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What Caused My Credit Score to Drop?

The most common reasons for a credit score drop is a missed payment, a new line of credit, a credit card removed, or an increased use of your credit.  


A missed payment will have a significant and lasting effect on your credit score.  I had an 810 credit score and I missed a payment on my Lowes card.  I did not realize I had a bill with them.  The bill was under $50. I realized I had not made the payment when it showed up as a negative on my Credit Karma credit score.  It dropped my well aged with over 800 credit score by over 90 points.  Check this article on how I was able to get the Lowes negative removed.???**


A new line of credit like a new credit card will lower your credit score.  Depending on how much credit history you have, a new line of credit will lower your score by ten to thirty points.


 Increasing your debt with a major purchase on your credit card or a new car loan, will also lower your credit score.  A friend of mine with an 800+ credit score recently got a cash advance for the total of his new credit card.  He borrowed over $10,000 on just this one card because he was offered 18 months no interest.  Since he maxed out this one card it knocked eighty points off his score.  Having just one of his credit cards totally maxed out, hit his score hard.

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