Pulling your credit report is the first step to identifying why your score dropped 40 points.
You can identify all recent negative items that may have affected your score, leading to the drop. Remember that the most common reason for a 40 point drop is due to balance changes.
There are 6 main reasons why your Credit Score dropped.
- You spent more money with your credit cards.
- You missed a payment on one of your accounts.
- A negative mark appeared on your credit report.
- An old credit card account closed.
- You paid off loans (student, card, personal, etc).
- You recently applied for a new loan or card (and a hard inquiry appeared on your report).
- In all of these scenarios, the #1 way to find out which affected your score drop is by reviewing your report with a professional.
In all of these scenarios, the #1 way to find out which affected your score drop is by reviewing your report with a professional.
Why Did My Credit Score Drop So Much?
There are multiple reasons your credit score might have dropped. Anything from closing accounts and missed payments to negative marks on your report can impact your credit score. Luckily, a credit repair expert like Credit Glory helps identify and remove errors on your report (& boosts your score).
How Many Points Does My Credit Score Go Down When I Apply For A Credit Card?
Applying for a credit card means the bank does a hard pull, dropping your credit score roughly 5 points. This stays on your credit report for two years. After that, it drops off, raising your credit score.
Why Did My Credit Score Drop After Paying Off Debt?
Having a mix of credit cards and loans are often good for your credit score. While paying off debt is important, if you only have one loan and pay it off, your score might drop because you no longer have a mix of different types of accounts.
Get Your Credit Score Improved Professionally
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It's so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
If you're looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (833) 461-0151 or setup a consultation with them. They also happen to have incredible customer service.
Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report. Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.