13 Jun How Often Your Credit Score Updates and What Affects It
If you’re monitoring your credit report and trying to recover your credit score, Credit Boost helps you to keep track. Knowing how often your credit score updates and what affects it gives you a key advantage when it comes to restoring your creditworthiness. In South Africa, the data on your credit report can positively or negatively impact your score. It is easy to check your credit score without harming it.
How often are credit scores updated? Typically, your credit score is updated every month or every 45 days, as new information is shared with a credit bureau from a credit-reporting agency. However, it is important to note that while updates occur monthly, the exact timing can vary. The extent to which yours changes depends on how much your credit card balances fluctuate, and how often you apply for and open new accounts. Whether you are consistently up to date with paying your creditors also makes a difference to your credit score.
What Affects Your Credit Score
Given the significance of your credit score and how it serves creditors, it is important that your credit report be as accurate and up to date as possible. This is also a sure way to avoid reckless lending. According to the National Credit Act (NCA) and governed by the National Credit Regulator (NCR), creditors have a responsibility to always ensure safe lending practices. Here are some factors that can harm your credit score:
Applying for Credit: When you apply for a loan, credit card, or store card, the next step would usually involve a hard inquiry. This allows the lender to access your credit report and assess how risky it is to borrow you money. The higher your credit score, the more likely you are to be approved for credit. A tip from our team is to avoid applying for multiple loans and accounts in the same time frame. It is seen as “credit shopping” and can also negatively impact your credit score.
Payment History: It is crucial that you keep up with your monthly repayments and debt obligations. Missing these payments can lead to a reduced credit score, showing that you cannot handle your finances responsibly. If you miss a few payments, it is seen as defaulting on your loan and can stay on your credit report for up to 5 years.
How you Utilise Credit: The amount of credit you are actually using compared to your available credit is known as your credit utilisation, and plays a big role in your credit score. We recommend keeping your credit repayments between 20% and 30% of your income. Having a credit card with a higher limit can also work in your favour, as it shows lenders you’re trusted to manage larger amounts of credit responsibly.
Formal Records: Your public records, like court judgments, admin orders, or sequestration will show up on your credit report and have a negative impact on your score. Lenders see this as a red flag, which makes it hard to qualify for credit. Debt Review also shows up, so your score might drop for a bit during and after the process. If you need help with debt clearance, you’re in the right place.
To begin with, utilise our FREE CREDIT CHECK. This will give you insight into your current financial situation, and point you in the right direction.