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Camille620

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Why does your credit score drop when you have less accounts,
I'm really confused. I have an excellent pay history and still my credit score has dropped due to I have less accounts. That dosen't make sense to me. Please explain this to me

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Credit score depends in part on how MUCH total credit you have.  If you had 5 accounts and each gave you a $1000 credit limit, you'd have $5000 total credit to use. Each account credit limit shows a level of trust in your ability and reliability in repaying the "loan" (which is fundamentally what a credit limit is). If one of those accounts was closed, you'd lose $1000 out of your total credit and that reduces the trust and drops your score. 

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