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Why did my credit score drop by so much?

Why did my credit score drop by so much?

Why did my credit score drop by so much?

If you see a big drop in your credit score, the first thing to check on is missed payments. Your payment history is one of the biggest factors in your credit score, so if you miss a payment (with Fizz, that’ll be if you miss a payment and don’t make it for more than 30 days), it might take some work to make up for it.

If you see a big drop in your credit score, the first thing to check on is missed payments. Your payment history is one of the biggest factors in your credit score, so if you miss a payment (with Fizz, that’ll be if you miss a payment and don’t make it for more than 30 days), it might take some work to make up for it.

If you see a big drop in your credit score, the first thing to check on is missed payments. Your payment history is one of the biggest factors in your credit score, so if you miss a payment (with Fizz, that’ll be if you miss a payment and don’t make it for more than 30 days), it might take some work to make up for it.

Apr 6, 2023

Sam Lipscomb

3

min

But there are other reasons why your credit score might’ve dropped by a ton that aren’t as much cause for concern.

If you don’t have any missed payments on your credit report, an increase in credit utilization is probably to blame for the drop in your credit score. Credit utilization is the amount of available credit you use. And because your data is reported to credit bureaus once a month, it’s really a snapshot of how much credit you’re using on one day every month. So if you have $300 in available to spend balance and you spend $299 on the day your data is reported, you’ll have a nearly 100% credit utilization rate.

While it might not seem like this should be a bad thing, it is in the eyes of the credit bureaus. A 100% credit utilization rate has the potential to drop your score by a ton. But don’t worry. If your utilization goes back below the recommended 30% next month, your score is likely to pop back up.

Another reason why you might see a big drop in your credit score is if you close old account or pay off old loans. Your credit score is partially determined by the average age of your accounts and the types of credit accounts you have. Getting rid of old ones will hurt your score, but don’t worry too much - paying off credit lines that you do have on time and in full is still the best thing you can do for your score. Other fluctuations are usually just part of the process.

Sam Lipscomb

Author bio

Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.

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Fizz; 40 Wooster Street, Level 2, New York, NY 10013

ShoulderTap Technologies Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.

Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®, and Transunion® .For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the ShoulderTap Technologies Inc. d/b/a Fizz Consumer Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.

Testimonial Disclaimer: Review provided by customer to ShoulderTap Technologies, Inc. d/b/a Fizz directly. The comment above is related to individual experiences or results. Individual results may vary.

© ShoudlerTap Technologies © 2024 All Rights Reserved.


Fizz; 40 Wooster Street, Level 2, New York, NY 10013

ShoulderTap Technologies Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.

Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®, and Transunion® .For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the ShoulderTap Technologies Inc. d/b/a Fizz Consumer Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.

Testimonial Disclaimer: Review provided by customer to ShoulderTap Technologies, Inc. d/b/a Fizz directly. The comment above is related to individual experiences or results. Individual results may vary.

© ShoudlerTap Technologies © 2024 All Rights Reserved.


Fizz; 40 Wooster Street, Level 2, New York, NY 10013

ShoulderTap Technologies Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.

Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®, and Transunion® .For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the ShoulderTap Technologies Inc. d/b/a Fizz Consumer Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.

Testimonial Disclaimer: Review provided by customer to ShoulderTap Technologies, Inc. d/b/a Fizz directly. The comment above is related to individual experiences or results. Individual results may vary.