How Often Does Your Credit Report Change?

Written by , December 7, 2012

How Often Does Your Credit Report ChangeYour credit report – and the credit score that’s calculated based on the information on your credit report – plays a significant role in determining how much you’ll have to pay in interest charges whenever you take out a loan. In fact, your credit report will likely be the primary factor in a lender’s determination of whether or not to make a loan to you in the first place.

It’s important to understand that your credit report is a living and breathing document. Many different things you do will impact your credit report, and your report will change based on your activities. So just how often will your credit report be updated?

Here is some credit card advice on some of the situations that can cause your credit report to be changed.

  • Change Happens Frequently. In general, your credit reports will change whenever new information is available, and that information gets reported to one or more of the credit agencies. If you already have a home mortgage, car loan or credit card, then your report is likely to be updated on a monthly basis – in general, lenders will automatically report to the credit agencies whenever you make a timely payment or a late payment on your account.
  • Making Corrections. While the information flow lenders and credit card companies to the credit reporting agencies is generally reliable, mistakes and errors do occur. Unfortunately, it’s your responsibility to discover these errors and make sure they are corrected as soon as possible. For example, if just one or two of your accounts mistakenly reports that you’ve made late payments at some point during the past 12 months, this error could end up costing you a lot of money the next time you apply for credit. Depending on the nature of the error, and the identity of the reporting entity, it might take up to a month or two before your credit report is updated.
  • New Inquiries and Credit Requests. Your credit report includes information about all the instances where a credit card company or other company has requested a copy of your report. This most often occurs when you request a new extension of credit – whether it’s a new credit card, or when you apply for a new home mortgage or car loan.
  • Non-Financial Information. Remember that your credit reports contain more than just information about your credit cards, home loans, car loans and student loans. Your credit reports also include information about your employment history, as well as a list of your previous residences. Every time you change your job, or move into a new home or apartment, you can expect an update to your credit report.
  • Credit Score Changes. Finally, it’s worth keeping in mind that your credit reports form the basis for your credit score, so changes to your credit score are going to mirror the changes to your underlying credit reports.
  • Your credit report plays a major role in your personal finances. The more you understand about how your credit report works, and how often it gets updated, the better you’ll be able to manage your report.

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