Why are my credit scores constantly changing? Demystifying credit score migration

August 9, 2023

Credit scores change by nature. A 700 credit score month can be higher or lower the next, depending on a variety of factors. The question is—what causes credit scores to change, and why? Or better yet – how does a consumer regain control of these fluctuations?

Let’s start with some basics:

To create a credit score, you first have to start with raw data. The companies known as our Nationwide Credit Reporting Agencies (NCRAs) — Equifax, Experian and TransUnion — maintain historical records on consumer credit in their respective databases. The raw data the NCRAs manage is then processed via a credit model such as VantageScore, which pulls specific attributes into a weighted algorithm that produces the number we call your VantageScore credit score.

The NCRAs calculate credit scores when companies request them directly – usually a financial institution such as a lender (think banks, credit cards, and the like), but also potentially a utility or a rental company. You can even request credit scores yourself through a free score service. Just remember: every time your credit score is requested, that score is recalculated based on the data in your credit report. And though some credit score requests can lower your score, many others can’t (including instances where you request your score yourself).

Your credit score is influenced by a variety of factors in your credit report. These can include types of debts and amounts owed, how long an account has been open, the variety of accounts on your credit report, the length of your credit history overall, and any derogatory information currently on the report. All of these factors come together, weighed in specific ways, to influence your final three-digit credit score. And because these change over time, and are calculated repeatedly over time, your credit score changes in parallel.

It might surprise you to know that your score doesn’t actually live on your credit report. For this reason, you might not know that your credit score is changing (or migrating) constantly over time unless you actively track these changes.

Here’s an example. Your credit card balance likely fluctuates over the course of a month. You covered small (or treated yourself to large!) expenses, or interest accrued to your balance and was applied, and now what you owed on day 1 this month and what you owe on day 30 are different. Now, your credit card company has reported these differences to the credit bureaus, changing your credit report in subtle ways.

These changes result in a different number of points you’ll earn across the many credit scoring metrics, which is why your scores are likely to be slightly different today than they were at the same time last month.

Because the information in your credit profile has changed, your credit score changes in line with the credit scoring model used and how it measures and weighs those fluctuations in your credit profile. The small changes in your credit score are designed to reflect the small changes in behavior that are part of regular day-to-day life.

Essentially, the point is this: if you start to keep track of your scores, and you note subtle fluctuations, or even more extreme ones, don’t panic! Migration up or down is perfectly normal and will happen as your credit reports change. With every passing month, your accounts grow a month older, as do inquiries, your card balances fluctuate, and derogatory marks drop or, unfortunately, appear on your report.

All of these things create changes in your credit score, making them likely slightly different from each previous time you checked your score, and each time you’ll check it in the future. Don’t interpret this as ‘change’ – like a Polaroid photo snapped in a different moment, interpret that migration as a readjustment or recalculation to more accurately reflect where you are right now.

To learn where you can obtain your free VantageScore credit score, please visit: Free Credit Scores