The feeling of anger or frustration is a common response when you see your credit score decline. A sudden change in that number can feel like an assault on one's sense of self, as if the person has lost control over their financial situation and identity. When this downward trend continues for too long it may be time to reassess where resources are allocated so they have more wiggle room until they are able to recover from these setbacks.
There are many
reasons why your credit score may have dropped. Here's a list of things that
might be behind the drop, and tips for fixing them:
1. You have a
high balance on one or more credit cards
There
are a number of ways to improve your credit score but
paying on time and avoiding carrying high balances is the best way. Your
"credit utilization ratio" measures how much you use in relation to
what's available for borrowing (think about it as something like money
management). Make sure that no more than 30% of each card’s limit is used at
all times; doing so will put you closer towards obtaining one of those coveted
A+ scores!
2. There's a
missed payment lurking on your report
A
late payment can make your credit score plummet, but it's not the only factor.
Late payments are damaging to your credit report for up to seven years and they
affect other aspects of financial life as well - from a higher interest rate on
debt purchases all the way down to an inability or difficulty in renting
apartments.
Paying
attention is crucial because if you're just one day behind with any account
that doesn't mean 30 days without paying; it means 31-60 days without paying!
3. Identity
theft or a mixed credit file is dragging you down
Having
a lower credit score than you expected can be shocking and might prompt some to
wonder if someone is using their identity. If they are, it could mean that your
card information has been stolen or an account was opened in your name without
permission.
If
this sounds like something you're experiencing, contact the credit repair company issuing your cards immediately!
4. You applied
for new credit recently
Identity
theft is a common occurrence, and many people are not even aware that they have
been targeted. This can happen when someone has your credit card number or
social security number. If you suspect that this might be the case for you,
notify your bank immediately so fraudulent activity can stop as soon as
possible!
It's
surprisingly easy to get caught up in identity theft; all it takes is one
person with access to enough information about us! Be sure to keep track of who
knows what kind of personal details (e-mail passwords being especially
dangerous), because once an imposter gains control over our accounts we're
unlikely ever able regain them again on our own accord without massive help
from law enforcement agencies.
5. There's a
default judgment and you don’t know it
What
if you had a default judgment against you and didn't even know about it? It
could happen because the letter got misdelivered or lost in transit, so now
there's nothing to stop your creditors from seizing all of your assets.
A
default judgement is just one way someone can take everything that belongs to
another person without them knowing anything was happening at all.
You
might find out about an old debt in collections from public records -- but
don't let misinformation stay as such just because of too many unanswered
questions! You can settle them with creditors yourself (or reach out) without
fees by either paying off what's owed over time or making monthly payments
until all debts have been settled.
Call us today (888) 803-7889 for a free credit score on credit repair ease and get an easy to read report card that breaks down how you’re doing in the five key areas that affect your credit – payment history, credit utilization, account mix, age of your accounts (credit length), and number of inquiries made. You can even see what actions will have the most impact on improving or harming each category!
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