment activity to the credit bureaus every 30 days. But the frequency of updates can vary by creditor.
Since credit report information isn’t received from creditors directly. It’s hard to tell when a specific creditor will update your information. But by checking in regularly to your credit report, you can keep track of updates and keep your eye out for errors at the same time.
Paying off your debts is the most important step in reestablishing your credit history. Lenders, including credit card providers, usually update your account information once a month. For that reason, it’s suggested by credit bureaus that you allow a minimum of 30 and up to 45 days for the account information to be reported.
Lenders report both positive and negative information to the credit bureaus once per month. So your credit scores can change a bit each month, depending on the information that’s landing on your credit reports.