There are many factors that go into your credit score. Making your payment on time makes up 35% of your score. 30% is made up of outstanding debt or the amounts you owe. Have you been charging more? Credit utilization, one of the most important factors considers the amount you owe compared to how much credit you have available. If this has increased, it would lower your score.
Length of Credit history makes up approximately 15% of your FICO score. Did you close an account that had been open for a long time?
Have you been applying for more credit? 10% of your score is based on this information, so opening new lines could negatively impact your score.
The final 10% of the FICO is determined by the types of credit you have. You want to have a variety of debts.
The reason your score drops is for lack of using credit. Even though you pay your bills on time if you haven't used your credit in a period of time your credit starts too drop for lack of usage
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