When a lender asks you to submit your credit score from a credit bureau, it is your score that will be a direct reflection of your credit report. However, what most people do not know is that their credit report does not necessarily stand still for a long period of time. In other words, it gets updated regularly. And when it does, it gives you a different credit score.
It is important to know how often your credit report gets updated, most especially if you are looking to improve your credit. In some cases, though, having such information lets you review specific changes in your credit habits. Having the ability to predict how a credit report will change is always an advantage for people who understand the significance of having good credit. Likewise, it is essential in increasing the chances of getting approved for a major loan.
When Can You Expect Your Credit Report To Be Updated?
Apparently, though, there is no definite answer as to how often creditors update people’s credit report. After all, the credit bureaus do not necessarily obligate them to report it. However, when they decide to report on your account activity, expect them to present accurate and substantial information. It is one that is within the credit reporting time limits.
For starters, creditors that tend to report to credit bureaus are fond of continuously updating a person’s information. It has been their process since day one. As such, you can expect your credit report to be updated regularly, along with your current credit score. Keep in mind, though, that this does not mean your accounts are being updated on a daily basis. Again, there is no definitive answer. But one thing is for sure: businesses you have accounts with will definitely report to credit bureaus, and this could happen at different times.
Moreover, updates on your credit report do not take too long to arrive. And since almost all credit information is updated and sent electronically, the overall process is much quicker than in the past. As a result, you can see your credit report immediately.
It is worth noting that while the credit report can be updated daily, the process can sometimes take weeks or even months. This is especially the case with credit monitoring tools (if you are using any of them). When viewing your credit score or report on a certain service, it is very likely for you to see updates as often as the service allows them to happen. This also means that you will not see any changes in your credit report if no information is changed and/or updated.
Types Of Information Reported
Credit bureaus are expected to gather an array of information pertaining to your credit accounts. In a nutshell, they report all necessary data elements according to what is deemed required by the guidelines of the Consumer Data Industry Association. This includes, but not limited to, credit limit, balance, and delinquency.
Fortunately, it is not all bad with delinquencies or other negative factors. That is because time limits are placed and meant for how long they can stay on your credit report. Once this limit expires, they are automatically removed from your credit report.
When Will Credit Report Updates Show in Your Credit Score?
As soon as the above-mentioned changes are updated on your credit report, they are immediately factored into your specific credit score. So the next time you check your credit score, you will see those updates to be there. Keep in mind, though, that this does not mean that all credit report updates will essentially move your credit scores. It does not work that way and it really depends on the information updated.
When Do Businesses Report To Credit Bureaus
A general rule of thumb for credit card issuers is to update an individual’s credit report information on his/her account statement closing date. This normally refers to the very last day of your billing cycle. If you want to check the most recent account statement closing date, you can do so on a copy provided of your last billing statement. It is important to do this every now and then, so you can verify when exactly that certain account is going to be updated on your credit report. From there, simply add the number of days found in your billing cycle to that said date in order to pinpoint your upcoming account statement closing date.
Let’s go with an example, so you can have a better understanding. For instance, your last billing cycle was 29 days long and it closed on April 15. You can expect your resulting account statement closing date to be on May 13.
As for those inquiries you make when going for credit applications or businesses, they are updated right away. Let’s say you check your credit report right after you make a new application. The inquiry you just made for that will be there immediately. This one right here is important to keep in mind, as future applications are likely to be denied if there are too many recent inquiries listed.