Why Did My Credit Score Drop 60 Points?
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Maintaining your credit score is important for every individual as your credit score directly influences the type of credit products available to you. Consumer's will have access to lower interest rates and better financial options available during their lifetime.
Noticing a 60 point drop on your credit score should be concerning due to the impact it can have on your financial status. Here we set out the most common reasons why a 60 point drop could occur and what can be done about it.
Common Reasons A Credit Score Can Drop 60 points
You Have 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 exceeding 60 points.
You Credit Utilization Has Increased
If a consumer uses the maximum credit facility available within a short time frame a drop in credit score can be anticipated. This indicates a consumer is easily overextended and not financially positioned to accept more debt, leading to a potential drop in your credit score.
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. This is why reviewing your credit report regularly is important to avoid penalties on your credit score.
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 severity of these events. They may even prevent, or limit future lending opportunities available to consumers.
Identity theft, although generally not the consumer's fault, can lead to any of the violations above ensuring a drop in a consumer's credit score exceeding 60 points. This is why noticing a 60 point credit score penalty deserves immediate attention.
What Should I Do If My Credit Score Dropped By 60 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 penalty before any solutions can be tried 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.
Bottom Line
There are various reasons credit scores can be impacted negatively with 60 or more points. Consumers must review credit reports regularly to reduce the likelihood of this occurring.
Consumers have the option of consulting credit repair specialists like Credit Sage. This affords consumers a team of experts to focus on working on their credit and resolving any issues they identify in the process.
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