Here's What To Do When Your Credit Score Dropped
While it’s not usual for credit scores to fluctuate a few points from month to month, a larger drop of 20 points or more may indicate a problem that should be investigated right away.
We’ll review eight reasons for a sudden score drop.
You’ve become the victim of identity theft.
Remember that the best way to protect your credit and identity is to check your credit reports for unauthorized activity regularly. It’s easier than ever to stay on top of your credit by signing up for free access and alerts at sites such as Credit Karma and Credit Sesame.
You have an error in your credit reports.
File a dispute with each of the credit bureaus that shows any inaccurate information. Then contact the creditor who reported the error and correct the data with the credit bureaus.
You unintentionally missed a payment due date.
If you check your credit reports and are surprised to see a late payment, act quickly to settle your account. Maybe your payment got lost or damaged in the mail, or there was a glitch with your online bill pay service.
Your credit utilization increased.
What may surprise you about credit utilization is that it can increase even if you haven’t maxed out your credit cards. For instance, if your card issuer cuts your available credit limit, your utilization ratio would go up.
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