Why Does Your Credit Score Experience Fluctuations?

Applying for a new credit card.

Most people think that when you have a new card, you can use it anyway and anywhere, but that may not be the case since all cards have limits depending on how you use it. A new credit card may have a lower score, but that is subjected to change with time.

Closing all past cards makes your credit history shorter, thereby influencing your score negatively.

Payment History.

Repayment of loans and debt must be satisfactory and timely. Missed payments may not be excused by the creditor or the lending bank, which then can be recorded on your credit file, and this can hinder so many things since it is usually on file for nearly seven years. Despite a clean slate, a small slip up can cause a lot.

Credit card balances.

Credit card balances vary on a monthly basis since the card is typically in use, frequently. The less the available balance is on the card, the greater the credit utilization.

Credit utilization= total amount of debt divided by the credit limit

Some individual have several credit cards with or without balances, closing the cards without balances decreases your credit utilization. However, it is never recommended to close down a credit card, even if it holds a 0 balance.


It is what we all dread to experience in our lives; bankruptcy can cause a detrimental impact to your credit file. It’s always wise to seek an experienced attorney to help make an informed decision before filing for a Chapter 7 or Chapter 13 bankruptcy. The statute of limitations for a bankruptcy can range from 7-10 years.

Bulk purchases.

A third of the credit score is directly related to your total debts, thus encouraging large purchases or payments using your credit card to alter your credit score. This should not cause any alarm since it is normal.

Always check your credit score before purchasing in bulk just to avoid pulling down your score.

Type of credit account used.

Scores will consider your mix of credit cards, installment loans, department store accounts, mortgage loans, and more. Your credit mix normally accounts for around 10% of your credit score, therefore it’s important to apply for accounts for which you intend to use.

Identity theft.

By analyzing your credit report, you may potentially spot something unusual which may be causing the drastic change in your score, this can be a simple error which can be corrected. Identity theft can also cause the questionable information to appear on one’s report; this is a major offense which can be handled and addressed easily if an individual realizes this on time.

Length of credit history.

The length of time specific accounts have been established, including the time-frame between the oldest to the newest account. This makes up around 15% of your score and can drive down your score if one doesn’t use certain accounts for a long time, causing them to be inactive.


Despite having little or no activities using the credit card (as long as the credit card is not closed) the company might change some policies and cause a slight fluctuation in an individual’s credit score.

Half of the population today cannot identify whether or not there is a change in their credit report, but it is always ideal to sign up to a credit monitoring service to help receive updates regarding your credit.

Credit Monitoring services show why the change occurred, help stop identity theft in their tracks, and provide identity theft insurance in the event that you become victimized. Inquiring with a credit repair agency does not necessarily mean that something is wrong; you can go for advice on how to improve your credit scores and how some issues can affect your score either positively or negative, they all add value one way or the other.

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