I just got an email that my credit score dropped by over 50 points since last week, but I have no idea why. How do I find out?
Big drops also can happen if you miss a payment on a credit account or if a collection account lands on your credit report. The good news is that the drop doesn’t have to be permanent–you can get those points back over time by making all your payments on time and keeping your utilization low.
Thanks so much for reaching out with your question, and I’m sorry to hear about the score drop. It’s understandable that you’re concerned!
Usually, a score drop like the one you’ve described is because there’s been an increase in your credit utilization ratio. Even if your credit utilization ratio is still in the “good” range (you’re using less than 30% of your available credit), an increase in your utilization can still cause your score to drop.
If you’re not running a higher balance on any of your credit cards, you should take a careful look at your credit report to be sure that all of the information is accurate. Inaccuracies on credit reports are common, so you should always reveiw the information on yours carefully when your credit score changes in an unexpected way.
If you’re still not sure what’s going on, this article offers a few additional ideas to explore:
Please feel free to reach out any time if you have more questions!