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Does Credit Score Change Every Month?

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Does credit score change every month? To answer this question, first, we will have to know about credit scores. A credit score is a three-digit number that signifies an individual’s credit risk or ability to pay off bills or debts on time. More importantly, credit scores are not fixed and can change according to your financial behaviour and other necessary information.

If you are thinking about taking a home loan or car loan, then you may often check your credit score to see how much it has progressed. This will enable you to understand if you are ready to apply for a home loan or any other loan from any financial institution or bank. However, checking your credit score regularly doesn’t mean that your credit score will also get updated.

Credit scores are updated at various intervals throughout the month, and occasionally it may take several days or weeks for your score to change. Your score might fluctuate even if you check it today and apply for a loan or credit card tomorrow.

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When is your credit score updated?

Your credit score may rise or fall depending on the information on your credit reports. Your credit score is influenced by a variety of factors, such as new balance amounts, bill payments, account openings, etc. Generally, credit scores get updated at least once every month but this can change in case there are multiple financial reports in your name. 

When any of your creditors send information to Al Etihad Credit Bureau, which is the main credit bureau in the United Arab Emirates, your credit score may get updated. For example, the credit scores of some individuals may get updated four times a month according to their credit report. These fluctuations may occur due to multiple loans being reported on their credit report, as well as changes in their credit card balances.

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Huge changes on your credit score

As mentioned earlier your credit score may get changed once a month and it also happens incrementally, however, there are several exceptions involved as well. Paying on time and how much of your available credit you use are the main determinants of your credit score. Large, unexpected declines in your score are probably caused by:

Any late payments

If you fail to pay your credit card bill within 30 days then your credit score will take a major hit. Late payments have a significant impact on your credit score and are recorded on your credit report for at least seven years. Do your utmost to catch up as soon as you can if you've fallen behind on one of your accounts. By paying back your debts you will be able to raise your credit score significantly.

Utilizing most of your credit limit

Your overall credit utilisation rate also has a major impact on your credit score and credit report. Your credit card debt will increase if your credit card utilisation rate increases and because of this increasing debt your credit card score gets affected. 

To conclude

By now you must have received the answer to your question, ‘Does credit score change every month?’ However, if you have come across huge changes in your credit score which is totally unexpected and strange, it can be a signifier of identity theft and you should report it to the Al Etihad Credit Bureau and request an investigation. Also, remember that checking your credit score frequently does not affect your credit score. 

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