Credit scores can fluctuate daily, influenced by various factors. A drop in credit score might be concerning, but it shouldn't overshadow the urgency of addressing significant debt, as noted by credit counselor Cathy Plowman. In Canada, credit scores range from 300-900, with the average being 762 in 2023. These scores are based on payment history, outstanding debt, credit history length, new credit, and credit mix. A decrease in score could be due to missed payments, high credit utilization, too many hard inquiries, reduced credit limits, account closures, changes in credit mix, errors in credit reports, or identity theft. It’s crucial to monitor these factors and address any issues promptly to maintain a healthy credit score.
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