Here we will discuss when credit card companies make the reports to the major credit bureaus and the impact that this can have on your life. It is very important that you understand this so please read every word of this short article.
Timing of different Credit Card Issuers reporting to the Credit Agencies
Credit card issuers usually report to the top credit agencies once per month. You may find that they will only report to a couple of the top credit agencies rather than all three of them. We cannot provide you with exact dates here as these are likely to vary with different accounts and your terms of payment. But normally credit card issuers report your activities a few days after the end of your statement period.
How regularly do they update Credit Reports and Credit Scores?
It is usual for a credit report to undergo a monthly update. The new information will be included in the next calculation of your credit score.
A credit score is normally recalculated when a lender accesses it. They use a proprietary formula on the information from one of your credit reports to arrive at the score. The most common formulas come from VantageScore and FICO.
It is possible for your credit score to change a number of times a day due to the updating of your credit reports.
Your final credit score depends on:
- The scoring formula applied. Both VantageScore and FICO take many of the same factors into account but the weighting factors they use are slightly different.
- The credit agency that supplied the credit report details. Not every creditor will report to all 3 of the major bureaus, meaning that your credit report varies with each one.
- The use for the credit score such as a car loan, a credit card or a mortgage for example. Usually credit scores have a range of 300 to 850 but it is possible for specialty scores to use a different range.
Why it is important for you to know about the updating process
Credit card issuers will report any late payments to the major credit reporting bureaus when their billing cycle has ended. Your payment history is important as it usually represents around 35% of your credit score. So making your payments on time is essential.
Creditors that normally report monthly
Credit unions, finance companies, banks and other institutions that issue credit cards or provide personal loans, mortgages, student loans, car loans and so on.
Credit card issuers that are not banks such as Discover, Diners Club and American Express.
Department stores that issue credit cards.
Gas and oil companies that issue credit cards.
Other credit institutions that receive installment payments on a monthly basis.
We are here to help you with your credit issues. Contact us here and our experienced team will be delighted to assist you.