How Often Is Credit Information Updated?

When you are trying to secure financing, you want to make sure that your credit score is as high as possible. If you have recently paid off an account or done something else that could help your score, you may be anxious for the changes to take effect. The time that it takes to update your report can vary from one situation to the next.

Credit Score Calculation

Your credit score is a number calculated from a formula that looks at every area of your credit report. When your credit report changes, so does your credit score. The score is calculated almost instantly when something on your credit report is added or removed. When you do something that could affect your credit, it does not hit your credit report instantly. The amount of time between the action and the change on your report can vary, depending on which creditor you are working with.

Creditor Impact

The main factor that plays a role in determining when your score changes is the creditor that you are dealing with. If you make a payment to a large creditor, such as a credit card company, the information will most likely be reported to the credit bureaus at the beginning of the following month. If you make a payment to a small creditor like a local bank, the information may not go on your report until the start of the next quarter.

Planning Ahead

Because of this lag time between the actions you take and the update in your credit report, you should plan ahead when you know you will need to apply for financing. For example, if you know that you will be shopping for a mortgage in the near future, you need to go ahead and pay down the balances on your accounts early. Give yourself two or three months just to make sure that you have plenty of time to see a change.

Get the Job Done Faster

While under normal circumstances, you should expect a month or more to elapse before your credit report is updated, a service called rapid re-scoring could get it done faster. This is a service that is offered when you work with a mortgage company or other lender. You pay a one-time fee, and the rapid re-scoring service can get your score changed for you. It can make sure that information is updated and correct for you within 72 hours.