When you apply for new credit, you have no way of knowing which credit report the potential lender will pull, or when they will pull it. When you’re working to improve your credit score, you may be anxious for proof that you’re making progress and that your score is improving. A common question is, “How often do credit reports update?”
Credit Reports Updates
Each of your creditors reports to the credit bureau monthly, but they don’t necessarily send updates at the same time. When the credit bureaus receive new information, the report may not be immediately updated because they first process the information to validate it, which can take a few days. If something doesn’t look right, they’ll try to verify it before updating your report, so it may take longer than you think for information to be updated. Once new information is added, your credit score is updated as well.
How Creditors Report
Creditors are not required to report to all three credit bureaus, which means you have several different credit scores at any given time. Some creditors may report to all three of the major credit bureaus (Equifax, TransUnion, and Experian), while others may report to only one or two of them. If you want clear information about what may show on each report, ask your creditors how and when they report to the bureaus, and which ones they report to.
Information Gathered by Credit Bureaus
There’s a variety of information that’s collected by credit bureaus each month. This information includes your outstanding balance for each account, your credit limit on revolving accounts, and your payment history. One of the most important factors that impacts your credit score is your history of making payments on time. If you’ve paid any of your accounts late by more than 30 days, that information remains on your credit report for seven years. The negative impact of a late payment decreases over time.
Your credit utilization ratio is another big factor in your credit score. This ratio represents the percent of your credit limit on revolving accounts that you’re using. It’s best to keep your credit utilization under 30 percent of your available credit limit. Reduce your balance even more to help improve your score.
Checking Your Credit Reports
You are entitled to a free copy of each of your credit reports each year. The easiest way to obtain them is by going to AnnualCreditReport.com. At this time, moreover, you can request weekly reports. Weekly service began during the COVID-19 pandemic and has been extended through December 2022. Review your credit reports regularly to make sure there isn’t any inaccurate information. Errors in balance or payment history can affect your credit score, and wrong balances or accounts you don’t recognize may be a sign of fraud.
Dispute any errors you find immediately. Dovly is an automated credit repair engine that can help you work with the credit bureaus to get errors removed. Try it risk-free with our free membership tier. Contact Dovly today.