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Reasons Your Credit Score May Have Dropped

If you are like most people you are checking your credit score at least once a week or more. But it can be concerning for some people that see their credit score drop for no reason. Especially right now with inflation going sky high and job security isn’t the best.

Why your credit score is dropping

Money is the root of all stress these days and we all are feeling it right now. There may be factors that cause your credit score to drop. We have four things that can be causing your credit score to drop that you may not know.

  1. You are carrying credit card balances if you’re carrying a credit card balance currently your credit score might take a hit. The reason why is because creditors view people that have a balance on their credit cards as a high risk compared to the borrowers that pay their credit cards off each month in full. If you have a credit card you should only be using about 30% of it.
  1. You have closed an account or credit card this can be a reason for the drop in your credit score. Closing accounts isn’t a bad thing for credit scores but it can mean if you still owe money on the account that the bank may have sent it to collections. To avoid this make sure you pay off all standing debts before closing an account. If you don’t know how much you owe you can ask for a copy of your credit report.
  1. If you have had to deal with identity theft this is because people will steal your information and open up new accounts in your name and create more debt. But don’t worry if it happens you can report it to the credit bureaus and they will look into it. If you have fallen into identity theft you won’t have to pay it back.
  1. Another thing that can drop your credit score is if you have too many inquiries on your credit report. Creditors might look at you as “high-risk”. You shouldn’t have more than two inquiries on your report in a six-month period. There are two types of inquiries which are soft and hard. Hard inquires are when things stay on your credit report for three to six years. Soft inquiries are when you pull your credit score or when an employer does it. Soft inquiries should not affect your credit score.

Stay on top of your credit score

You should always stay on top of your credit score and check it to see if anything needs to be improved. You can get a free copy of your credit score usually once a year from major credit bureaus.

The best thing you can do is make sure you are paying your bills on time. This can include credit cards, utility bills, and any other recurring bills.

Get a car loan with poor credit

If your credit score has fallen on hard times and you need a loan like an auto loan? You still have options you can get bad credit auto loans with no money down in Chicago and bad credit car loans in Philadelphia for used cars.

Financing
Simple financing for vehicles with bad credit.
New Vehicles
Auto loans for bad credit or poor credit.
Used Vehicles
Auto loans for bad credit or poor credit.

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