Many people have problems with their credit score. Sometimes, it’s not as high as they need it to be. While other times, it just doesn’t get updated quickly. So, when you need to be on top of your credit score, there’s nothing better than accessing your credit report. However, if not done the right way, you can see your score lowering even more.
So, what can you do?
When you’re thinking about how high you need your credit score to be, as a rule of thumb, you should try to achieve one around the 700s or higher. This is the value that most lenders look for before they actually approve the credit you need.
However, many people around the world have one common problem: they just managed to pay up all the credits they had and they are just celebrating. However, when they go check their credit score, they don’t see this taking any effect. What’s happening? Is there something wrong? Probably not. The most common thing that happens is that credit scores aren’t updated on a daily basis. So, if you just paid off all your debt today and go check your credit score tomorrow or next week, you probably won’t notice any difference. In order to see it reflected on your credit score, you need to wait between 30 or 45 days on average. This is the time they have to update your credit score according to your current finances.
Another thing to have in mind is that your credit score depends on what is on your credit report. Your credit report is a very detailed document that shows your credit history. Your history is then run through a credit score model that produces your score.
What usually happens is that the credit score is calculated at the time when the lender asks information about you. So, if you know when your credit report is updated, this is the best time to go and meet the possible lenders because this will make sure that your credit score is already updated.
There is another aspect that you need to consider about your credit score. Lenders usually give information to credit bureaus once a month. Depending on the information provided, this can translate into a slightly better or worse credit score. There are 3 main credit bureaus in the United States: TransUnion, Equifax, and Experian. Depending on your lender, they might report to only one of them, two, three, or they might not simply report to any of them. The kind of information the lenders usually send is related to any activity that is done by authorized users, if you were late with your payment or if you paid on time, your account balance, if your account is delinquent, defaulted, in good standing, in collections, among others, as well as any credit inquiries that have been made recently.
With so many different variables to take into account, it’s really important that you check for any credit updates. Even when you’re not currently looking for a lender, you need to make sure that your credit score is high enough in case you have an emergency, for example.