Why Would Credit Score Drop 35 Points in a Week

Why Would Credit Score Drop 35 Points in a Week?

Your credit score is an essential financial tool that lenders use to determine your creditworthiness. A high credit score indicates responsible financial behavior, making it easier for you to obtain loans, credit cards, and favorable interest rates. However, sometimes your credit score may unexpectedly drop, leaving you wondering what could have caused such a significant decline. In this article, we will explore some common reasons why your credit score may drop 35 points in just one week.

1. Late or Missed Payments:
One of the most common reasons for a sudden drop in credit score is late or missed payments. Payment history accounts for a substantial portion of your credit score, and even a single missed payment can have a significant impact. If you fail to make payments on time, creditors may report this to credit bureaus, resulting in a drop in your credit score.

2. Increased Credit Utilization:
Credit utilization is another key factor that influences your credit score. It refers to the percentage of your available credit that you are currently using. If your credit card balances have increased drastically, your credit utilization ratio may have risen as well. Higher credit utilization can negatively impact your credit score, especially if it exceeds 30% of your total credit limit.

3. New Credit Applications:
When you submit multiple credit applications within a short period, it can raise a red flag to lenders. Each time you apply for credit, a hard inquiry is recorded on your credit report, temporarily lowering your credit score. Additionally, creditors may view frequent applications as a sign of financial instability or desperation, which can negatively impact your creditworthiness.

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4. Closing Old Credit Accounts:
Closing old credit accounts may seem like a good idea to declutter your financial life. However, it can have unintended consequences for your credit score. Length of credit history is an important factor in determining your creditworthiness. Closing old accounts shortens your credit history, which can lead to a drop in your credit score.

5. Identity Theft or Fraud:
Unfortunately, identity theft and fraud are increasingly common in today’s digital age. If someone gains unauthorized access to your financial information and uses it to make fraudulent transactions, your credit score can suffer. Unexplained credit inquiries, unfamiliar accounts, or sudden changes in your credit report may indicate identity theft or fraud, causing a significant drop in your credit score.

6. Errors on Credit Report:
Mistakes can occur on your credit report, and these errors can negatively impact your credit score. It is essential to regularly review your credit report and dispute any inaccuracies promptly. Incorrect credit limits, missed payments, or accounts that do not belong to you could all contribute to a sudden decline in your credit score.


Q: How long does it take for a credit score to recover from a sudden drop?
A: The time it takes to recover your credit score depends on the cause of the drop. Generally, minor drops due to late payments or increased credit utilization can be rectified within a few months of consistent on-time payments and reducing credit card balances.

Q: Will checking my credit score frequently cause it to drop?
A: No, checking your credit score does not impact your credit score. This type of inquiry is known as a soft inquiry and does not affect your creditworthiness.

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Q: Can a credit repair company help restore my credit score?
A: Credit repair companies advertise the ability to improve your credit score, but it’s important to exercise caution. While they may be able to assist in removing errors from your credit report, legitimate negative information will remain, and it takes time and responsible financial behavior to restore your credit score.

Q: Should I close unused credit accounts to improve my credit score?
A: Closing unused credit accounts may not be the best strategy to improve your credit score. Instead, consider keeping them open and using them occasionally to maintain a healthy credit history.

In conclusion, there are several reasons why your credit score may drop 35 points in a week. By understanding these potential causes, you can take proactive steps to maintain a healthy credit score and prevent sudden declines. Regularly monitoring your credit report, making timely payments, and keeping credit utilization low are essential habits for maintaining good credit health.