A 20-point drop in your credit score might concern you, especially with rising interest rates and increasing national credit card debt. However, experts suggest that such fluctuations are common and often temporary. Common causes for a decrease include paying off loans, applying for new credit, missing payments, closing accounts, and maxing out credit cards. Each action can lower your score by varying degrees depending on your initial credit score and the specifics of the situation. If you understand why your score dropped, such as from applying for new credit, you should not worry excessively as scores typically recover over time with responsible credit behavior. However, if the drop is unexpected, it might indicate issues like credit report errors or identity theft, which require immediate attention to resolve. Experts emphasize the importance of regularly checking your credit report, making timely payments, and being cautious with new credit applications to manage your credit score effectively.
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