It can take up to two billing cycles -- or one or two months – for your credit score to improve, depending on how your lender or card issuer reports changes.
Improving your credit score is a great goal, giving you access to more credit, more loans and lower interest rates. But how long does it take to see a change?
Most lenders and card issuers report to credit agencies at the end of each billing cycle, and to see a change on your credit report typically takes up to two billing cycles.
However, some lenders and card issuers report every two weeks, which means a paid-off debt will show up faster.
Because reporting cycles can vary, some activity, like a late or partial payment or a cleared debt, may not show up as quickly as others.
This can be frustrating if you've paid off a loan or a credit card and don't see it reflected on your credit report right away. If you’re worried, reach out to your lender and make sure your activities are getting reported correctly.
Your activity on your credit cards and loans is reported to the three major credit bureaus: Experian, TransUnion and Equifax.
These credit bureaus function as databases that store this information about you. They use it to create a credit report and a credit score for you, and they sell that information to let lenders know your financial habits and to allow them to judge your creditworthiness.
Here are the primary types of information credit bureaus collect:
Use Bright to pay off credit cards.
Credit bureaus look at how responsibly you manage your debts, tracking your on-time payments, how much credit you use and how you use different kinds of credit.
Here are the four top factors credit bureaus use to determine your score:
Bright can help boost your credit in a few different ways, automatically building a positive payment history and improving your utilization ratio.
Week by week, Bright finds the fastest, smartest ways to pay off your cards, always on time and always optimized to lower your interest charges.
Bright Credit Builder can help too, automatically building a positive payment history, and with a new line of credit, improves your credit utilization. Credit bureaus love it!
If you don't have it yet, download the Bright app from the App Store or Google Play. Connect your bank and your cards in a snap, set your goals and pace, then let Bright get to work.
With a postgraduate degree in commerce from The University of Sydney, Pranay has his finger on the pulse of the finance industry. Breaking down complex financial concepts is his forte.