When Do Credit Bureaus Update?

Consumer information on credit reports is often misunderstood. Consumers each year are allowed to review a free copy of their report. Understanding the complicated numbers, trade lines and symbols on the reports can be challenging. Similarly, consumers should know when and how debts and accounts are listed on their reports. Understanding when credit bureaus update accounts can be helpful.

Time Frame

Credit bureaus are required to update information on a consumer's report as soon as they receive it. It is the responsibility of each individual creditor to send updated account information to the three credit bureaus in a timely fashion. In most cases, creditors send all updates to their accounts by the last day of the month.

Reasons

The federal FACT Act of 2003 mandates stricter reporting requirements for all three major credit bureaus--TransUnion, Experian and Equifax. In addition to other new laws regarding consumer access to credit reports, the FACT Act requires that the most updated information be posted to credit bureaus so consumers have an accurate and current picture of their financial health as soon as it's available.

Availability

Another provision in the FACT Act gives greater access to credit reports for consumers. The law mandates that each citizen can receive one free copy of his credit report each year. Consumers can check the most recent updates at the end of each month. Missing updates and reports on bureaus should be investigated at the creditor level, not the credit-bureau level.

Application

Consistent and immediate updates required by the FACT Act help increase consumer protection. Formerly, it was immensely difficult for consumers to verify accounts, check for fraudulent activity and dispute charges. Some consumers experienced severe economic hardships due to judgments and covert collection activity on their reports. With constant updates and freer access to reports, the FACT Act gives consumers a stronger grip on their finances.

Warning

With legislation granting greater access to credit bureaus, some companies have cashed in. Several online sites promise free looks at credit reports only to disguise fees and monthly charges in the application. A government-established site, AnnualCreditReport.com, provides completely free credit reports.