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▷ ▶ Why Did My Credit Score Drop? SelectSmart.com free Advice flowcharts and decision trees.
A SelectSmart.com Flowchart by Kurt. See Kurt's 4me blog page.
Viewed 279 times. Created January 2016.
This SelectSmart.com Advice flowchart, a free online decision tool is a creation of Kurt and for amusement purposes only. The implicit and explicit opinions expressed here are the author's. SelectSmart.com does not necessarily agree.
AdviceWhy Did My Credit Score Drop?
By Kurt
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Has a credit score of yours taken a recent dip? Don’t panic: take a climb through Experian’s Decision Tree to figure out why it could have happened…and what you can do about it.

               
Have you made a late payment recently?
YES
Late payments (of 30 days or more) are a major factor that can affect your credit scores.
Make the payment as soon as you can and try to keep future payments on-time. Consider automating payments if things are hectic or you’ve forgotten them in the past.
Making timely payments is an easy way to keep your credit scores strong.
 

NO








Is a credit balance currently running high?
NO
Have you closed a credit card recently?
YES
The longer you have had a credit card, the more it can strengthen your overall credit when it shows you’ve been using credit responsibly for a long time.
Pay down your balances as you normally would, but consider keeping your credit card open to benefit from its history, longevity, and available credit.
 

YES


NO






High balances on your credit cards may be lowering your scores, even if you’re current with payments.
Are you holding too much unsecured debt?
NO
Has your credit history been the target of a lot of inquiries?
YES
Too many “hard” credit inquires – when different financial institutions check your credit in order to make a lending decision – may negatively affect your credit scores, since it may look like you’re seeking credit at many places and trying to overspend.
Limit your hard inquiries when you can. Remember that checking your own credit (known as a “soft” inquiry) never affects your scores and helps keep you in the know.



YES


NO




Consider keeping balances at or below 30% of your credit limit on each card to avoid common “overuse” in the eyes of some lenders.
Secured debt, such as a mortgage, is seen differently by lenders and others than unsecured debt like credit cards.
There may be an error in your credit score. To dispute your credit report online, visit: http://www.experian.com/disputes/main.html
 
 









 
Make your debt work for you by working to pay down your unsecured debt and making prudent use of secured debt.