There are three main steps to using a credit card that affects your credit score.
First, use your card responsibly by paying the balance for the entire period.
Second, the card issuer will report recent activities to the Credit Bureau, including your outstanding balance and late payments.
Third, the Credit Bureau will prepare and update your credit report. This is used by credit scoring companies such as FICO and VantagesCore to calculate their credit scores.
Having a great credit score will allow you to qualify for the best credit cards, personal and car loans, mortgages and more. So you may wonder how soon or when a credit card company will report it to the credit department. We’ll go into details and talk to experts from Transunion, one of the three main credit bureaus.
How many days do I report my credit card to the credit office?
The short answer is that there is no universal day or frequency when card issuers report credit card activity.
Margaret Poe, Transunion’s director of consumer credit education, explains that card issuers usually report cardholder balances and payment history to the bureau every 30-45 days.
“But the timing can be different,” Poe says. “Consumers may notice that if they have two cards, they are updating the balance at different points.”
Some dates regarding your credit card are solid – such as the card grace period and the due date for when to pay your credit card bill. If you do not make a minimum payment by the due date, it will be considered a late payment. Also, carrying leftover leftovers from the statement after the due date will start to develop interest.
However, credit reports are voluntary and the issuer may report them to everyone. Many issuers and lenders report your activities once a month towards the end of your billing cycle. But others may report to a greater or lesser extent. Also, please note that billing cycles may not match the month on the calendar.
For example, one of my chase card billing cycles ends on the 20th of each month, the same day my card activity was last reported. My payments are scheduled to be paid on the 17th of the following month.
Meanwhile, my activities with two other credit cards were reported on the 14th and 24th and cooperated with the end of the billing cycle for those cards.
When will my credit score be updated?
According to the POE, the main question is when your credit score improves after the recent billing cycle or you can get a hit when it hits.
“It’s pretty dynamic in all respects of different relationships,” she says. She also emphasizes that there are multiple scoring models from both FICO and VantagesCore.
“Scores may vary from model to model, but this is not the cause of the alarm,” explains Poe. “It’s normal to see these changes.”
In fact, your scores may vary from day to day depending on recent reports, hard inquiries, etc.
When did you pay with your credit card late?
While making late payments with a credit card is not ideal, it can occur if your bank account does not have Autopay setup or enough money. Payment history accounts for 35% of your FICO score, so it’s important to know that it affects your credit report.
A slow payment or two won’t immediately drop you into poor credit. However, if your payment is delayed for more than 30 days, it may be reported to the credit department. It will also be reported if you are delayed by 60, 90, and 120 days. At that point, your credit score could be seriously affected.
Even if you are unable to pay your full balance, make sure you make at least the minimum payment by the due date. You’re interested in the remaining balance, but you won’t be bothered by delayed payments.
And as soon as you can make the full payment, you should. “The sooner you can do it, the sooner you can start rebuilding your credits,” advises Poe.
Please note that third party collections and Chapter 10 bankruptcy stay on a 7-year credit report, while Chapter 7 bankruptcy stays for 10 years. If that’s possible to preempt your debts before that, it’s best.
How are credit usage reported?
Credit usage rate, also known as “amount” by FICO – accounting for 30% of your FICO score. Measure how much credits are available. And if you recently made a large purchase with a credit card, it’s worth knowing when it will affect your credit.
If the card issuer reports the balance before reporting its balance at the end of the billing cycle, that high credit usage can be a slight hit on the credit at over 30%. If you pay your balance by the due date, you will be leveled by the next billing cycle.
However, if you want to access new credits, such as a top reward card or car loan, for example, and you need the highest score right now, we recommend that your POE repay some or all of your balances before the billing cycle ends. That way, it will either be lower or zero by the time the card issuer reports what amount to be paid to the credit department.
“As soon as you become available to your funds, try paying back some of the balance,” says Poe.
Conclusion
Knowing when your credit card activity will be reported to the Credit Bureau will help you improve your credit score by managing your payment history, credit usage, and more. You may be reported at the end of each billing cycle, but please call the card issuer to check. You can also view free credit reports on Credit Bealie every week at Annualcreditreport.com.
