Credit Reports

Some individuals believe that they can’t do anything to improve their credit score because the score is locked in for six months. Some individuals believe the credit counselor who promises a change on their credit history within 10 days. The truth hides in-between both of the above beliefs, when it comes to how often FICO scores change. When working on rebuilding credit people often wonder how fast can they expect to see changes. There are not clear timetables. As information changes, so does the score. Regulations require some changes to be done within a specified amount of time. Reporting agencies may report once a month or less to the three credit bureaus.

When the credit bureau receives new information, the credit score is re-calculated. It may take 1-3 months for the changes to appear and for credit scores to change. Even if a debt is paid off today, it may take weeks before it is even reported to the credit bureau. It will then take time for the information to be processed and the credit report is changed. A credit score may change before items actually show up on the credit history. This fact has made credit score calculating seem even more confusing for many consumers.

For some changes, like errors on the credit report, the credit bureaus are required to make changes within 10 days. Credit counselors will brag on the number of clients that had their credit score changed within 7-10 days. This way this is done is by the agency clearing up the credit report errors (and there are bound to be some). This is something that individuals can do on their own. Other quick changes can only be requested by a mortgage company and is often worth the expense. This is referred to as rapid restructuring.

Credit scores would be unstable if credit information was reported and posted immediately by the following agencies:

* Collection agencies
* Mortgage companies
* Lenders
* Borrowers
* The government (child support arrears, unpaid taxes)

Credit scores may not be current to the minute, hour, or even day, but this can be managed. Find out when agencies report to the credit bureaus and when the credit bureaus calculate scores. Know when your credit history will be updated. This information can be used to plan payment schedules that will repair credit scores.