How Fast do Changes on a Credit Report Appear?

It can take 30 to 60 days for a borrower's credit report to be updated by the credit bureau. While the lenders have to send the credit bureaus updated information once a month, the credit bureaus may update the reports prior to the lender's update, delaying the information by 60 days.

Significance

A small change in a borrower's credit report, such as one late payment or an increase in one credit card balance, can have a significant change on a borrower's credit score.

Function

A borrower's credit report and score reflect his ability and willingness to repay debt. If a borrower is looking to procure new financing, he wants his credit score to be as high as possible.

Time Frame

Lenders and credit bureaus are legally required to update borrower's information once a month. However, if a borrower makes a change in his debt history after the report date, it could lengthen the time for the update to make it to his credit report.

Considerations

The lag time between activity and the effect on the credit report can be advantageous for borrower's shopping for new rates on more than one new loan. The less debt listed on the credit report, the better for most borrowers.

Misconceptions

The only line item that shows up on a borrower's credit report immediately is when a potential lender checks the borrower's credit. This can also immediately drop the borrower's score by a few points. No other information is updated in real time.