Credit score is a numerical score thatindicates the creditworthiness of an individual. It is a number that reflectshow likely it is that you will repay your debts and be able to handle other financial commitments.
When a credit score has been updated, itmeans that it has been updated with the new information from the credit bureau.This includes things like paying on time, no defaults on loans, etc.
How often do credit reports update?
Credit scores are updated on a monthlybasis. It is important for consumers to stay updated on their credit score andkeep their credit report clean.
Credit reports update once a month, whichmeans that you will have to wait for 2 months before you can see any changes inyour credit score.
Consumers should make sure that they keepup with their credit reports and check them at least once a month.
Whenare credit scores updated?
Credit scores are updated every month andthe update is based on your credit history. The update is also based on how youuse your credit card, pay your bills and manage debt.
There are two factors that can impact thescore: new information coming in and old information going out. For example, ifyou take out a large loan or go through a tough financial situation, it will cause an increase in the score. However, if you have more than one credit card with a high balance then it willlower your score.
The most recent update was in December2018 when Equifax updated the FICO score for all U.S residents to reflectchanges in their credit history from October 1st to December 31st, 2018.
What is rapid rescoring?
Rapid rescoring is a credit score that isgenerated by a computer algorithm. It is used to assess the risk of lending tosomeone.
The rapid rescoring process starts withgathering information about the individual, including their income andemployment history, then it works out the probability of default on the loan. This score is then compared to the credit score of other individuals who have already been given loans.
Rapid rescoring has been introduced in aneffort to provide more transparency and fairness in lending decisions as wellas reduce costs associated with defaults and bad debts.
