A dropping credit score can be one of the most disheartening things that can happen, but there are some things that can be done about it. This is especially true if you are looking at getting a mortgage or other type of loan in the near future. There is absolutely no need to panic and they can be fixed in a small period of time, depending on the cause of the drop.
First off, don’t panic! This is the most important step because if you panic, then you won’t be able to think straight and that is required. Sometimes you would think that a collection account being dropped off your history would boost up your score, but it doesn’t always. However, because how the credit score is determined is actually unknown, which makes it hard to determine how things will affect it.
Check the different factors. Make sure that you are checking to see if your credit utilization is at the right level and that it’s not too high. If you check over your credit report and you will be able to determine what has caused the drop and from there you can determine how to fix it, including bringing your credit card accounts up to date.
Check your credit report. Make sure that you have checked it thoroughly and try to figure out exactly what is damaging your score even more. It could be a specific account or it could have been more than one. However, it could also be a major mistake that has screwed up your credit score, which would take a bit more time to fix.
Dispute mistakes. If there are any mistakes on your credit report that you can find, including the top credit card accounts, make sure to talk to the bureaus and ensure that the mistakes are taken care of. This includes any fraudulent charges that were made by others, especially if the credit card was in your possession the whole time. This is important and you should be checking your statements as they come in to ensure that there are no mistakes or fraudulent charges.
These are especially important if your credit information was stolen, which could also affect your credit score. If this is the case you need to make sure that you cancel your cards as soon as possible and even dispute all charges with the credit card companies. With most of the top credit card companies if have been the victim of identify theft, then you wouldn’t be liable for any of the charges, but there is a time limit on that, so make sure to regularly check your bills and credit report.
The best thing to do to keep your credit score from tanking is to just keep doing the correct things. This includes paying all of your bills on time, even those that don’t report the payments to the credit bureaus. This is important because if you can do this, then you can handle the cards. So make sure that you are paying all of your bills, keeping your minimum balances low and even continuously monitoring your credit.