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The reasons your credit score fluctuates

Applying for a new credit

All credit cards have limits depending on how you use it. A new card may have a lower score. However, when you cancel all the past cards, it affects your score negatively. So, therefore, when applying for a new card, keep the limits in mind.

Payment history

You must repay your loans on time. Missed payments are recorded on your file for around seven years. So, therefore, make sure you never miss the date of repayment of your debt. Set monthly reminders for them so that you do not forget to pay the installment.

Bankruptcy

It can cause a detrimental impact on your file. So, therefore, it is advisable to seek help of an experienced attorney to make an informed decision as the bankruptcy can range from 7 to 10 years.

Credit card balances

Your credit card balance also influences your score. However, the balances on your card vary on a monthly basis depending on your utility. The less variable available balance is on the card, the greater is the credit utilization.

However, many individuals have several cards. Closing them without balances decreases your utilization. So, therefore, it is recommended to close down even if it holds zero balance.

Theft

Certain times despite of making payments on time, your score remains low. If such is the case, analyze the report. It may help you spot something unusual that may be causing a drastic change in your score. This can also be a simple mistake that can be corrected easily.

Length of credit history

The length of time a specific account is opened; including the time frame between the oldest to the newest account also affects it. If you are not using an account for a long time, it can drive your score low.

Time

If you are not using a credit card, get it closed as the companies might change some policies and cause a slight fluctuation in the score.

These are the reasons that may cause fluctuation in your credit score. For more information on credit score and ways to improve it, get in touch with 700FICO Score. Call us for details or email us your queries.