Why Does My Credit Score Change Monthly

Why Does My Credit Score Change Monthly?

Your credit score is a numerical representation of your creditworthiness. It plays a crucial role in determining whether you can obtain a loan, credit card, or even rent an apartment. Many individuals wonder why their credit scores change on a monthly basis, and understanding the factors behind these fluctuations is essential for maintaining a healthy credit profile. In this article, we will explore the reasons why your credit score might change monthly and how you can manage these changes effectively.

Factors that Affect your Credit Score

1. Payment History: The most crucial factor that affects your credit score is your payment history. Consistently making payments on time is essential for a good credit score. Late payments, defaults, or bankruptcies can significantly impact your creditworthiness and cause your score to drop.

2. Credit Utilization: Credit utilization refers to the percentage of your available credit that you are currently using. It is recommended to keep your credit utilization ratio below 30%. Higher credit utilization can indicate financial strain and negatively impact your credit score.

3. Length of Credit History: The length of your credit history also affects your credit score. Generally, a longer credit history is considered more favorable. It demonstrates your ability to manage credit responsibly over an extended period.

4. Mix of Credit: Lenders prefer to see a mix of credit types, such as credit cards, mortgages, and auto loans. Having a diverse credit portfolio can positively impact your credit score, as it shows your ability to handle different types of debt responsibly.

See also  What Happens With a Perfect Credit Score

5. New Credit Applications: Each time you apply for new credit, it results in a hard inquiry on your credit report. Multiple hard inquiries within a short period can negatively impact your credit score, as it may indicate a higher risk of default.

6. Credit Age: The age of your oldest and newest credit accounts is also considered when calculating your credit score. Opening new accounts can lower the average age of your credit history, potentially impacting your score.


Q: How often does my credit score change?

A: Your credit score can change monthly, but it doesn’t necessarily mean it will. Changes in your credit score typically occur when new information is reported to credit bureaus, such as missed payments or credit utilization changes.

Q: Will checking my credit score frequently affect it negatively?

A: No, checking your own credit score does not impact your credit negatively. However, when lenders or credit card companies check your credit during the application process, it may result in a hard inquiry, which can slightly lower your score.

Q: Can I improve my credit score quickly?

A: Improving your credit score is a gradual process. It requires consistent positive financial behavior, such as making payments on time, reducing credit utilization, and avoiding new credit applications. With time, these actions will positively impact your credit score.

Q: How long does negative information stay on my credit report?

A: Negative information, such as late payments or defaults, can stay on your credit report for up to seven years. Bankruptcies can remain on your report for up to ten years.

See also  What Will Happen to My Credit Score if I Stop Using My Credit Card

Q: Are credit scores the same across all credit bureaus?

A: No, credit scores can vary across different credit bureaus. Each bureau may have slightly different information on your credit report, resulting in variations in your credit score.

In conclusion, your credit score changes monthly due to various factors such as payment history, credit utilization, credit age, and credit applications. To maintain a healthy credit profile, it is essential to make payments on time, keep credit utilization low, maintain a diverse credit portfolio, and avoid unnecessary credit applications. By understanding these factors and taking appropriate actions, you can proactively manage your credit score and improve your creditworthiness over time.