How Often Is My Credit Score Updated?
Victoria Araj3-minute read
October 15, 2022
So, you’re really making progress with paying off debts and disputing inaccurate items on your credit report. You want to see the fruits of your labor represented in your score. It’s easy to get anxious when you’re on a path to financial freedom or you want to make a major purchase such as a home or car. We all want to see immediate results. Below are a few tips to help ease the angst and know what to expect as you take steps to improve your credit.
How Often Does A Credit Score Update?
According to Rod Griffin, director of consumer education and awareness at Experian™, your credit score reflects the information lenders share from your credit report. As new information is reported regarding your credit history, your scores are updated to take that into account. If there is not new information reported, you guessed it – no update. Most lenders report to the credit bureaus monthly, so there is a 30-day cycle, but not necessarily the 1stof the month to the 30th. Creditors can send their reports any time of the month. Any new activity, positive or negative – opening an account, closing an account, paying off debt, etc. – is reported within that time and your score would then be calculated.
For example: If you pay a medical bill in full on the 29thof the month and the hospital’s reporting date is the 30thof each the month, you may see an update reflected in a few days. This is because you paid it close to the reporting date. If you were to make that same payment on the 1st, you will want to wait 30 days to check it again.
Here’s another tip – you can call your lender’s credit department and ask which day of the month they report to the credit bureaus. This will help you plan your payments.
How Quickly Are Credit Inquiries Reported?
Credit inquiries are added instantly. If you go to Bank A and apply for credit and the next day go to Bank B and apply, they’ll see the previous application. There are two types of credit inquiries: soft inquiry and hard inquiry. Soft inquiries do not affect your credit much, these are routine credit checks that are generally done by your current lenders to ensure you are still in good standing. Hard inquiries do have an impact as this is when you are actively seeking credit for purchases such as a credit card, home, car, furniture, etc.
Paid Accounts But Don’t See A Change in Score?
There are a lot of factors that go into calculating your score. There could be several reasons you don’t see a change:
- The new information has not yet been reported.
- There may be other changes in your credit history that are offsetting the positive steps, such as other outstanding debt affecting your debt-to-income ratio.
- You may have had other items go into collection.
Also remember that it’s at the lender’s discretion when and if they report changes to your credit history. Lenders that have a lot of borrowers may stagger the dates when they report, doing so in batches versus all at once. Though most updates are made within 30 days, if you haven’t seen a change in 60 days, review your credit report to determine why. If you are expecting a change and planning to apply for new credit, get a report first to make sure the updates are reflected. You can use Rocket HomesSM to check on your status and get a credit report, or visit our credit and personal finance pages for more informative articles.
If you’re buying a home and have paid off or disputed debts that may help your score increase, your lender can request a rapid rescore on your behalf. You wouldn’t have to wait the normal amount of time and could determine if you’ll qualify for your purchase faster. Borrowers can’t request a rapid rescore on their own, but it’s good to know that this is an option.
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