Why did my credit score drop 47 points? This question is about Credit Scores

Your credit score may have dropped by 47 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 47 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 Closed accounts 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. You can remove negative information from your credit report if it is inaccurate by filing a dispute with the three major credit bureaus. You can also check your credit report and access personalized credit-improvement tips for free here at WalletHub.

Ad Disclosure Ad Disclosure

Why did my credit score drop 47 points?

Answer Question Report Abuse

This question is about Credit Scores

see this user

Lauren Smith, WalletHub Staff Writer

@laurenellesmith • 10/31/22 This answer was first published on 10/31/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

Your credit score may have dropped by 47 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 47 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
Closed accounts

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.

You can remove negative information from your credit report if it is inaccurate by filing a dispute with the three major credit bureaus. You can also check your credit report and access personalized credit-improvement tips for free here at WalletHub.

Answer Question

Why did my credit score go down when nothing changed?

Why did my credit score jump 40 points?

Is it normal for a credit score to drop 40 points?

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.