When an individual is working on building or rebuilding their credit, it is only natural that they will want to see updates on their report. This is why people often ask us the question “How often do credit reports update?” Unfortunately, there is no easy or singular way to answer this question. It will take some further explanation to really understand how and when credit reports update. Our skilled Louisville bankruptcy attorneys at O’Bryan Law Offices will use this post to answer your question: How often do credit reports update? among other questions. If you seek more information regarding your finances, contact one of our Kentucky or Indiana offices today.
What is a credit report?
You probably hear mentions of credit reports often, perhaps in the jingle of a commercial or in a pop-up ad on your search engine. While mentions of credit reports are seemingly everywhere, you may not be entirely familiar with what it means. A credit report is a financial statement that includes information regarding your credit history and current credit situation. It may include your history of loans as well as the status of your credit accounts.
Creditors such as lenders, credit card companies, or other commercial entities will submit your financial data to consumer reporting agencies. These agencies may otherwise be known as credit bureaus. Credit reports help other lenders decide whether they can trust you enough to loan you money and if so, what interest rates they will offer you. Lenders will also look to your credit report to see if you are continuing to meet the terms of a current loan or credit account.
Other people or entities that might refer to your credit report include insurance providers, landlords, TV or internet providers, cell phone providers, or potential employers. If you allow an employer access to your credit report, it may be the determining factor for whether they hire you or not.
Information found in a credit report includes the following:
- Your name (and any name used previously in connection with your credit accounts, including nicknames and maiden names)
- Current and previous addresses
- Date of birth
- Social Security number
- Phone number(s)
- Current and previous credit accounts (including mortgages, installments, revolving, etc.)
- Credit limit
- Account balance
- Account payment history
- The date the account was opened and closed
- Name of the creditor
- Civil suits and judgments
In addition to the personal and public information provided above, one may also see what other companies have accessed the credit report within the past two years.
How do I check my credit score?
Fortunately, checking your credit report does not impact your score at all. Even better, you’re entitled to a free copy of your report once a year from each of the three nationwide credit reporting companies. These companies are Equifax, TransUnion, and Experian.
To check your score, you must be able to provide your name, address, Social Security number and date of birth to confirm your identity. You can order your free credit report online at annualcreditreport.com or call 1-877-322-8228.
How often does your credit score update?
Credit scores are merely a snapshot in time. They change from day-to-day, sometimes even hour-to-hour. This is because different information is constantly being added to and removed from your credit history, which directly affects your credit score.
Each credit account you currently own more than likely has a different due date. Consider the payment cycle for things like your car, credit cards, and personal loans. Because the due dates for these accounts often scatter throughout the month, the information that impacts your credit score updates at different times.
Credit bureaus do not require creditors to submit financial information by a certain date each month. Thus, credit report cycles are not tied to a lender’s billing cycle in any way.
In conclusion, credit reports and scores are constantly in flux. The best estimate we can give for how often your credit report updates is somewhere between 30 to 45 days.
What is a good credit score?
A credit score appears as a three-digit number. The numbers, generally ranging from 300 to 850, analyze your credit file. This number is incredibly important, as it informs lenders of your potential financial risk as well as your ability to pay back debts. A credit score takes into account a number of factors, including payment history and length of credit history.
This magic number may vary based on the model used (generally FICO or VantageScore) and the credit bureau that actually pulls the score. FICO and VantageScore are fairly similar to one another, but FICO seems to take preference as it gets used in over 90% of lending decisions in the United States.
The range of credit scores, 300-850, spans from very bad to exceptionally good. We’ll break down how your credit score might rate based on the range of numbers it falls into:
When someone is filing for bankruptcy, one of their main concerns is typically how the claim will affect their credit score. It is true that while bankruptcy can certainly impact your credit score, it can also be the quickest way to improve it.
For example, someone who doesn’t file for bankruptcy might continuously be behind in payments and have an ever-increasing amount of debt without the ability to catch up. In this case, their credit score will continue to take hit after hit with no means for improvement. By filing for bankruptcy, a reduced debt load will eventually be able to help that person get their finances back on track. Having a strategy for making loan and credit payments on time will significantly reduce their debt-to-income ratio and rebuild their credit.
However, depending on the chapter filed, the bankruptcy must remain public record for a certain period of time. Even after debts have been paid off and the credit is rebuilt, a bankruptcy claim will remain on a person’s credit report for either 7 or 10 years. If you file for Chapter 7 bankruptcy in Kentucky or Indiana, for example, the record will remain on your credit report for 10 years due to the fact that little or none of the debt is repaid. Meanwhile, because filing for Chapter 13 bankruptcy requires at least a partial repayment of your debts, it will remain for 7 years from the filing date.
For More Questions, Contact O’Bryan Law Offices Today
Having an experienced attorney on your side can help you to navigate the burden of low credit scores, bankruptcy, and debt relief in a number of ways. A trusted lawyer, such as the legal team here at O’Bryan Law Offices, will go beyond the courtroom to help you rebuild your credit. We do this by providing sound legal support, advice, and guidance. In addition, we work to help our clients maintain their financial independence by offering resources to help improve their credit score. If you have any more questions like How often do credit reports update? and would like to speak with one of our knowledgeable attorneys, contact us today. You can call our main office at 502-400-4020 or fill out our online intake form here to schedule your free consultation.