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A good credit score shows potential lenders including landlords that you arefinancially responsible.
Credit scores range from 300 to 850.
Here are seven reasons your credit score just took a nosedive.
Also, here are tips to improve your credit score.
This is because it hurts your utilization ratio, which makes up 30% of your FICO Score.
Make it a rule of thumb to never use more than 30% of your total available credit.
This can hurt your credit score because it increases your credit utilization ratio.
You Closed a Credit Card Account
Did you just close a credit card account?
This negative impact is particularly likely if youve had the credit card account open for a long time.
Again though, this should not be a huge drop, but enough to be noticeable.
If it is not, this could negatively impact your credit score.
Inaccurate information is also a possible indicator of someone trying to steal your identity.
If you find any errors on your credit report, you better dispute them.
Put together supporting documents and include them with a letter disputing the error.
Send this plus a letter detailing the errors and file withall three credit bureaus.
If they do not correct the error, file a complaint with the Consumer Financial Protection Bureau.
Youll also see a huge drop in your credit score if you file for bankruptcy.
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