10+ Easy Why Did Credit Score Go Down. The truth is, credit scores can rise and fall for a variety of reasons. You were the victim of identity theft. Maintaining a high balance on any credit type could. Yes, this is credit scoring lingo, but it basically measures how much.
A very common, yet not entirely obvious cause, for a score to drop is an increased utilization ratio. This means your current debt is higher relative to your new lower total credit limit and available credit balance. Finally, let’s address what might be the most frightening reason for a drop in credit scores:
Second, only medical debt that is at least a year.
Paying off a loan rarely has a major impact on your credit scores, but there are a few situations when it could lead to a score drop. Having low credit utilization (30% or less, and the lower. It is one reason your credit score could drop a little after you pay off debt, particularly if you close the account.
The Truth Is, Credit Scores Can Rise And Fall For A Variety Of Reasons.
Each of these has varying degrees of importance in the calculation.