Why Did My Credit Score Drop 200 Points?

Maintaining a consistent financial history will improve your credit over time. Credit scores influence the type of credit products a consumer will have access to during their lifetime, with potentially lower interest rates and other financial benefits.

Noticing a 200 point drop on your credit score is uncommon and requires immediate action! Credit scores are rarely, if ever subjected to 200 point drops unless something has gone drastically wrong, or if accounts have been neglected without correction for long periods of time.

Reasons A Credit Score Can Drop 200 points

Continuous Late Or Missing Payments

Consumer payment history influences up to 35% of your credit score. A single late payment listed will have a negative impact on a credit score. The severity will increase the more payments are missed, or left outstanding. Transgressions of this nature can quickly result in point deductions totaling 200 points.

Inaccurate Information Is Reported On Your Credit Report

Mistakes aren’t uncommon on credit reports. If information is incorrectly reported on your credit report it may lead to severe penalties against your credit score. If left unattended for long periods of time the penalties may accumulate to 200 or more points.

This is why reviewing your credit report regularly is important to avoid unnecessary decreases in your credit score. However, situations like this normally require the guidance of credit repair specialists to attain the most effective way to repair consumers credit scores.

Experienced A Major Event Like Foreclosure, Bankruptcy, or Identity Theft

Events such as foreclosure and bankruptcy will significantly drop your credit score due to the nature of these events, it may even prevent future lending. Identity theft although generally not the consumers fault can lead to any of the violations above ensuring a drop in a consumer's credit score.

If consumers with excellent credit scores experience one of the major events their credit scores can drop by 200 points. The higher your credit score the more drastic the point penalty will be for financial transgressions.