Credit scores can be hard to figure out at times. We know they’re important and that most of them have to do with how well we handle debt, but it can be hard to keep track of the smaller details. And trying to raise your credit score is even more frustrating because of how complicated our credit scoring system is. It seems like one month you’re making progress, and the next month your credit score drops 10 points.
Knowing when your credit card company sends its report to the credit bureaus can help you improve your credit score. In this article, we’ll explain how credit reporting works, when Discover reports to credit bureaus, why this information is important, and how you can use it to your advantage.
How to Check Your Credit Report
Credit card companies tell Experian, Equifax, and Transunion about what their customers do with their cards every month. Your personal information, the type of account it is, your credit limit and current balance, your payment history, and the status of your account is all part of the information they report.
Companies aren’t required to send information to credit bureaus, but most credit card companies, including Discover, do. And if they do report, they usually have to tell the truth.
How to figure out your credit score
The information that credit card companies send to the three credit bureaus is part of your credit history and helps make up your credit score. Together, your credit report and score show potential lenders how well you handle debt.
Based on what credit card companies and other creditors tell them, credit bureaus use the following criteria to figure out your credit score:
history of payments Whether or not you pay your bills on time every month
Credit utilization. The amount of available credit that you are currently using
how long a person has had honor Your longest and shortest credit accounts, as well as the average length of your credit report
Credit mix. The different kinds of credit that show up on your credit report
a new loans. Whether you just tried to get credit or opened a new account
You don’t have to figure out how your credit score changes, but it’s a good idea to keep an eye on it. You might want to use a credit monitoring service to find out quickly when your score changes. These services will not only let you know when something new shows up on your credit report, but they will also give you tips on how to improve your credit score.
When does Discover give information to credit bureaus?
Discover credit cards Report your account activity to the three major credit bureaus every month, just like other credit card companies do. Usually, the company sends a report right after the closing date of the statement, which is the last day of your billing cycle.
But one credit bureau may update its information more quickly than another. This means that your score may be different at different credit bureaus.
How important is it to know when your credit card is reported?
It might not seem that important when Discover reports to the credit bureaus, but it is. As we’ve already said, Discover and other credit card companies report your current credit card balance and your credit limit to the credit bureaus.
Your credit utilization rate, or how much of your available credit you are using right now, is based on these two things. If your credit limit is $10,000 and your balance is $2,500, for example, your credit utilization is 25%. If you use less than 30% of your credit, it will have the best effect on your credit score and look the best to lenders.
What happens if you pay your card off every month?
You might think that this doesn’t apply to you if you pay off your credit card balances in full every month. After all, if there is no balance, won’t the credit card company report that there is no balance?
Credit card companies report your balance as of your statement closing date, not your payment due date. So, if you use your credit card for all of your expenses during the month, even if you pay off the whole balance at the end of the month, your balance could be quite high.
The credit bureaus can only work with the information they are given, so they assume that whatever balance is reported to them is an accurate reflection of your credit situation.
How to pay your credit card bill at the right time to improve your credit rating
Once you know when your credit card company reports to the credit bureaus, you can use that information to improve your credit score.
As we’ve already said, a big part of your credit score is how you use your credit. And as a general rule, the less you use your credit, the better. Since Discover will report your balance on the closing date of your statement, you should try to have as little of a balance as possible.
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