Lesser Known Reasons Why Your Credit Score Is Dropping

Financial Fitness Podcast

Your credit score is one of the biggest indicators of your financial health. Unfortunately, awareness around the concept of credit score and the critical importance it holds in one’s life is low in India. Even those who know about Credit Scores often ignore or undermine them.

Click on this link to get full information about Lesser Known Reasons Why Your Credit Score Is Dropping

: https://www.apsense.com/article/lesser-known-reasons-why-your-credit-score-is-dropping.html

Your Credit Score represents your financial trustworthiness and it is one of the major factors that banks look at when you apply for a loan or a credit card. A strong credit score should be maintained at all times, so that you can borrow money in emergency situations or when looking to meet one of your financial life goals like buying a home or a car. Hence, it’s important that you keep monitoring your Credit Score regularly.

Many times you would see a dip in your credit score, despite having paid your monthly EMIs and credit card bills in full, wondering what went wrong. While many are aware of the common factors that determine a high credit score, here are certain lesser-known factors that can lead your Credit Score to fall.

1. You are Late with Your Credit Card and EMI Payments

It is not just about paying your credit card bills and EMIs, but about paying them on time (before the due date). If you are missing the due dates regularly, it is likely to hit your credit score.

2. You are utilizing the entire Credit Card limit

3. You apply for every new credit card in the market

4. You are new to credit

5. You Closed An Old Credit Account

6. Error In Your Credit Score And Report