FICO Score Changes Constantly

A consumer’s credit score doesn’t remain constant, but changes constantly. Even if you pay your credit card bills on time, never missed a payment, don’t have any kind of debt and even got your credit report checked out for frauds and errors.

The thing is the credit history that is used to determine your FICO score is changing constantly, even if it’s a little bit and that can make your credit score to fluctuate. For every new credit score request, a new FICO score is generated for the lenders and they receive the latest credit score. The score is based on a consumer’s credit report compiled by three major credit bureaus, Experian, Equifax and TransUnion.

The credit reports are frequently updated with latest information received from your lenders like recent credit inquiries, payments and new balances. FICO score is calculated based on the latest information that’s available.

Your credit report keeps on changing even if you didn’t apply for a new credit card or you missed a payment on your car loan or any other loans. Some common scenarios include:

• Every time you make a mortgage payment, you reduce the amount of your overall debt, a key factor used to calculate your credit score. In this case, your credit score will increase.

• FICO doesn’t only consider if you paid your credit card balances on time, but also the existing balances on your credit card statement. Changes in your balance will affect your credit utilization rate. For example, if you have spent more in one month and used 75% of your available credit, then your credit score will go down. If you used only 20% of your credit limit next month, then your credit score will get a boost.

• Old and negative history remains on your credit report for 7 years, 10 years in case of bankruptcy. This means your credit score will improve if these past delinquencies and other negative information fall off from your credit report. Though the impact may be small, this will result in little fluctuations in your credit score.



  1. [...] checking it, tweaking her every spending and saving habits, and learning more and more about how FICO calculates credit scores. She was trying to achieve the perfect score of 850, but soon she found [...]

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