Monitor your credit report - credit score dropped for no reasons

Reasons Why You Should Monitor Your Credit Report :

 Here are a few common errors that you must look out for:
  • A new address or phone number that is not yours.
  • Error in the spelling of your name.
  • Unknown accounts owned by someone with a name that’s similar to yours.
  • The same debt or payment failure note listed multiple times.
  • Incorrect dates.
  • Mistakenly reported delinquency or late payment.
  • False record of the current balance.
  • Incorrectly recorded credit limit.
  • Closed accounts that are marked as open.
  • Accounts appearing various times with different creditors listed.
  • Unauthorized accounts.
  • Statements in which you are an authorized user, but you are marked as the primary user.
Why did my credit score dropped ?
There can be a few surprising but very pertinent reasons for a sudden fall in your credit score. Let us dig deep into them.

Old and Inactive Accounts

Have you ever found an interesting promotional offer in a shopping mall or a retail outlet and applied for a credit card? Well, I did at some point in time. And being my ever-forgetful self, I had conveniently forgotten about it.

A New Hard Inquiry

My mobile phone connection was pathetic, and I had decided to switch over to a different teleservice provider. A gentleman from the new phone company visited my house to get all the paperwork done. There were a handful of forms to be filled, read, and signed. As I was running late, I had blindly signed wherever the person asked me to. Unknowingly, I had permitted the company to conduct a credit check to ensure that I have the financial capability to afford their services. In short, a hard inquiry was made without my knowledge.

Paying off a Loan

This one was my strangest finding. That feeling of satisfaction and relaxation when you finally settle a loan isn’t relaxation in the financial world. You need to have a variety of accounts for maintaining a good credit score. If you pay off a loan, the loan account is closed, and you lose an account. Your credit score drops inevitably.

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