When does a credit score update

You may want to know when credit scores update to keep track of the best time to apply for credit. But credit scores don’t have a set “update day”.

How Credit Scores Work

Your credit score is calculated based on the information in your credit reports (from Equifax, Experian, TransUnion). Understanding your credit reports can help when it comes knowing how frequently credit scores change.

The information used to update your credit scores comes from your lenders, credit card companies and banks that have extended credit to you.

Typically, your account activity is reported to the credit bureaus every 30-45 days. That activity can include updates to payments, balance changes (utilization), and more.

When does your credit score update?

Any information updated from your creditors to the credit bureaus, like payment amount, on-time payment or missed payment, has the potential to change your credit score. This information is vital for people looking to legally change their credit scores.

How often can a credit score change?

Your score might change multiple times a month depending on how often your lenders report and whether there are changes in your account activity.

Do all lenders report account activity?

Credit bureaus are private companies. There is no mandate that states your creditors must report to the credit bureaus any information at all. What the law says is if creditors do report account activity and information, that information must be accurate according the the federal Fair Credit Reporting Act.

Federal agencies like the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) ensure fair practices and consumer protection as well as offer consumers a complaint submission process.

Some smaller lenders might not report to all three credit bureaus, or may report less frequently.

Why you have different credit scores

Credit scores may vary across the different credit bureaus because credit card companies are not legally required to report to all three credit bureaus (Equifax, Experian, and TransUnion). Here’s why:

• Voluntary Reporting. Credit reporting is voluntary for lenders. They can choose whether or not to report, and if they do, which bureaus to report to.
• Costs Involved. Credit bureaus charge fees for lenders to report information. Some companies may opt to report to only one or two bureaus to control their costs.

The lack of uniformity can result in a consumer having an incomplete credit picture. If a credit card company only reports to one bureau, your other credit reports may not reflect that account or activity, leading to less accurate credit history.

There could be missed opportunities if positive credit behavior exists on just one or two credit bureau reports. Consumers can get free weekly credit reports from each of the major credit bureaus.

An unreported account won’t help build your credit history on the other bureaus.

Then there’s different credit scoring models (like FICO or VantageScore) that exist. And for many people the credit score produced under these two separate scoring models differs. In some instances, there can be a big difference in a consumer’s FICO Score vs. Vantage Score.

Final takeaway when it comes to your credit scores updating

• The typical update is 30 to 45 days but this frequency could vary depending on your lenders.
• It’s normal for your credit score to change based on your financial habits.
• Each lender decides if and when they will report account information as well as which of the credit bureaus they report to, if any.
• Always make sure you have positive accounts reporting if there’s primarily negative credit accounts reporting.
• Monitor your credit using paid services like myfico.com or free credit scores from credit card company and keep an eye on your credit reports for errors using weekly free credit reports.