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Your credit score may have dropped 100 points for a number of reasons. Perhaps you missed a payment on one of your bills, or you may have been late on a payment. Alternatively, you may have applied for new credit, which can also lower your score. Whatever the reason, it’s important to take steps to improve your credit score. Below are the top 10 Reasons which might have caused the drop in the credit score points.

1. You missed a payment – Even if you generally keep up with your payments, one missed payment can drop your credit score significantly. If you’re worried about forgetting a payment, consider setting up automatic bill pay.

2. You used too much of your credit limit – Using more than 30% of your credit limit can have a negative impact on your score. Try to keep your balances below 30% of your credit limit.

3. You closed a credit card – Although it might seem like a good idea to close an unused credit card, it can actually hurt your credit score. That’s because closing a credit card will lower your overall credit limit, which in turn can increase your credit utilization ratio.

4. You applied for too much new credit – Every time you apply for new credit, it results in a hard inquiry on your credit report. Too many hard inquiries can signal to lenders that you’re desperate for credit or may be at risk of defaulting on your loan repayments. Try to limit the number of new credit applications you make.

5. You have a lot of debt – Having a lot of debt can drag down your credit score, even if you’re making all of your payments on time. Try to pay down your debt as much as possible to improve your credit score.

6. You have a high credit utilization ratio – Your credit utilization ratio is the amount of debt you have compared to your overall credit limit. A high credit utilization ratio can hurt your score, so try to keep your balances well below your credit limits.

7. You’ve been late on payments – Even if you’re usually good about making your payments on time, one late payment can drop your credit score significantly. Set up automatic payments to make sure you never miss a due date.

8. You have a lot of maxed-out credit cards – Having several credit cards with high balances can hurt your score, even if you’re making all of your payments on time. Try to pay down the balances on your credit cards to improve your score.

9. You have a mix of different types of debt – Having a mix of different types of debt, such as credit cards, student loans, and a mortgage, can be a good thing for your credit score. However, having too much of any one type of debt can hurt your score. Try to keep a balance between different types of debt.

10. You have a short credit history – If you have a short credit history, it can be difficult to get a good credit score. The best way to build up your credit history is to use your credit responsibly and make all of your payments on time. Over time, as you build up a positive payment history, your credit score will improve.

If you’re wondering why your credit score dropped, these are some of the most common reasons. By understanding what can impact your score, you can take steps to improve it.