A sudden drop in your credit score—whether it’s 20 points or a dramatic 100-point decline—can be alarming, especially when you’re not sure what caused it. Your credit score is a critical piece of your financial reputation, and even small changes can affect your ability to get approved for loans, secure favorable interest rates, or qualify for credit-based services. The good news? Most score drops are explainable—and in many cases, reversible.
One of the most common reasons your score might fall is due to late or missed payments. Payment history makes up the largest portion of your credit score, and even a single payment that’s over 30 days late can have a significant negative impact. The longer the delinquency, the more severe the damage. Even if you’ve always paid on time, a one-time mistake can quickly erase years of positive history.
Another major factor is high credit utilization. This refers to the percentage of your available credit that you’re using. If you’re only making small or minimum payments while carrying high balances, your score could suffer. Credit bureaus see this as a sign of potential financial stress. Try to keep your utilization under 30%, and ideally below 10% if you’re aiming for a top-tier score.
Applying for multiple credit accounts within a short time frame can also hurt your score due to multiple hard inquiries. Each time you apply for a credit card, loan, or financing, a hard pull is recorded on your credit report. Too many hard pulls in a short period can suggest risky financial behavior and temporarily lower your score.
But here’s the good news: many hard inquiries can be disputed after a few months, especially if they were unauthorized or incorrectly reported. Along with other incorrect or outdated items, these inquiries can be challenged and potentially removed, which may improve your score.
That’s where tools like TomoBoost come in. TomoBoost offers a premium dispute feature that helps you identify and challenge errors on your credit report—ranging from incorrect payment statuses to outdated account information or unauthorized hard pulls. With expert support and a streamlined dispute process, TomoBoost makes it easier to take control of your credit health and start rebuilding your score with confidence.
Other lesser-known reasons for a credit score drop include closing old accounts, which can lower your average account age and reduce your total available credit, and changes in your credit mix, like paying off an installment loan and being left with only revolving accounts. Even events like co-signing a loan, settling a debt, or declaring bankruptcy can all result in large, often long-lasting score changes.
Lastly, always monitor for signs of fraud or identity theft. Unfamiliar accounts or inquiries on your report could mean someone else is using your information. Checking your credit report regularly and disputing any suspicious activity is essential.
While a drop of 20 to 100 points can feel like a setback, it’s also a reminder to take action. Most credit damage can be repaired with time, consistency, and the right tools. Pay your bills on time, keep your balances low, and don’t be afraid to challenge inaccuracies. Your credit score is a reflection of your financial behavior, and with smart habits and support from services like TomoBoost, you can take control and work your way back up.