Every person’s financial history is unique, which makes it hard to pinpoint the exact cause for a credit score decrease. Here are a few things to consider:

  • Late payments – can impact a score heavily for years
  • Credit utilization – amount of revolving debt compared to the total revolving credit limit
  • Derogatory marks like bankruptcy, collections, or tax liens
  • Closing old accounts in good standing
  • New lines of credit – this reduces the overall age of your credit. By opening a credit builder account, you may have reduced the average age of your credit history. If this is the case, it is common for your credit score to bounce back with on-time payment history

Your credit score is comprised of five major factors. Learn more about how credit scores are calculated here.