Your credit score may have dropped by 37 points because a late payment was listed on your credit report or you became further delinquent on past-due bills. It’s also possible that your credit score fell because your credit card balances increased, causing your credit utilization to rise. An ideal credit utilization ratio is 1-10%.
You can check your credit score and find out exactly why it changed for free at WalletHub. Also, our free simulator shows how your score will likely change due to various actions moving forward, which can help you determine the most efficient way to improve your credit.
Why Your Credit Score May Have Dropped 37 Points
Missed or late payments
Unpaid debt sent to collections
Delinquent account charged-off
Increased credit utilization
Inaccurate information on your credit report
Reduced account diversity
If you have good to excellent credit, derogatory marks have a greater impact on your score than if your credit is already poor. Fortunately, in either case, the effect of a negative entry diminishes over time.
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