When Does Discover Report to Credit Bureaus?
EG
Summary:
Like most credit card companies, Discover reports to the credit bureaus just after your statement closing date each month. The good news is that you can use that information to boost your credit score.
Credit scores can be a bit of a mystery sometimes. We know they’re important, and we know they’re generally related to how responsibly we use debt, but the smaller details can be difficult to keep track of. And the complicated credit scoring system we have only becomes more frustrating when you’re trying to boost your credit score. It often seems that one month you’re making progress, and the next month you see your credit score plummet 10 points.
One thing that can help you boost your credit score is knowing the date your credit card issuer reports to the credit bureaus. In this article, we’ll share how credit reporting works, when Discover reports to the credit bureaus, as well as why this information is important, and how you can use it to your advantage.
Compare Credit Cards
Compare the rates, fees, and rewards of leading credit cards.
How credit reporting works
Each month, credit card companies report their customers’ activity to the three credit bureaus: Experian, Equifax, and Transunion. The information they report includes your personal information, the type of account it is, your credit limit and current balance, your payment history, and your current account status.
Companies aren’t required to report information to the credit bureaus, but most credit card companies — including Discover — do. And if they do report, they generally must report accurate information.
Calculating your credit score
The information credit card companies report to the three credit bureaus is a part of your credit history and helps to make up your credit score. Your credit report and score collectively show future creditors how responsibly you use debt.
Credit bureaus use the following criteria to calculate your credit score based on the information they receive from credit card companies and other creditors:
- Payment history. Whether you make your monthly payments on time.
- Credit utilization. The percentage of your available credit you’re using at any given time.
- Length of credit history. The average length of your credit report, as well as your longest and shortest credit accounts.
- Credit mix. The types of credit that appear on your credit reports.
- New credit. Whether you’ve recently applied for or opened a new credit account.
Fortunately, you don’t have to calculate your own credit score changes, though it’s best practice to keep an eye on it. To quickly know when your score changes, you may want to consider using a credit monitoring service. Not only will these services let you know when something new appears on your credit report, but they’ll also offer advice to help you boost your credit score.
When does Discover report to credit bureaus?
Like other credit card issuers, Discover credit cards report your account activity to the three major credit bureaus monthly. Generally speaking, the company reports right after the statement closing date, meaning the last day of your billing cycle.
However, one credit bureau may update at a different speed than another bureau. This means your score may differ depending on the credit bureau you look up.
Pro Tip
Keep in mind that the statement’s closing date is different from your payment due date. In Discover’s case, the statement closing date is about 25 days before the payment due date. For example, if your statement closes on the 10th of each month, then your payment would likely be due on the 5th of the following month.
If you aren’t sure of your statement closing date, you can find it on your most recent Discover bill.
The importance of knowing your credit card’s reporting date
It might not seem like the specific date that Discover reports to the credit bureaus is all that important, but it actually is. As we mentioned, one of the things Discover — along with other credit card companies — reports to the credit bureaus is your current credit card balance and your credit limit.
These two factors make up your credit utilization rate or the percentage of your available credit that you’re currently using. For example, if you have a credit limit of $10,000 and a balance of $2,500, you’ll have a credit utilization of 25%. Credit utilization of less than 30% will have the best impact on your credit score and be viewed the most favorably by lenders.
What if you pay off your card each month?
You might think that if you pay your credit card balances off in full each month, this won’t apply to you. After all, won’t credit card companies report a balance of $0 in that case?
Credit card companies report your balance as of your statement closing date, not your payment due date. So if you use your credit card for all of your expenses throughout the month, your balance could actually be quite high on the statement closing date, even if you then pay off the full balance.
The credit bureaus can only work with the information they’re provided, so they assume whatever balance is reported to them is an accurate reflection of your credit situation.
How to time your credit card payment to boost your credit score
The good news is that once you know the date your credit card company reports to the credit bureaus, you can use that information to boost your credit score.
As we mentioned, your credit utilization is an important factor that makes up your credit score. And generally speaking, the lower your credit utilization, the better. As a result, it’s in your best interest to have as low a balance as possible on your statement closing date since that’s when Discover will report your balance.
Example:
Let’s say you have a credit card limit of $5,000. Throughout the month, you use your credit card for all of your expenses, adding up to about $2,500. As a result, Discover reports a $2,500 balance to the credit bureaus, which shows a credit utilization of 50%.
To improve your credit utilization — and, therefore, your credit score — you can simply change the day you make your credit card payment. Instead of making your payment on the due date, make your payment just before your statement closing date. That way, you’ll have as low of a balance as possible when Discover reports to the credit bureaus.
Pro Tip
Make sure to make your payment a few days before the statement closing date. That way, the payment has time to process before Discover reports your balance to the credit bureaus.
FAQs
What day of the month does Discover report to credit bureaus?
Discover usually reports to the credit bureaus just after the statement closing date. Check your latest credit card bill to learn when your statement closes.
How long does Discover take to post credit?
In some cases, Discover will post your payment the same day you make it. But if you pay your bill on a weekend or after the close of business, it might take longer to post.
Does the Discover it® card report to credit bureaus?
Discover reports all of its credit cards to the credit bureaus, including the Discover it® card.
Does Discover report your first missed payment?
Unfortunately, yes, Discover will report your first missed payment to the credit bureaus. Not only will you be on the hook for a late fee, but this will also negatively affect your credit score. But depending on your payment history, you may be able to request that they remove it.
Does Discover offer a checking account?
Discover Financial Services does offer checking accounts through Discover Bank, it’s subsidiary. By opening a Discover checking account, customers can enjoy various benefits, including no monthly maintenance fees, access to a vast network of over 60,000 ATMs across the country, and rewards for debit card transactions. Additionally, Discover provides convenient mobile banking and online bill payment services to cater to the needs of their checking account holders. Here is our review of Discover checking account
Key Takeaways
- Each month, credit card companies report your account information and payment history to the three major credit bureaus, Equifax, Experian, and Transunion.
- Discover usually reports to the credit bureaus just after your statement closing date, which is about 25 days before your payment due date.
- The date your credit card company reports to the credit bureaus is important since it influences what your credit utilization will be at that time.
- You can boost your credit score by paying off your credit card bill just before the statement closing date to ensure a low balance is being reported.
EG
Erin Gobler is a Wisconsin-based personal finance writer with experience writing about mortgages, investing, taxes, personal loans, and insurance. Her work has been published in major outlets, such as SuperMoney, Fox Business, and Time.com.
Share this post: