What happens to your credit score when you move?

Your Credit Score and Moving: What You Need to Know

Moving can be a significant life event, involving numerous adjustments and changes. One potential concern during this transition is the impact it may have on your credit score. However, it’s important to understand that the mere act of moving does not directly affect your credit score.

How Moving Can Indirectly Impact Your Credit Score

While moving itself does not influence your credit score, certain financial behaviors associated with relocation can have an indirect impact. These include:

• Increased Credit Card Balances: When moving, you may incur expenses that lead to higher credit card balances. If these balances are not paid off promptly, it can negatively affect your credit utilization ratio, which is a factor in calculating your credit score.

• New Credit Applications: Moving may require you to apply for new credit, such as loans or credit cards, to cover expenses. Multiple credit applications in a short period can temporarily lower your credit score due to hard inquiries.

• Change in Payment History: If you move and fail to update your address with your creditors, it can lead to missed payments. Late payments are a significant negative factor in credit score calculations.

Protecting Your Credit Score During a Move

To minimize the potential impact of moving on your credit score, it’s crucial to:

• Maintain Good Financial Habits: Avoid overspending and pay your bills on time.

• Manage Credit Card Balances: Keep your credit utilization ratio low by paying down balances regularly.

• Limit Credit Applications: Only apply for new credit when necessary.

• Update Your Address: Notify your creditors of your new address promptly to ensure timely bill delivery.

• Monitor Your Credit Report: Regularly check your credit report for errors and dispute any inaccuracies.

Remember:

Your credit score is a reflection of your financial history and behavior, not your physical location. By being aware of the potential indirect impacts of moving on your credit score and taking proactive steps to manage your finances, you can maintain a healthy credit score regardless of your address.