How Often Does Your Credit Score Change?
We get asked this question quite often. Technically, it can change any point your credit report changes. Any of the following can trigger a credit score change:
- Missing a Payment
- Applying for a New Loan or Credit Card
- Changing Your Available Credit
- Defaulting on a Loan or Charging Off
- Bankruptcy
- The List Goes On……
But some people have asked why their score has not changed in months. Well, my score hasn’t changed since we launched the service in Feb, 2008 until just this week. As background:
* I have a mortgage
* I don’t carry any balance on my credit cards
* I’ve had a good payment history for over 15 years
* I don’t apply for credit often
A few days ago, I decided to apply for one of the Gas credit cards I wrote about. I then updated my credit score the next day. My score dropped 6 points from the inquiry. I’m sure it will change again when the credit card provider reports my credit line and utilization to the bureaus. I suspect it will jump back up since I won’t carry a balance and it will increase my total available credit.
I’m writing this to let users know that your score shouldn’t be constantly changing if you are stable with your finances and credit. I’ve had the same score for over 3 months so don’t be concerned if your score isn’t jumping around. Part of the service is built to instill a sense of comfort and familiarity with your score.
[...] Credit Repair Advice wrote an interesting post today onHere’s a quick excerptHow Often Does Your Credit Score Change? Written by Kenneth Lin May 16th, 2008 at 11:09 AM CDT No comments We get asked this question quite often. Technically, it can change any point your credit report changes. Any of the following can trigger a credit score change: Missing a Payment Applying for a New Loan or Credit Card Changing Your Available Credit Defaulting on a Loan or Charging Off Bankruptcy The List Goes On…… But some people have asked why their score has not changed in months. [...]
What is so amazing to me is that none of this was taught in high school. What you are doing here is so very valuable.
Your credit rating is a major factor in determining the financial choices you have in life yet we don’t teach those about to enter the system anything about it.
If we did, you wouldn’t have had to write this blog entry. Thanks for being a teacher in an area where our government earns a resounding F!