What things can cause my credit score to drop?

Your credit score Fico, the number between 300 and 850, is used by the creditor as a hint of whether you are likely to repay your debts. Since your credit score affects everything from your ability to get a credit card to your ability to secure your mortgage, it is essential to know what your credit score can drop. Late payments that only have new accounts, many credit questions and bankruptcies can all decrease. Lenders who look at your credit message can find out whether you have 30, 60, 90 or more on your account. If you are significantly late with the payment, expect your credit score to drop. For this reason, consumers with the past history of questioning sometimes decide to use automatic account paid services offered by many banks. For this reason, younger consumers tend to have a slightly lower credit score than their older counterparts - although all other factors are the same. You want to increase your score, avoid constantClosing old accounts. Even if you have a credit card you rarely use, leave your account open, so creditors see as a long -term part of your credit history.

The amount of credit questions made in your message can also cause your credit score to drop. This is because creditors believe that you will plan to spend several new accounts in a short period of time. If you want to keep your score, do not request credit cards or loans if they are not absolutely necessary. However, personal questions will not affect your credit score, so it's okay to request a copy of your credit message regularly to check the inconsistencies or signs of identity theft.

While bankruptcy can provide a new beginning for those who have serious financial problems, submitting bankruptcy will cause your credit score to drop significantly. In addition, it will remain in your credit report for the period10 years. Usually the administration of bankruptcy causes your credit score to drop by 160 to 220 points.

If you have recently been denied credit because your score is too low, don't be discouraged. Since the Fico scoring system is designed to allow recent good behavior to help balance past errors, develop conscious efforts responsibly to use credit cards and pay your accounts in time gradually improves your score. It is not an easy process, but the results are worth another effort.