How Current Are Credit Reports?

Credit reports, both personal and commercial, are updated every time a consumer or company pays a credit card bill, applies for a loan or credit card, or closes a credit card account. Credit reports, and thus credit scores, are always evolving.

Credit scores automatically improve as your overall personal or company credit history improves. More careful credit management will lead to better credit scores over time, just as past credit problems will hurt your credit score less as time passes.

If you are looking to improve your credit report and credit score, don't apply for multiple credit cards within a short period of time or make a string of late payments. Looking for new credit is equated with a higher risk status, as are late payments. The biggest shifts in a credit report rating result from a long period of good or bad credit management, however, not a single positive or negative item.

Remember: Always pay your bills on time, keep your personal and company credit card balances low, apply for new credit only when you or your company needs it, and check your credit report periodically for any inaccuracies. Financial habits can quickly change a credit rating for the better or for the worse.