Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Terrymboj

0 Contributions
0 People Helped
My credit score has dropped significantly in just a few day how can I see what has caused this
my credit score has dropped and I have no idea why we have not applied for anything that would cause anyone to do a credit check.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
1 Contribution
0 People Helped

Changing Credit Score

A little more information would be needed to best answer your question.  

First, when you say "dropped significantly," how many points do you mean?    While you certainly want a stable score, it is not unusual for a credit score to vary from month to month, if you are using credit cards - even if you pay off the entire balance each month.   To keep this answer simple, I will assume that you have been on time with all of your existing credit obligations.   If that is the case, my guess would be that any changes you are seeing are related to the utilization of your credit cards.   

The credit reporting agencies gather your data at specific points in time.    Even if you pay off your entire credit card balance each month, the total amount of your credit card balance will obviously vary at different times.    There are 2 things that may impact you at those points:  1) the percentage of your total available credit (across all credit cards) and 2) the utilization of the total balance used of each individual credit card.    Some credit cards (such as American Express) that require the entire balance to paid each month don't report utilization ratios, but most cards that allow you to carry a balance do report that information.     

Look at the dates between when your credit score was reported higher and when it was reported lower.  Do you seen any specific points in time when either your total credit card available credit (among all cards) went unusually high (as in greater than 20%)?  Or do you have any single credit card where a large purchase when unusually close to the total avilable credit on that card?   If either of those cases are true for you, then you may be able to tie the change in your credit score to that (or those) situations.    

The good news is that you can avoid that situation by avoiding situations in a couple of ways.   If you believe that the change in your scoare may have been due to a sudden spike in your overall credit utilization (among all cards), then try to avoid having that situation occur at any time when you may be affected by a lower credit score.   If you believe that the change in your score may have been the result using a large percentage of one specific credit card's available credit, then you may 1) request an increase in your available credit line, 2) use credit cards with higher availble credit for larger purchases, or 3) spread out large charges across more than one card to reduce the impact.    I should mention that sometimes a request for an increase in credit card limits may require the credit card company to run a credit check which can have an impact on your credit score (not a significant impact, however).   Sometimes a small increase will not require that process.   The credit card representive should ask your permission before running a credit check, but you should ask the representative.    

I hope that helps.   If you have more specific information, you may be able to get additional information here.   

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.