Most Americans understand their credit scores determine if they will be able to borrow money at an affordable interest rate. Beyond that, credit scores remain somewhat mysterious, because the entities that determine credit scores keep their “trade secrets” very well under wraps. One question that comes up repeatedly is, “Why does my credit score fluctuate so much?” Keep reading to see some of the reasons.

The Same … But Different

All the credit bureaus use algorithms to generate consumers’ credit scores. But each one is a bit different, and they keep the specifics to themselves. So even if you check your score with all three bureaus at the same time on the same day, you’ll very likely see three different scores — but generally in same range.

There’s No Set Schedule

In general, creditors report to the credit bureaus once a month. But these reports don’t all happen on the same day at the same time. Plus, information from collection agencies and public records factor into the equation. And even just the passage of time can cause changes as older information carries less weight than more recent updates. On any given day, depending on what’s being added to or taken off your credit report, you could see one score in the morning and another in the evening.

Behaviors and Habits

Say you have just one cash-back credit card you use to make all your purchases every month, but you always pay the balance in full. This sounds like it should help your credit score, but it might not. That’s because of timing. If this creditor reports immediately after you make your payment every month and you have a $0 balance, that’s great. But, if they report in the middle of the billing cycle when you’ve utilized more than 30% of that card’s credit limit, it could be hurting your score.

It’s a Moving Target

If you set a goal to achieve a certain credit score, don’t be discouraged if it takes longer than you think it should to reach it. Or if it goes down again shortly after you reach your goal. Try not to think of a certain credit score as the goal in and of itself, because your credit score will always fluctuate somewhat. Instead, make it your goal to regularly practice positive credit habits, which will organically lead to a better credit score that is more sustainable over time.

Learn more about the factors that determine your credit score and habits to help you manage your credit score more effectively.