{"id":2103,"date":"2021-01-09T08:43:51","date_gmt":"2021-01-09T04:43:51","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=2103"},"modified":"2021-01-09T08:45:56","modified_gmt":"2021-01-09T04:45:56","slug":"credit-score-go-down","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/","title":{"rendered":"5 Reasons why your credit score go down"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you are having a habit of <a href=\"https:\/\/moneymall.ae\/credit-score\/\">checking your credit score<\/a> frequently you may experience how the credit score will change according to your credit actions. If your credit score is down for quite some time don\u2019t bother that you did something wrong. There are many factors that determine your credit score and some are the factors that more seriously drop your score.<\/span><\/p>\n<h1><span class=\"ez-toc-section\" id=\"Let_us_take_a_look_at_some_significant_reasons_that_make_your_credit_score_go_down\"><\/span><strong>Let us take a look at some significant reasons that make your credit score go down.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<figure id=\"attachment_2104\" aria-describedby=\"caption-attachment-2104\" style=\"width: 387px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2104\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2021\/01\/satisfaction-1.png\" alt=\"credit score go down\" width=\"387\" height=\"387\" \/><figcaption id=\"caption-attachment-2104\" class=\"wp-caption-text\">credit score go down<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2328cb1c081\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2328cb1c081\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#Let_us_take_a_look_at_some_significant_reasons_that_make_your_credit_score_go_down\" >Let us take a look at some significant reasons that make your credit score go down.<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#1You_missed_a_payment_of_credit_card_or_loan_for_more_than_30_days_late\" >1.You missed a payment of credit card or loan for more than 30 days late<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#2_A_derogatory_mark_was_added_to_your_credit_report\" >2. A derogatory mark was added to your credit report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#3_You_made_an_expensive_purchase\" >3. You made an expensive purchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#4_You_made_a_new_application_for_a_credit_card_or_Mortgage_loans\" >4. You made a new application for a credit card or Mortgage loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/credit-score-go-down\/#5_One_of_your_credit_limits_was_lowered\" >5. One of your credit limits was lowered<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"1You_missed_a_payment_of_credit_card_or_loan_for_more_than_30_days_late\"><\/span><b>1.You missed a payment of credit card or loan for more than 30 days late<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Making late payments on your credit card, mortgage loans or student loans will negatively impact on your credit score that affects the overall health of credit report. In general, there will be \u00a0 30 days trail time for late payments or loan payments if you exceed this trial time the Banks or Financial institutions report the same to Al Etihad credit bureau which will reflect your credit score negatively. Thus, your credit score will most likely drop.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_A_derogatory_mark_was_added_to_your_credit_report\"><\/span><b>2. A derogatory mark was added to your credit report<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you experience a drastic drop in your credit score, that means.\u00a0 a derogatory mark was added to your report. Derogatory items may include (but are not limited to):<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0 Bankruptcies<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 Foreclosures<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0 Civil judgments<\/span><\/li>\n<li>\u00a0 Settlements<\/li>\n<li>\u00a0 Cheque Returns<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you find any of them in your credit report. Then you need to take care of it immediately. your credit score will be low when compared to those who haven&#8217;t filed for bankruptcy. <\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_You_made_an_expensive_purchase\"><\/span><b>3. You made an expensive purchase<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The major factor in your credit score is credit utilization ratio which the average of total credit balances to the total credit limits. This ratio should always be kept under 30 per cent. Most of the people surprised by checking their credit score after making an expensive purchase by using a credit card, where the score gets dropped even after paying the balance in full on or before the due date.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This happens because credit card issuers typically report the credit card balance as of the last day of the billing cycle. Which is the balance that appears on your credit card statement will also appear in a credit report.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So it is better to avoid other credit card purchases for some time which help you to recover on your credit card statement.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_You_made_a_new_application_for_a_credit_card_or_Mortgage_loans\"><\/span><b>4. You made a new application for a credit card or Mortgage loans<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Each time you apply for new credit or mortgage loan. The Banks or Financial institutions will request you give a copy of your credit report to determine your creditworthiness. That lead s a hard inquiry where it cost your credit score points which drops your credit score.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cost of credit score points depends upon the number inquiries however this credit drop will remain for a short period of time, as long as you don\u2019t continue to apply for a new card.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_One_of_your_credit_limits_was_lowered\"><\/span><b>5. One of your credit limits was lowered<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A lower credit limit on your credit card will impact the same as charging on an expensive item. If you have a balance on your card with lower credit limit this will raise your <a href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/\">credit utilization ratio<\/a>. As credit utilization ratio raise your credit score will go down.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are having a habit of checking your credit score frequently you may experience how the credit score will [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2105,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[543,11,542,540,541],"class_list":["post-2103","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-score-report","tag-bad-credit-score","tag-credit-report","tag-credit-score-down","tag-credit-score-drop","tag-why-my-credit-score-dropped"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=2103"}],"version-history":[{"count":2,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2103\/revisions"}],"predecessor-version":[{"id":2108,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2103\/revisions\/2108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/2105"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=2103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=2103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=2103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}