Why Does My Credit Score Fluctuate in a 60 Day Period?

Subtle changes in your overall credit report will cause your credit score to fluctuate. Creditors are required to report changes to your account every 30 days, and sometimes it takes up to 60 days for your score to reflect those changes.

Significance

Your credit score is an indicator to any lending agency of the likelihood that you will repay debt; the higher the credit score, the better the odds of repayment. The goal for the consumer is to have the highest credit score possible.

Function

The credit score is a numerical representation of the information contained in your credit report. Any time a change is made in the information listed on the report, the number is affected. However, for a large change to be made in the score, there must be a significant change in the report itself.

Misconceptions

Many consumers assume that on-time payment of bills automatically results in a high credit score. This is not necessarily true. Factors such as length of time since most recent account opening, balance versus available credit, and number of trade lines can all negatively or positively affect a score.

Considerations

If a large change has been made to your credit history, such as the payment of a debt in full, it can take more than 30 days to reflect on your credit report and score. The lending institutions are required to notify the credit bureaus once a month, and the scores are updated once a month. However, if the timing of the notification happens after the score has been updated that month, the score will not be updated until the following month.

Prevention/Solution

Keep a constant watch on your credit, and try to rectify any errors as soon as possible. Be responsible in your credit choices, and keep your credit card balances low to keep the highest scores possible.