Why Did My Credit Score Drop by 130 Points Without Any Apparent Reason?

Question from Bridgette: What would cause a 130 drop in credit score for no reason?

I received an email from a credit monitoring service stating there was a drop in my credit. One credit bureau went from 760 to 630. Another credit bureau is still reporting 760. When I look at “see what’s changed”, there are no changes to provide a reason. I have no debt, no loans, 1 credit card with on time payments, no one on any accounts, no new accounts, no closed accounts.

My score has been the same for 2 years. I did get pre approved for a house a few months ago but my score only dropped 30 points and recovered. If I find a house by the end of the year, my lender will need to do a last credit check and now I’m slightly paranoid.


A sudden drop in your credit score can be alarming, especially when there’s no apparent reason for the change. However, it’s important to remember that credit scores can fluctuate due to a variety of factors. Here are some potential reasons why your credit score might have dropped:

1. Errors on Your Credit Report

One of the most common reasons for a sudden drop in credit score is an error on your credit report. This could be anything from a wrongly reported late payment to identity theft.

What to do: Review your credit report carefully for any inaccuracies. If you find any, dispute them with the credit bureau.

2. Changes in Credit Utilization

Credit utilization, or the ratio of your credit card balances to your credit limits, can significantly impact your credit score. Even if you pay your bills on time, a high credit utilization ratio can lower your score.

What to do: Keep your credit utilization ratio low. Aim to use no more than 30% of your available credit.

3. Differences Between Credit Bureaus

Different credit bureaus may have different information about your credit history, which can lead to variations in your credit score.

What to do: Check your credit reports from all three major credit bureaus (Experian, Equifax, and TransUnion) to ensure they all have the same information.

4. Hard Inquiries

When you apply for credit, lenders perform a hard inquiry on your credit report, which can temporarily lower your credit score. You mentioned getting pre-approved for a house, which could have resulted in a hard inquiry.

What to do: Limit the number of hard inquiries by only applying for new credit when necessary.

5. Changes in Credit Mix

Your credit mix, or the types of credit you have, can also affect your credit score. If you paid off a loan or closed a credit card, it could have impacted your credit mix and lowered your score.

What to do: Maintain a mix of credit types, such as credit cards, installment loans, and mortgages, to show lenders you can handle different types of credit.

In conclusion, while it can be concerning to see a significant drop in your credit score, it’s important to remember that you have the power to improve it. By understanding what affects your credit score and taking steps to manage these factors, you can work towards rebuilding your credit.

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