What Are The Common Reasons For Drop In Credit Scores?
Since credit scores are not static numbers, several factors can cause them to fluctuate.
Late or Missed Payments
The payment history accounts for 35% of your Credit Score.
Even one late or missed payment can have a bad impact on your credit scores, so it's important to make sure you pay all your EMI’s and card dues on time.
Made a Large Purchase on a Credit Card
Maxing out your credit card to make an expensive purchase can increase your credit utilization ratio.
An increased credit utilization ratio can indicate to lenders that you are overextended and not in a position to take on new debt.
You should aim to keep your credit utilization ratio between 30- 40% for the best scores.
Applied for a Loan or New credit card
 Whenever you apply for a new line of credit, lenders will check your credit history to determine your creditworthiness.
 Each time you authorize someone other than yourself, such as a lender, to pull your credit report, a hard inquiry is recorded, and this has the potential to affect your score.
Closed a Credit Card
The length of your credit history counts for 15% of your Credit Score, so a longer history is better for your scores.
Closing a credit card account you have had for some time can shorten your average credit age, and that will factor into your credit score.
Inaccurate Information on Your Credit Report Monitoring your credit reports is one of the best ways to ensure no inaccurate information shows up in your file.
If something in your report is inaccurate, it could be a result of a lender accidentally reporting the wrong information.
It could also indicate that you have fallen victim to identity fraud. If you see something you believe is inaccurate, you should dispute the information with all the four credit bureaus as soon as possible.
You can get both your Personal Credit Score and Business Credit Score by applying directly on the link mentioned below: https://cir.crifhighmark.com
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