When Does Experian Update Credit Scores?
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Summary:
Experian updates credit scores and reports monthly, with lenders and data reporters sending information at varying intervals. Beyond creditor updates, other factors such as inquiries, collection accounts, and bankruptcy filings contribute to score changes. Understanding the timing and reporting of credit information is vital for managing credit health and improving credit scores over time.
Credit scores and reports play a pivotal role in financial health, influencing everything from loan approvals to interest rates. By understanding how often Experian updates credit scores and the factors influencing these updates, you can better manage your financial well-being. Let’s delve into the intricacies of credit report updates and their implications.
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When are credit scores updated?
Lenders, credit card issuers, and other data reporters usually update your credit information at the three major credit bureaus — Experian, TransUnion, and Equifax — at least once a month. The frequency of updates varies among reporters as well as the bureaus, which is why you’ll notice that each of your reports might have a different score, explains Michael Broughton, founder and CEO of Altro.
When do creditors update accounts?
Each creditor updates credit bureaus on different days or weeks of the month. Consequently, your credit report may change from day to day due to multiple creditors updating information based on their own schedules.
For instance, if you have multiple accounts, each may update the bureaus at different times. Consider the following example:
- Your credit card account reports to Experian on the first, to TransUnion on the 10th, and to Equifax on the 20th of each month.
- Your car loan lender reports to Experian on the seventh, to TransUnion on the 15th, and to Equifax on the 24th of each month.
- Your student loan lender reports to Experian on the eighth, to TransUnion on the first, and to Equifax on the 15th of each month.
In this example, each credit report could change three times a month due to the differences in reporting schedules.
Other information updated on your credit reports
Besides payment and balance updates, other factors contribute to changes in your credit reports:
- Hard inquiries: Requests for credit report viewing for loan or credit applications
- Soft inquiries: Credit information requests unrelated to credit applications (soft inquiries are not visible to creditors, and so do not affect your credit scores)
- Collection accounts: Entries for unpaid debts turned over to collection agencies
- Bankruptcy filings: Entries for bankruptcy protection petitions
How long does information stay on my credit report?
Entries on credit reports have different expiration dates:
- Negative entries — including late payments, defaults, collections, foreclosures, repossessions, and certain bankruptcies — expire after seven years.
- Chapter 7 bankruptcy remains for ten years.
- Hard inquiries typically stay on your report for two years.
- Positive entries and accounts closed in good standing persist for ten years.
How often should I check my credit reports?
It’s always a good idea to check your credit reports regularly. Daniel Cohen, founding partner of Consumer Attorneys, suggests you take a look at least every year. That said, once a month is even better, particularly because mistakes do happen and you’ll want to take care of them as soon as possible.
Cohen goes on to explain some of the issues that can show up on your credit reports:
“Among the more common errors are mixed credit reports (your data is co-mingled with someone else’s data), false deceased designations (which can start or end at the Social Security Administration), fraudulent account and debt information resulting from identity theft, and general errors in personal and account information (like reporting a debt or line of credit as open and unpaid, when in fact it is paid in full and closed).”
Pro Tip
“If you do notice any errors or suspicious activity in your credit report, dispute it. The FCRA obligates the credit bureaus to investigate and correct errors. If they don’t timely or adequately live up to this obligation, you should reach out to a consumer protection attorney. Similarly, if a credit bureau informs you that an investigation confirmed that the disputed data is accurate, but you know that it’s not, a lawyer can help you.” — Daniel Cohen, Consumer Attorneys
Key Takeaways
- Experian typically updates credit scores and reports monthly.
- Creditors update accounts on varying schedules, leading to frequent changes in credit reports.
- Other factors such as inquiries, collection accounts, and bankruptcy filings also contribute to credit report updates.
- Check your reports once a month to monitor and manage your credit health and improve your credit scores.
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