✍️ ⑥ Why Your Credit Score Dropped Suddenly — 10 Common Reasons

Introduction

A sudden score drop can feel scary — but there’s always a reason behind it. Here are the most common causes and how to fix them.

---

1. Late Payment

One missed payment = up to 100-point drop.

2. High Utilization

Balance spike → immediate score decrease.

3. Hard Inquiry

Applications for new cards or loans.

4. Closed Credit Card

Closing cards reduces overall credit limit.

5. Reduced Credit Limit

Banks sometimes lower limits unexpectedly.

6. New Loan Added

Temporary dip until payment history builds.

7. Delinquent Account Reported

8. Identity Theft Issue

 

9. Old Negative Item Updated

 

10. Credit Report Error

---

Conclusion

Once you know the cause, you can correct it — and your score will usually recover quickly.