Updates to your credit report depend on several factors
You can now check your credit report for free every week if you choose. However, this doesn’t mean your payment history – or other information – is updated more frequently than when we were only allowed three free reports per year.
This can be frustrating, especially if you’re working hard to boost your credit score to qualify for better mortgage or auto loan rates. If you’re taking steps to improve your score – which ranges from 300 to 850 – it’s only natural to want to see the results of your efforts sooner rather than later.
How long does it take for credit reports to update?
Like so many things, there is no clear-cut answer. Credit reports are updated when lenders, such as credit card issuers, report payments to at least one of the three national credit reporting agencies: Equifax, Experian, or Transunion. And because lenders aren’t required to report to all three bureaus, you often have slightly different scores depending on the credit reporting agency issuing the number.
Update frequency
That said, credit reports are typically updated every 30 to 45 days, depending on the lender, according to Transunion. And because many people have more than one type of credit line, your credit report can potentially be updated multiple times a week, which can cause your score to fluctuate up or down as new information is provided.
Patience is still required
This means even if you pay off a large credit card debt or make the final payment on a loan, it can take at least a month – and sometimes longer – for that action to be reflected on your credit report and potentially your credit score.
Fortunately, there’s at least one other option available to credit unions, banks, and other lenders who are working with their customers to help them qualify for a loan or move the needle on their credit score promptly.
Consider rapid rescoring
“Rapid rescoring can be helpful if you’re applying for a time-sensitive credit product, like a mortgage, and if your credit score is near lender requirements for approval or you’re close to qualifying for better terms or rates,” explains Margaret Poe, head of Consumer Credit Education at Transunion.
How to rapid rescore
To take advantage of this option, a lender must request a rapid rescore on your behalf. Depending on the lender, this service may also be charged a fee.
“With a rapid rescore, your lender can request an updated credit score more quickly than normal,” Poe says. “This is important if you’ve recently made positive strides with debt that may benefit your credit score, like paying down a credit card balance.”
Be aware of other factors
It’s also important to know that other information reported by lenders can be considered when the rapid rescore is requested, not only positive information, Poe notes, adding:
“There is no guarantee of a positive credit score change, and a rapid rescore can’t make negative information on your credit report disappear.”
Financial habits for a healthy score
While you typically can’t force your credit report to update any faster than normal, there are specific steps you can take every month to stay on track with building – or maintaining – your credit score.
- Set up reminders to pay your bills on time so you don’t accrue late fees
- Try paying down credit cards so you’re using 30% or less of your total available credit
- Don’t close older accounts if you can help it
- Maintain a mix of different types of credit lines
- Apply for new credit only when it’s needed
The bottom line
Maintaining a solid credit score is more of a marathon than a sprint. You need to be in it for the long haul, consistently paying all your bills on time every month, using credit sparingly, hanging on to older accounts, and only applying for credit you really need. If you follow these healthy financial habits consistently, your score will begin to reflect those actions over time.