How often does your credit get updated

Your credit score is an important metric to keep an eye on when you are thinking about taking out a personal loan or applying for a mortgage. This is because it helps lenders decide whether or not to lend to you and, sometimes, what rates to offer.

Over time, your credit score can change for a variety of different reasons and the time it takes for your credit score to update can vary.

In this article, we will be discussing the factors that can influence your credit score and how often you can expect your credit score to update.

Who calculates your credit score?

Your credit score is calculatedby credit reporting agencies (also known as credit bureaus) using the information found in your credit report.

The three main credit bureaus that exist in Australia are Experian, Equifax, and Illion.

Lenders, such as banks and utility companies, send your credit information to these credit bureaus, and a credit report is generated using the information that is provided.

Your credit report is a record of your credit history that shows how you've handled credit in the past, allowing lenders to assess your level of risk when you apply for credit. It also contains other information, such as your public record information, and whether or not you have a bankruptcy in your name.

It is important to keep in mind that your credit score can vary from one credit bureau to another. This is due to each credit bureau using its own scoring system and the fact that some lenders do not report to all credit bureaus.

What information goes on a credit report?

Your credit report provides details on your financial history over the past 5 to 10 years. This report includes both personal information and details of your credit history, such as:

Personal Information:

• Your full name
• Your date of birth
• Your address details
• Your contact information

Credit History:

• Credit applications
• Late or missed payments
• Loan defaults
• Bankruptcies

It is also important to note that any credit applications that have been made over the past five years will also be recorded on your credit report. These are also known as inquiries, and they come in two types: hard inquiries, and soft inquiries.

Hard inquiries are typically performed by lenders when you apply for a loan, credit card, or mortgage. These inquiries have the ability to negatively impact your credit score.

Soft inquiries happen during instances such as when you check your credit score, or when an employer checks your credit score as a type of background check. Unlike hard inquiries, soft inquiries will not impact your credit score.

For more information read: Understanding Credit Scores and Reports

How often do creditors report to bureaus?

In short, it depends.

Each creditor has their own procedure for when they report to bureaus. In general, you can expect a report to be made every 30 to 45 days.

It is not uncommon practice for creditors to send their reports to different credit bureaus at varying times. Furthermore, some credit providers may only report to some credit reporting agencies and not others.

This is why you should not be surprised if your credit score looks different from one credit bureau to another as there are multiple reasons why this could be the case.

How often do credit reports update?

You can expect your credit report to update when new information has been received by one of the credit reporting agencies.

ClearScore collects your new report from Experian once per month.

We update your report each month, depending on the day you signed up for a ClearScore account. For instance, if you signed up on the 8th, but your lender reports on the 20th, then you will have to wait for your next report for new accounts to appear and information on closed accounts to be updated.

This means that it can take between 4-6 weeks for new information to appear on your report. So if you’ve recently taken out a credit card, for example, it won’t show immediately on your report.

If you believe data might be more than 4-6 weeks out of date, you’ll need to raise a dispute.

How often does my credit score change?

Your credit score is calculated by algorithms that analyse the information documented on your credit report. Therefore, you can expect your credit score to change when an update has been made to your credit report.

As mentioned previously, you should expect your credit report to update at least once a month, which means your credit score will automatically adjust depending on the new information received.

How do I get free credit report and score?

ClearScore provides free credit reports for you to track your credit score and view your credit report anytime you want.

To get started, simply follow these 4 simple steps:

1. https://app.clearscore.com/signup

2. Enter your email address

3. Provide the following information: date of birth, residential address and some form of identification (driver’s license, passport, or Medicare card)