Why Did My Credit Score Drop 200 Points?

Last Updated: Nov 15, 2022

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Maintaining a consistent financial history will improve credit scores 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.

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What Should I Do If My Credit Score Dropped By 200 Points?

The only way to resolve an issue is to identify the cause of it. Consumers will have to review their credit reports and identify the reason for the negative impact before anything can be done to resolve it.

Once the issue is identified, consumers can dispute the errors in an attempt to recover their credit scores. Alternatively, consumers may consult credit repair specialists like Credit Sage to help repair the damage on their credit reports and potentially raise the consumer's credit score to new heights.

Bottom Line

There are limited reasons credit scores could be impacted negatively by 200, or more points. Consumers must review credit reports immediately to identify the cause of the credit score penalty, because it will severely impact your financial status.

Consulting credit repair specialists like Credit Sage is advised to help repair any damage and ensure your best possible credit score is attained.

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