Friday, May 10, 2013

Credit report information is updated daily and Credit Inquiries affect on Scores

Credit report information is updated daily


Credit report information is updated daily


Dear Experian,
I understand you update your records once a month. What day of the month do you update your records from information received from credit card companies?
- FRS
Dear FRS,
Yours is a common misunderstanding. Experian actually updates credit report information continually, every day.
Not all bills are due on the same day of the month. People pay their bills on different days, and creditors send their account updates to Experian on different days, too. Further, Experian representatives collect public record updates at scheduled intervals from courthouses across the nation.
Different credit card companies report at different times. Many large credit card companies stagger their billing cycles in manageable portions of their total portfolio. Each portion is reported at a different time during the month.
There even are a few large credit card companies that are beginning to update information almost in real time, reporting account changes to Experian as they occur. That means accounts, mortgages and public records are being updated continuously as they arrive from many different sources.
At the same time, negative account information is being deleted as it reaches the time frames specified in the Fair Credit Reporting Act (FCRA). Inquiries are being added if you apply for credit, and closed accounts may be removed, also as specified by the FCRA.
It is possible for your credit history to change every day, or even several times in a single day depending on when your creditors update your account information, the status and age of your accounts, which can cause information to be deleted, and whether or not you are applying for new credit.
Thanks for asking.
- The "Ask Experian" team


Why inquiries can change credit scores

Dear Experian,
Why does my score change with inquiries?
- ADM
Dear ADM,
An inquiry is a record that your credit report was accessed in response to an application you submitted. Inquiries provide insight into your financial situation that the rest of the report may not.
The primary reason inquiries influence credit scores is that they indicate you may have acquired new debt that does not yet appear on your report. Additionally, multiple applications within a short period of time may be a sign that you are having financial difficulties and are seeking credit to stay afloat, or to live beyond your means.
Lenders want to be sure you are not in danger of over extending yourself before agreeing to extend additional credit.
The overall impact of an inquiry on your credit scores depends on your unique credit history, but will always be small in comparison to other negative issues such as late payments or very high balances. The more recent the inquiry the greater the impact will be, but an inquiry alone will never be the reason for an application to be declined.
Federal law requires that inquiries be listed as a risk factor with your credit scores if they account for even a single point, so they are almost always included. But, inquiries are usually the last factor because they have the least impact.
Still, it is a good idea to be selective about applying for credit. You may not want to apply for new credit if you know you are planning to make a major purchase soon, such as a house or a car.
Thanks for asking.
- The "Ask Experian" team