Reader Question: When should you check your credit score?

We've received some fantastic credit haikus already. Keep 'em coming! The haiku contest is open until Wednesday this week.

Until then, let's answer some reader questions. Jimmy wrote in this morning with a great question about credit scores:

How often should I check my credit to see whether my Beacon score is high or low. I just recently paid off 90% of our bills. I need to know when is the best time to check my credit rating?

Jimmy's question about credit score updates is fairly common. The answer is: Anytime is a great time to check your credit scores. You see, credit scores can change anytime that the data on a credit reports is updated. Your credit score doesn't exist on its own, it is only created based on the most current information your credit report. The easiest way to track credit score changes is through a credit score monitoring program.

If Jimmy's not interested in these kinds of monitoring services, he should you wait about three weeks to check his credit score again. Each credit company has their own unique schedule for reporting updates to the credit bureaus, but most of your balances should be updated within a month.

Keep in mind that paying off your debts doesn't usually have a major positive impact on your credit scores. Accounts such as collection records, judgments, bankruptcy and liens will remain on your credit score for 7 or more years whether or not you pay the balance. You'll see the most benefit from paying off positive credit card accounts with very high balances. Also, remember to leave the account open after it is paid off. Closing accounts can damage your credit scores.

Do you have a question for our credit experts? Send us an email!

Note - What does Jimmy mean by a "Beacon" score? Equifax markets a credit scoring formula called a Beacon score for business use.  Consumers can't buy their Beacon score directly. The Beacon score is becoming less popular with the rise of the FICO score and the new VantageScore.