My Credit Score Dropped For No Reason. What Now?

My Credit Score Dropped For No Reason. What Now?
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If you don’t monitor your credit regularly, you should. For those who have great credit, it’s just another way to lift your spirits and remind you how awesome you are. If your credit isn’t great and you’re trying to raise your score, it’s important to check it to check your progress. Whatever your situation is, you may encounter the stunning situation in which your credit score drops for no reason.

Having a good credit score isn’t just a win with prospective in-laws, it’s also important for your financial goals. People looking to finance a home or car definitely need good credit to reduce the hurt of such a large purchase, and business owners can use credit to grow their business. According to a Nav survey, 42% of small businesses rely exclusively on their owners’ personal credit scores and another 53% use a combination of personal and business credit scores. Regardless of your goals or demographic, your score can be your lifeline to growth. If your credit score dropped for no reason, what do you do now?

Should You Be Worried?

Your first step should be to assess whether or not the situation requires attention or remedy. “Credit scores fluctuate – that’s not unusual. So if your credit scores drop you don’t need to panic” suggests Gerri Detweiler, business credit expert with Nav. For various, normal reasons, your credit score may fluctuate a few points here and there.

In the case of a larger drop, however, you may have reason to take action. “If yours drops dramatically you want to look into it right away. A drop of 15-20 points or more could be due to higher balances reported on one or more of your credit cards – or it could indicate fraud or something negative impacting your credit scores” adds Detweiler.

When your credit score has taken a dive, it’s time to take a closer look and possibly take action.

What to Do Now

So, what do you do? Fortunately, there is a way to not only check more in-depth on your report, but to also dispute false information. Around 25% of small business owners who check their business credit reports found errors.

“If you see your scores drop, check your credit reports. Look specifically at what’s changed and what steps you may be able to take to recover. If you monitor your credit scores using a service, (you can check for free with Nav) you may get information that will help you understand what’s changed” says Detweiler.

Use the resources available to you to understand the problem and get the direction necessary. Having the correct information and items on hand before can make the process of filing a dispute as smooth and quick as possible, and can possibly help your credit escape unharmed.

The Process

Each of the personal credit bureaus (Experian, Equifax, and TransUnion) is required to provide you with a free copy of your credit report once every twelve months. Services like Nav can give you a better insight into your business credit profile. Each bureau has their own dispute process in place, and doing your homework before officially filing will be worth your while.

Staying on top of your finances and balances is also key to being able to catch discrepancies and take care of problems like this. For business credit reports, understanding which accounts report to your credit report as tradelines and which don’t is also key.

The dispute process could be anywhere from a few days to several months, but being prepared and educated on your credit will make the process as smooth as possible and keep you in the game.

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18 responses to “My Credit Score Dropped For No Reason. What Now?

  1. Gerri Detweiler Has no idea why the credit scores are falling she is just giving the same canned response to everyone. Equifax, Experian and Trans Union are all private companies and they are more than likely lowing scores because of all the bad press about scores being inflated.

  2. My credit score has gone down for NO reason for the past 6 months, from the neighborhood of 787 to 711. No clue what’s going on. Can you help me?

  3. I recently was approved for HELOC and knew it would effect my credit. In one month it went from 802 to 755 is this common or a red flag?

  4. My credit score dropped 91 points on credit karma all of a sudden. I didn’t open any new accounts. Balances are all at $0 on my report and my utilization is at 0%. Nothing dropped off my report and nothing was added on my report. The report even says reason for changes and I click it and it says no new changes to report from 2 weeks ago when it last updated but my score dropped 91 points it makes no sense. If nothing new is showing on my credit report but it drops 91 points what is going on?

  5. I use two sources- Creditwise through Capital One and Credit Scorecard through Discover. A month ago, my score according to Discover was 809 and Creditwise was 775. Today, I logged into both to check again. Discover is now saying my score is 781 and Creditwise is saying 776. Why did it take such a dip though one site but go up by a point on the other? I haven’t opened any new accounts, had any inquiries and I don’t hold a balance on any credit card.

    1. There could be a number of reasons Krista. First, it is not unusual for credit scores to fluctuate as new information is added throughout the month. Frustrating, I know, but VantageScore says a 20 point fluctuation is not unusual.

      As you’ll see in this article the two scores and bureaus you are monitoring are different: 150+ Places to Monitor Your Credit For Free
      Discover shows an Experian FICO 8 while CapitalOne shows a VantageScore 3 based on TransUnion data. Those are two different scoring models from two different bureaus so there could be some slight differences in the data that has been reported and/or the weighting.

      Keep in mind that even if you pay your credit cards in full, your balances are likely reported before your payment is received. So the closing balance on your credit cards could affect debt usage, which can affect your scores.

      I’d recommend you keep watching for a month and see what happens. It’s probably going to level out if there’s nothing major happening with regard to your accounts.

  6. My credit score dropped 70 points because a card was canceled by Capitol One for no activity. Never used it. is there some recourse or remedy to reset my score to the level it was before the cancellation?

  7. MY score dropped 70-90 points out of nowhere I haven’t had anything change in spending or accounts closing what should I do ! PLEASE HELP!

    1. It’s hard to say what happened here Greg. What service are you using to monitor your credit scores? What messages are they giving you for the reasons your scores are where they are?

  8. Hi, my husbands credit drop 35 points and we are freaking out, we bought a car on January and he got sone inquiries and of course the balance of the car but I checked the score after the purchase and it was only like 7 points down. We are doing all the payments on time and have nothing different, is this normal after a big purchase? Please I will really appreciate your help.

    1. It’s not unusual for a credit score to drop when you take out a new loan. But if the loan appeared on your credit reports in February and you’re seeing a change in July then I wouldn’t necessarily think that would be the reason (though it’s possible). Are you checking your credit report and score each month through the same service each month?

  9. Hi,
    Me credit score dropped 41 points. From 700 plus to 696 points! I do not see the reason why this would do it. My balance actually decreased since i’m paying it off. On time payments. Looking at all the changes in my credit report, it should have gone up. I checked my official transunion report too. Nothing in there told me as to why my credit score went low

  10. My credit score dropped 20 points! I went from 764 to 744, I just paid off one credit card and I have one more that I can start when I get my tax refund.

    1. Jasmine, I understand your frustration. It’s not unusual for credit scores to fluctuate by 20 points in a month. That’s actually not considered significant. If you can hang in there for a month and see what happens you may see it level off. You didn’t close the account you just paid off did you? Generally it’s best to keep credit cards open if you can.

  11. My Experian report shows a credit limit increase alert and right after a 14 pt drop with no explanation. I’ve looked over and the only change I see is actually the last credit card with a balance being paid off. All other credit bureaus are increasing. What could this be?

    1. Daneshea, I know it’s frustrating to see a drop rather than an increase but credit scores fluctuate and a 14 drop isn’t generally considered significant. Unless you’re trying to get a mortgage or something important I’d just recommend you monitor it another month and see what happens. If it goes down again, let me know.

  12. What if your credit score drops 25 points in a two month period, but there are zero changes to the reports you can access? I have never been able to access my TransUnion due to their “inability to verify my identity”. Despite sending multiple disputes, copies of my Social Security Card, Drivers License, etc this issue has never been resolved. I just spoke to a lawyer who wants $20,000 to figure out what’s going on, but I know there must be a way for me to fight this (effectively) myself. If you can offer any help, I’d greatly appreciate it.