
Moving to a new home can be an exciting experience, but it can also have a significant impact on your credit score. Your credit score is a three-digit number that reflects your creditworthiness and is used by lenders to determine your eligibility for loans and credit cards. In Canada, the average credit score is around 680.
When you move frequently, it can create a lack of stability in your credit history, which can make it harder for lenders to assess your creditworthiness. In this article, we'll explore how changing addresses can impact your credit score and what you can do to minimize the impact.
How big of an impact does moving have on my score?
When it comes to credit cards and zip codes, moving frequently can have a negative impact on your credit score, especially if you don't update your address information with your lenders. When you move, you may forget to update your address with your credit card companies, banks, and other lenders. As a result, you may not receive important notices or bills, leading to missed or late payments that can negatively impact your credit score.
Additionally, moving frequently can create a lack of stability in your credit history. Lenders prefer borrowers who have a stable credit history, as it shows that they are responsible and reliable when it comes to managing their finances. If you move frequently, it can be challenging for lenders to assess your creditworthiness, as they may not be able to see a consistent pattern of financial behaviour.
What happens to my credit report when I change addresses?
When you change the billing address on your credit card, your credit report will be updated with your new address information. However, your credit score will not be affected by the address change itself. Instead, your credit score is based on a variety of factors, including your payment history, credit utilization, length of credit history, and types of credit accounts.
Let's look a little bit closer at each of these:
Credit accounts
The more active credit accounts you have, the more of a possibility it is to lose track of these accounts during and after your move. Additionally, opening more than one account in a short period when moving homes can indicate to credit bureaus that there is some instability in your financial history, which can affect your credit score slightly.
Credit history
Credit lenders prefer individuals with a stable credit history as they are less of a risk to lend money to. When you don't remain at the same address for long, it will be listed on your credit report, which will appear as a red flag to lenders in the future.
Credit utilization ratio
Moving comes with unexpected expenses. The more you wrack up debt during this time, the higher your credit utilization ratio will be, which will be listed on your credit report.
Payment history
Lastly, if you fail to update your credit information with your lenders, your new address can affect your credit score should bills or bank statements get lost in the mail. When this occurs, your non-payments will be recorded on your credit report, potentially impacting your ability to secure lower interest rates and higher credit limits in the future.
What should I do when I change addresses?
When you change addresses, it's essential to update your address information with all of your lenders. This includes your credit card companies, banks, mortgage lenders, and any other lenders you may have. Updating your address information ensures that you receive all of your bills and notices on time, which can help you avoid missed or late payments that can negatively impact your credit score.
You should also monitor your credit report for accuracy after you move. Your credit report should reflect your updated address information, and any accounts that you closed or opened during the move should be reflected as well. If you notice any errors or inaccuracies on your credit report, you should dispute them with the credit bureau.
Are address blacklists real?
While a change in your address will affect your credit score and be recorded on your credit report, there is no such thing as a blacklisted address. This means that you can move to whatever property or neighbourhood you would like without having to worry that the address itself affects your score.
Can the people you live with affect your credit score?
Yes and no. The only way the people you live with can impact your credit score is if you decide to apply for joint credit with them.
Can previous house owners affect your credit score?
No, this is something you won't need to worry about. An inquiry on your credit is only conducted on your history alone. The address you're moving to and its prior owners will not matter or be taken into account.
How can I change the billing address on my credit card?
Don't worry. Changing your billing address on your credit card isn't as labour-intensive as the process of a credit application and can typically be done by following the steps listed below:
1. Log into your online banking app
If you have an online banking app, you can go ahead and plug in your username and password. You can also do this on a computer.
2. Select your profile or my account
Once you've logged in, go to your profile or account settings, which will either be in the upper right or left-hand side of your screen.
3. Select edit account details or personal information
Then, select Edit your account details or personal information from the drop-down menu.
4. Select edit home address or billing address
Once you've been sent to the new page, you'll be able to edit your previous billing address and enter your new one.
5. Click continue or save
Lastly, save your changes and log out of your bank account on your phone or computer, and you should be good to go!
If you're having difficulties navigating your online banking, you can also head into your local branch and request an address change in person. Remember, each time you change your permanent address, confirm with all banking and credit companies that your new address information has been updated on your credit file in advance of your move, that way the information can be sent accordingly to credit bureaus.
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How can I build my credit score?
If you're concerned about the impact of changing addresses on your credit score, there are several things you can do to build your credit score. First, make sure you pay all of your bills on time and in full every month. Late or missed payments can have a significant negative impact on your credit score.
Second, keep your credit utilization low. Your credit utilization is the amount of credit you're using compared to the total amount of credit available to you. Lenders prefer borrowers who have a low credit utilization, as it shows that they are responsible when it comes to managing their finances.
Finally, avoid opening too many new credit accounts at once. When you open too many new credit accounts at once, it can negatively impact your credit score, as it can be seen as a sign of financial instability.
Unsure what your current credit score is? Get a free credit score check and build your credit with KOHO with our virtual credit card with the option of adding overdraft protection coverage.
The Bottom Line
Changing addresses can have a significant impact on your credit score, but it's important to remember that your credit score is based on a variety of factors, not just your address information. By updating your address information with your lenders and practising good credit habits, you can minimize the impact of changing addresses on your credit score and maintain a strong credit history.
At KOHO, we help Canadians by offering thoughtful financial products that streamline their finances--whether you're looking to update your plans for spending and saving by opening a high-interest savings account or get a cash advance of up to $250 with zero interest.
To stay on top of financial topics and improve your financial literacy, don't forget to take advantage of our free online research hub to learn about more topics like how to avoid scams and identity theft, what documents are required when opening a current account, how to transfer money between banks, and more!
Note: KOHO product information and/or features may have been updated since this blog post was published. Please refer to our KOHO Plans page for our most up-to-date account information!

About the author
Niki is a communications specialist with years of experience as a freelance and marketing agency content writer. With a knack for storytelling, Niki enjoys working with businesses from diverse industries to craft engaging content that resonates with target audiences worldwide.
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