My credit score recently dropped from 750 to 700, and I’m trying to understand what could have caused this sudden decrease. Could you please explain the possible reasons why a credit score might go down by 50 points?
Reasons for drop in credit score-
High Credit Utilization
Using more than 30% of your credit limit can lower your score.
Late or Missed Payments
Delayed bill payments negatively affect your credit history.
Recent Credit Applications
New credit applications trigger hard inquiries, which can reduce your score.
Multiple Applications in Short Time
Applying for several credit cards or loans quickly may hurt your score.
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I also had the same question related to dropping of my cibil score after checking it
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Following might be the reasons of sudden drop in your credit score are-
- It might be due to late or missed EMI payment or your credit card bill payment.
- Exceeding your credit utilization limit above 30%
- Default on loans
- You closed your old credit card
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Sometimes even small changes can make your score dip. Like if your card balance shot up close to the due date, it gets reported as high usage even if you paid it off later. Also, a lender reporting late by mistake or an error in your report can cause a sudden drop. Best to download your detailed credit report and match it against your recent activity, that way you’ll know exactly what triggered the fall.
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