The Fair Credit Reporting Act became law in 1971 to ensure that all people had access to accurate credit reports. Part of a credit report's accuracy is based on how frequently it is updated. Credit bureaus and your creditors are required to keep the information within your credit report regularly updated and accurate.
Time Frame
Credit information is updated by your creditors once every billing cycle. This typically occurs every 30 days.
Significance
Creditors that fail to regularly update consumer credit report information risk being removed from the credit bureaus' reporting program.
Features
If you have recently disputed a collection account, the Fair Debt Collection Practices Act prohibits the creditor from updating the account on your credit report until the debt has been validated. There is no set time frame for when a validation must occur.
Facts
Creditors may update your account at any time during the billing cycle. This can result in your credit report information being updated numerous times each month, depending on your open accounts.
Considerations
If you dispute a debt with the credit bureaus and are successful, your credit information will be updated within 30 days. But if the credit bureaus side with your creditor, your credit report will not be updated.
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