Your credit score may have dropped by 2 points because your balances increased or you recently applied for credit or loan products. Higher balances on your credit cards or lines of credit can increase your utilization and consequently lower your score. When you apply for new credit or loan products, the issuer will perform a hard inquiry, which temporarily lowers your score by a small amount, usually 10 points or less.
You can check your credit score and find out why it changed for free at WalletHub. Also, our free simulator shows how your score will likely change due to various actions, which can help you determine the most efficient way to improve your credit.
Why Your Credit Score May Have Dropped 2 Points
- Increased balances on credit cards or lines of credit
- Recent applications for new credit cards or lines of credit
- Inaccurate information on your credit report
- Reduced account diversity
- Closed accounts
If you have good to excellent credit, derogatory marks have a greater impact on your score than if your credit is already poor. Fortunately, in either case, the effect of a negative entry diminishes over time.
You can remove negative information from your credit report if it is inaccurate by filing a dispute with the three major credit bureaus.
You can also check your credit report and access personalized credit-improvement tips for free here at WalletHub.
This answer was first published on 11/16/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
