Why Has My Credit Score Dropped

Credit scores can drop for many reasons. Since your credit score is comprised primarily of a number key aspects, a drop in your score can usually be traced back to one of those factors.

1) Percentage Of Credit Credit Balances Used
This refers to how much of your available credit you are currently using. It can be calculated by taking your total outstanding credit card balances and dividing that number by your total credit card limits. One study has shown that the closer to the limits of your credit cards you get, the lower your score will be. So try to use less on your available credit.

2) On Time Payments
Just one or two late payments will dramatically affect your score – in a negative way.
Late repayments are recorded on your account when if you pay an account just one day later than the agreed due date.

3) Average Age Of You Credit Lines
The longer you have had credit accounts open, the more creditworthy you appear to lenders. If you’ve closed an account recently, you’ve shortened your credit history and your credit score might drop as a result.

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