When Do Creditors Report to Credit Bureaus

2019/02/25

People are often confused about credit reporting. A simple question like ‘when do creditors report to credit bureaus’ can’t be answered in one word. It varies with creditors. Some creditors report daily. Most creditors report monthly. Few creditors report quarterly. We will look how the timing of reports affects your credit scores.

If your creditor reports to credit bureaus every day, your late payment will cause problems to you. The report will say your date of payment has been yesterday and you haven’t paid your balances. This appears as non-payment or late payment in your credit report. You have to pay your bills on the bill date. If you are late, even by one day, it will pull your credit down. Ask your creditor how often they send credit reports to the credit bureaus.

Most creditors send credit reports on a monthly basis. Such creditors usually send their reports after closing their monthly statements. In some cases, it will not be a problem if you are late by two or three days. The monthly statement shows you have paid your bills in full.

The problem is, the creditors can still report you for late payment. You may be late by a day or two only. The report can say you have paid your bill one day or two days after the bill date. The creditor can avoid reporting this information too. Always expect your creditors will send your late payment information to the bureaus. This way you can be safer. Late payments appearing in the credit report is a bad thing. You can’t successfully challenge such information. Then again, some creditors do avoid reporting such instances. It won’t be a problem if you make a late payment once in a year. If you are late in your bills every month, you are in for some rude shocks.

The timing creditors report to credit bureaus is also significant. If you use revolving credit (credit card or some open line of credit), the creditors can send your reports the day before your payment date. Take your bill date is 20 of this month. The creditors report the bureaus on 19 or even 18. Does it affect you? Read on to find out.

Your creditor can’t report you for either non-payment or late-payment. However, such early reports can still damage your credit. This is how.

The credit report shows you have used most of your available credit. The report may say 50% or even 90% utilization of your credit. The report doesn’t show you are about to pay the bill in a day or two. Since you utilize most of your credit, it will be shown as maximum utilization of available credit. Non-utilization of available credit is one factor determining your credit score. Since your credit utilization rate appears to be very high, your credit score will hurt.

The only thing to do is to make the payments two days before the bill date. Then, when the creditor sends your report to the credit bureaus, it will be shown that you have paid your bills in full. Your credit score will be intact.

When creditors report to credit bureaus is a thing you must find out by asking your creditor. If they report daily, you only have to pay your payments on the bill date. Credit card companies often send your reports once every month. In most cases it will be on the day before your bill date.

You now have the information. Plan your payments in such a way to improve your credit scores. You know how.

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