Does Moving Address Affect Credit Score?
No, moving your address does not directly affect your credit score. Your address appears on your credit report only as identifying information and has no impact on your creditworthiness or credit scores. However, the things you do (or forget to do) when moving can hurt your score.
How Your Address Appears on Credit Reports
Credit bureaus use your address for one main reason: to prove you are who you say you are. According to Experian, your current and previous home addresses appear on your report purely as identifying information.
Your credit report might show several addresses, including:
- Your current home address
- Previous home addresses
- Work addresses
- P.O. boxes
- Addresses where you get mail
Any previous addresses reported to Experian will remain on your report as part of your identifying information. This helps protect against identity theft.
Why Lenders See Your Address History
When you apply for credit, lenders want to see accurate personal information. They may also require that you have a permanent address on file to be considered for credit.
Your address history helps lenders:
- Verify your identity
- Check for stability
- Prevent fraud
- Match you to your credit history
What Really Affects Your Credit Score
Since your address doesn't impact your score, let's look at what does matter. According to FICO, credit scores are based on five main factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).
Here's what each factor means:
Payment History (35%) This evidence of repayment is the primary reason why payment history makes up 35% of your score and is a major factor in its calculation. Late payments hurt your score more than anything else.
Amounts Owed (30%) This looks at how much credit you're using compared to your limits. Using less than 30% of your available credit helps your score.
Length of Credit History (15%) Older accounts are better for your score. The longer your credit history, the higher your credit score will tend to be.
New Credit (10%) Too many new accounts in a short time can lower your score.
Credit Mix (10%) Having different types of credit (cards, loans, mortgage) can help your score.
How Moving Can Indirectly Hurt Your Credit
While your address change won't directly lower your score, moving can cause problems in several ways:
Missing Bills at Your Old Address
The biggest risk when moving is missing bills. If a utility or credit provider still mails your bills to the old address, missing the payments could negatively affect your score.
This happens when you forget to update your address with:
- Credit card companies
- Loan providers
- Utility companies
- Insurance companies
- Subscription services
Opening Too Many New Accounts
Moving often means setting up new services. Opening more than one account in a six month period, would likely cause your score to drop until you can prove that you pay off your bills responsibly and on schedule.
New accounts that might affect your score:
- Utility services (electricity, gas, water)
- Internet and cable
- Cell phone plans
- New credit cards or loans
Forgetting to Update Voter Registration
Research from Experian shows that getting on the electoral roll can add up to 50 points to your credit score. When you move, you need to update your voter registration to keep this benefit.
Does Moving Often Hurt Your Credit?
Moving frequently doesn't directly lower your score, but it can make getting credit harder. Lenders like to see stability in your personal details. If you move house often that will show on your personal records as part of your report and could be a red flag.
Lenders might think frequent moves mean:
- You have trouble paying rent
- You can't settle in one place
- You might be less stable financially
The Truth About "Bad" Neighborhoods
Some people worry that moving to a certain area will hurt their credit. This is not true. You may have heard that the area where you live or moving to a property with a history of bad credit will impact your score. This isn't the case.
Credit reference agencies do not have blacklisted areas or parts of the country in which the very act of moving there would affect your score.
Your Moving Credit Protection Checklist
Follow these steps to protect your credit when you move:
Before You Move
1. Make a List of All Your Accounts Write down every company that sends you bills:
- Credit cards
- Bank accounts
- Loans
- Insurance policies
- Utilities
- Subscriptions
2. Set Up Mail Forwarding Contact the postal service to forward your mail. This gives you time to update addresses without missing important bills.
During Your Move
3. Update Your Address Everywhere You must inform the relevant lender or bank of the address change as soon as possible, as falling behind on payments or missing entirely could cause issues.
Contact each company on your list to update your address. Most let you do this online or by phone.
4. Set Up Automatic Payments Making sure your mail goes to your new address and getting your regular payments on direct debit will help you not miss anything important at an already busy time.
After You Move
5. Register to Vote Update your voter registration at your new address. This helps your credit and makes it easier for lenders to verify your identity.
6. Check Your Credit Reports Make sure your address information is accurate and the same on all of your credit reports. The Federal Trade Commission recommends checking your credit reports regularly, and you can get free reports from all three bureaus at AnnualCreditReport.com.
7. Monitor for Errors If you find an address you don't recognize in your credit report, you should dispute it through Experian's Dispute Center.
When to Update Your Address on Credit Reports
As long as you have open credit accounts, you don't need to notify Experian that your address has changed. You should provide your new address to each of your creditors, which will in turn update the address on your accounts.
The process works like this:
- You update your address with credit card companies and lenders
- They report your new address to credit bureaus
- Updates are usually made after the end of the billing cycle, so you should allow at least 30 to 45 days for the new address to be added
If You Need Faster Updates
If you need your new address to appear on your credit report sooner, you can submit documentation to Experian showing proof of your new address, such as a copy of your electric bill or bank statement along with a copy of your photo ID.
Common Moving Mistakes That Hurt Credit
Avoid these mistakes when you move:
Mistake 1: Not Telling Credit Card Companies
Missing just one credit card payment because the bill went to your old address can hurt your score for months.
Mistake 2: Canceling Old Accounts Too Quickly
Don't close credit cards right after moving. This can hurt your credit utilization ratio and length of credit history.
Mistake 3: Applying for Too Much New Credit
Limit new credit applications during your move. Space them out over several months if possible.
Mistake 4: Forgetting Smaller Bills
Don't forget about smaller accounts like gym memberships, magazine subscriptions, or store credit cards.
What to Do If Moving Hurt Your Credit
If you missed payments because of your move, here's how to fix it:
1. Catch Up on Missed Payments Pay any overdue bills immediately. The older a credit problem, the less it counts toward your credit score. So the longer you pay your bills on time, even after having late payments, the more potential for your FICO Scores to increase.
2. Contact Your Creditors Call companies where you missed payments. Explain that you moved and ask if they'll remove the late payment as a goodwill gesture.
3. Dispute Errors If incorrect address information caused problems, dispute it with credit bureaus. According to the Federal Trade Commission, both the credit bureau and the business that supplied the information to a credit bureau have to correct information that's wrong or incomplete in your report.
4. Set Up Automatic Payments Prevent future problems by setting up autopay for all your bills.
Planning Your Move to Protect Credit
Smart planning makes all the difference. Here's a timeline for protecting your credit:
6-8 Weeks Before Moving
- List all your credit accounts and subscriptions
- Research utility companies at your new home
- Check your credit reports for accuracy
2-4 Weeks Before Moving
- Set up mail forwarding
- Start updating addresses with major accounts
- Apply for any new utilities you'll need
Moving Week
- Update remaining addresses
- Confirm mail forwarding is working
- Keep records of all address changes
After Moving
- Register to vote within 30 days
- Check that bills are coming to your new address
- Monitor credit reports for several months
How Moving Companies Can Help
When choosing professional movers in Edmonton, look for companies that understand the stress of relocating. At Last Stop Moving, we know that moving involves much more than just packing boxes - it's about starting fresh without making costly mistakes.
A good moving company can help by:
- Providing detailed moving timelines
- Offering packing services so you have more time for important tasks
- Giving you a moving checklist that includes credit protection steps
Final Thoughts
Moving your address does not directly affect your credit score. The myth that changing addresses hurts credit comes from the real problems that can happen when people forget to update their information.
Your credit score depends on how you manage money, not where you live. By following the steps in this guide, you can move without worrying about your credit taking a hit.
Remember the key points:
- Addresses are just identifying information on credit reports
- Missing bills at your old address is the real danger
- Update all your accounts before you move
- Register to vote at your new address
- Check your credit reports after moving
Take time to plan your address changes properly, and your credit will stay healthy throughout your move. Whether you're using long-distance movers or handling a local move, protecting your credit should be part of your moving strategy.
Don't let moving stress cause credit problems that could last for years. A little planning now can save you a lot of trouble later.
