7 reasons your Credit Score has Dropped

1. You Have Late or Missing Payments

2. Your Credit Utilization Has Increased

3. You Closed a Credit Card

4. You applied for a new credit card

5. You might have applied for a loan or mortgage 6. Information on your credit card report might be inaccurate

7. you might got bankrupt recently

Credit scores are divided into different scoring ranges. The FICO Score is one of many scoring models that uses a range of 300 to 850.

In that model, scores above 800 are considered exceptional, while anything above 700 is typically considered good.

Scores under 669 are deemed fair or poor. According to Experian data, the average FICO Score in the United States in 2020 was 710.

the actual benefit of a good credit score is faster loan approval with a large sum of money and lower interest rate in long term, and vice versa for a bad credit score.

you can check this story to learn how to increase your credit score quickly