Why did my scores drop?

Seeing your credit scores fall can be unsettling — especially when you are not sure what changed. In most cases, a sudden drop traces back to a few specific factors that show up on your credit report. Understanding them is the first step toward getting your scores back on track.

4 reasons your scores can drop

1. New derogatory items on your credit report. Negative marks carry a lot of weight. Common examples include:
   • Late payments
   • Collections
   • Repossessions
   • Foreclosures
2. Added debt. Taking on new balances raises how much of your available credit you are using:
   • Maxed-out or high-balance credit cards (high utilization)
   • A new personal loan or auto loan
3. Credit cards were closed. Closing an account lowers your total available credit and can shorten your credit history — both of which can pull scores down.
4. New hard inquiries. Every time you apply for new credit, a hard inquiry is added to your report, which can cause a temporary dip.

What you can do about it

Some score movement is normal, but you are not powerless. A few steps that tend to help:

• Pay down high credit-card balances to lower your utilization.
• Keep older accounts open when it makes sense, to preserve your credit history.
• Make every payment on time going forward.
• Review your credit report for inaccurate or questionable negative items — and dispute them.

That last point is where we come in. MSI Credit Solutions leverages your consumer rights and works on your behalf to challenge questionable negative items on your credit report, so your scores have room to recover.