Credit bureaus are those companies in charge of gathering all your financial information and putting it together in a credit report. Your credit issuer company is then responsible for sending this data, which will be passed onto lenders, landlords, employers, and other institutions that will require it. The released information will be determinant, as it will directly affect your credit score. Your credit report will affect your credit score, as it will define your capacity to get a new credit loan or any other financial product.
Therefore, it might be worth for some people to understand how and when these kinds of institutions release your data, and why this is so important.
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When does it happen?
To be honest, there is not a fixed time frame for when your card issuer will send your information to the credit bureau. However, what we can ask ourselves is when does this data appear on your own credit report? Well, the fact is that this process will widely depend on the credit bureau. On the other hand, it is also common that balances are usually reported to those bureaus on your statement closing date. It can take some days to process and update all your information.
All three major credit bureaus, Equifax, TransUnion, and Experian develop this process at a different pace, so there is no exact answer to the question. Sometimes, even after the end of your billing cycle, your financial information might have not delivered to your credit bureau. It can be quarterly or even monthly, as it will also depend on the practices of the lender.
Why reporting is an important part of the process
Credit bureaus must have the right information regarding your financial activity. Let’s say that, for example, you have recently paid for your gas bill, but your credit card issuer has sent your report to the bureau just before you made the payment, which has deducted from your credit score some extra rates. Due to this, it is important to keep an eye on your overall expending, which is a very important factor regarding credit score.
On the other hand, if your card issuer often does these sudden changes, it can seriously impact your credit score. These fluctuations on your credit score might act in a detrimental way, for example when you apply for new lines of credit.
Some problems that you may encounter
As above mentioned, having a healthy credit score is an important factor for all your financial movements. You will then work on its maintenance on a daily basis, as its performance is always being reported. However, like life itself, some things do not go as expected. In many cases, issuers do not report your data to all credit bureaus, as this is not a mandatory requirement for them. At the same time, they do not always say to what credit bureau they are sending your information. In that case, the best that you can do is to keep your credit score free of negative impacts and clean. Credit bureaus usually collect your data from:
- Local retailers.
- Phone companies
- Insurance companies
What can you do if not agree with their information?
If you ever see any mistaken information coming from credit bureaus, you can always dispute the information. Your credit bureau will correct it in the next 30 days approximately. At the same time, you can always request to get delete some of the information. Derogatory marks, such as late payments and civil lawsuits can only be listed on a report for seven years, while bankruptcies may last there for up to ten years.
How do late payments affect me here?
You have nothing to worry about one day late payments. If you have not been able to pay your phone bill today but you can pay it tomorrow, your credit card issuer will not report this to the bureau. On the other hand, issuers will report a one-month late payment (which is 30 days). Credit bureaus will pass this negative information regarding your finances, which will negatively hit your credit score. In some cases, this damage might be just temporal, as you can reach an agreement with your issuer company.
Quick tips to keep an eye on:
- Keep checking on your credit report.
- Avoid late payments.
- Contact your card issuer if you do spot any mistaken data.