Why Is My Credit Score Dropping?
Owning a credit card is an incredibly large responsibility that one should never take for granted. It can feel overwhelming and like there is a lot to keep track of, between your balance and your credit score. Sometimes, you might find that your credit score is dipping for an unknown reason. The unsettling feeling is not necessary, because there exists a number of actions that you can take to stop it from dropping. The following are a few reasons why your credit score is not presenting what it should.
1. Your Credit Score Is The Result Of Identity Theft
Perhaps such a list as this should start with the issue one might worry about most. When your credit score drops quite unexpectedly, the first thought that you may have includes that your private information has become compromised. Although it is a rare occurrence, identity thieves strike every day. The process of disputing false purchases is long and tedious, but you must contact all three credit bureaus. After you contact Equifax, Experian, and TransUnion, you might find it best to put a freeze on your credit for the time being.
2. A High Balance Causes A Low Credit Score
A dropping credit score does not have to be the result of someone stealing your information or even from a lender accidentally inputting the wrong information. You might have accidentally used your credit card more than you should have. The recommended amount of utilization of your credit card is that you try to keep your balance under thirty percent of your credit limit. Having your credit statement for the month arrive when your credit is nearly depleted can oftentimes lead to your credit score dropping. Try to go a couple months not using your credit card as much and see what a difference it can make.
3. You Missed Payments On Your Credit Card
Sometimes in life the simplest answer is the correct one. You may not have even realized that it happened, but perhaps you missed a payment on one of your credit cards. Do your best to make sure that you pay all of your bills on time. You may need that extra boost that quick cash can provide. If that's the case, a car title loan from Southwest Title Loans just might be the answer for you. Do whatever helps you. Just make sure that you don't miss paying your bills on time, leading to a dip in your score.
Use Your Credit To Your Advantage
When everything goes right, a credit card is great. It's a wonderful way to make sure that you don’t miss out on certain items that you need. It can help make payments on your home or even just help pay your grocery bill. It remains important to monitor your credit score on a regular basis. Doing so can ensure that your score stays excellent. You don't want poor credit to be the reason that you get turned down for a big loan. As long as you stay responsible, you will keep a high credit score, and life will be that much easier.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.