August 23rd, 2012

Why Did My Credit Score Drop?

6 Comments | Twitter | |

 

 

It’s never a fun surprise to see that your credit score dropped. Unfortunately, you can’t always fix it right away, but you can sometimes figure out what might have caused it.

Score drops usually break down into three categories:

    • Things you did.
    • Things you didn’t do.
    • Things someone else did.

Here are some of the most common causes of drops:

  1. You closed an account, either by paying off a loan, or closing a credit card. Your credit history and available credit will change as a result.
  2. You opened, or tried to open a new account. Inquiries and new accounts will ding your score too.
  3. You’re spending more or paying off less. If your credit utilization at the point your creditors reported to the bureaus is higher than normal, your score might’ve dropped. If you missed a payment, that might’ve done it too.
  4. There’s a new derogatory mark on your history. Collections, tax liens, defaults… all these can do a number on your credit score.
  5. And of course, there could be a new mistake on your report. The best way to figure out what’s going on is to pull your credit reports. If there’s something wrong in your report, dispute it, and your score should improve.

It’s good to keep in mind that some fluctuations in your score might occur because there are a number of factors influencing it, but you shouldn’t be too concerned over small drops over a short amount of time.

To monitor for changes in your credit report that might affect your score, enroll in Credit Karma’s free credit monitoring and keep an eye on your credit notifications. This can help you pinpoint the reason for score drop.

Overall, continue practicing healthy financial habits and your score should recover.

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Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

6 Comments

  1. Why is my account discontinued

    doug mullins at 1:58 pm on May 27, 2013
  2. Jenna

    Hi Doug, if you’re having trouble with your Credit Karma account, please feel free to email support@creditkarma.com and we’d be happy to help you out. Thanks!

    Jenna at 3:16 pm on May 28, 2013
  3. Yes wondering why credit score has drop..

    tramaine white at 4:11 pm on July 29, 2014
  4. Mike

    Thanks for the question, Tramaine. There are a whole variety of reasons why credit scores might change, some of which are listed in this blog post. Since we don’t calculate your score but instead simply display what we receive from TransUnion, we unfortunately don’t have any additional insight into exactly why your score dropped. If you’d like some further reading, I’d suggest this article on the topic: https://www.creditkarma.com/article/MyScoreDroppedWhy

    Mike at 9:21 am on July 30, 2014
  5. My credit score dropped from 753 to 747 about two weeks ago, right after I paid off my mortage, and paid in full all credit debt. Currently the only debt I have is items I purchase monthly (gasoline, food/clothing purchases, utilities, etc.) and when I receive the credit card bill, it is paid in full. What’s up with that

    Judy at 2:27 pm on August 10, 2014

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