Why Did My Credit Score Drop 18 Points? (Top Causes & Fixes)

Missed or late payments hurt your credit score - badly. Payment history is the biggest factor in your score (35%!), so even one late payment can drop it 50+ points. The later the payment, the worse the hit. A 30-day late mark stings, but 60 or 90 days? Brutal.

Creditors report late payments to the bureaus after 30 days. Once it’s on your report, it stays for seven years. Yes, seven. The impact lessens over time, but that stain lingers. Pro tip: Set up autopay for minimum payments to avoid accidental misses.

Good news? A single late payment won’t ruin you forever. Consistent on-time payments afterward help rebuild your score. If it was a fluke, call the lender - they might remove the late mark if you’ve been reliable. Worth a shot.

Check your report for errors (see 3 common reporting errors). Dispute mistakes fast. And if you’re juggling bills, prioritize high-impact payments like mortgages or car loans - they’re weighted heavier.

A credit utilization spike - using more of your available credit - drops your score because it signals risk to lenders. The scoring models penalize high utilization, especially above 30% of your total credit limit. If you suddenly charged a big purchase or carried a balance, your score likely took a hit.

Lower it fast by paying down balances before the billing cycle ends. Ask issuers for a credit limit increase (without a hard pull) to instantly reduce your utilization ratio. Split payments - pay half mid-cycle, the rest by the due date - to keep reported balances low. Pro tip: If you’re juggling debt, focus on the card with the highest utilization first.

Check your credit report for errors (like outdated balances) and dispute them. Set balance alerts to avoid surprises. For deeper fixes, see credit limit decreased or balance reported before payment. Move fast - utilization has no memory, so fixing it bumps your score quickly.

A recent hard inquiry can ding your credit score by a few points - usually 5-10 - but it’s temporary. Lenders pull these when you apply for credit (like a loan or card), and they stick around for two years, though most scoring models only care about the last 12 months. The drop isn’t huge, but if you’ve had multiple inquiries lately, they add up.

Hard inquiries hurt because they signal risk - you might be taking on new debt. One or two won’t wreck your score, but lenders get wary if they see a bunch in a short span. Exception? Rate shopping for mortgages, auto loans, or student loans usually counts as one inquiry if done within 14-45 days (depending on the scoring model). So time your applications wisely.

Don’t stress if one inquiry caused a small drop. The impact fades fast, and your score rebounds within months. Just avoid applying for more credit until it stabilizes. If you’re seeing a bigger dip, check for other culprits like a credit utilization spike or late payment.

Opening a new credit account can drop your score 5-20 points. Why? Lenders see you as riskier when you suddenly take on more potential debt. The hit is temporary, but it stings - especially if you’re already juggling other credit issues (like a credit utilization spike or recent hard inquiry).

Two things hurt you here: the hard inquiry (lender checks your credit) and the lower average age of accounts. New accounts drag down your overall credit history length. If you opened a credit card, your utilization ratio might also spike if you use it right away. Chill - scores usually bounce back in 3-6 months if you pay on time and keep balances low.

Pro tip: Space out new applications. One new account? Annoying but manageable. Stack several in a few months? That’s a red flag to lenders. Need deeper fixes? Check closed account surprise or balance reported before payment for related traps.

A closed account can surprise you with a credit score drop because it messes with your credit history and utilization. When you close an old or active account, you lose its available credit, which can spike your overall utilization ratio - a big factor in your score. Even worse, if it was your oldest account, shortening your credit history hurts too. Lenders like seeing long, stable credit behavior, and closing accounts cuts that short.

Check if the closed account was your only card or had a high limit - this hits harder. If your other cards are maxed out, the sudden loss of available credit makes it look like you’re using more of what’s left. For next steps, see credit utilization spike to fix the math. Keep older accounts open if you can.

A credit limit decrease stings - it’s not just about losing spending power, but how it tanks your credit score. If your issuer slashed your limit, your credit utilization ratio (the percentage of available credit you’re using) likely spiked overnight. Even if your balance stays the same, a lower limit means higher utilization, which hurts your score.

Issuers cut limits for many reasons: missed payments, high balances elsewhere, or just inactivity on your account. Some even do it preemptively during economic downturns. Check your credit report for clues - if your limit dropped but your balance didn’t, utilization shoots up, dragging your score down with it.

Call your issuer to negotiate reinstating the limit, or pay down balances fast to offset the damage. Keep usage under 30% to minimize the hit. For deeper dives, check credit utilization spike or missed or late payment - both often tie into limit cuts.

Your credit score might drop because your balance was reported before you paid it off. Credit card issuers report your statement balance to credit bureaus once a month, often before your payment due date. If you carry a high balance when they report, even if you pay it in full later, it looks like high credit utilization - which crushes your score.

To avoid this, pay down most of your balance before the statement closing date (check your billing cycle dates). This keeps reported utilization low. Even if you pay the full amount later, that initial high balance still hurts. For deeper fixes, see credit utilization spike.

An old account fell off your credit report? That’s likely why your score dropped. Positive accounts - like that long-standing credit card - boost your score by showing longevity and reliability. When they vanish (typically after 7-10 years of inactivity), your credit history shortens, and your score takes a hit.

Here’s why it stings:

• Length of credit history matters. Losing an old account reduces your "average account age," a key factor in your score.
• Fewer active accounts can raise your credit utilization ratio (see credit utilization spike for details).
• Closed accounts don’t always disappear immediately. Check if it’s a reporting error (3 common reporting errors covers fixes).

What to do next:

• Pull your reports (AnnualCreditReport.com) to confirm the account’s status.
• Call the issuer. Some will reopen closed accounts if you ask nicely.
• Keep other old accounts active. Use them for small purchases to avoid dormancy.

No luck? Focus on building history with new accounts - responsibly. Time will soften the blow.

Reporting errors on your credit report can tank your score out of nowhere - here’s what to watch for. The big three culprits are incorrect late payments, wrong account details, and duplicated debts. These mess-ups are more common than you’d think, and fixing them fast is key. Don’t let lazy reporting cost you points.

First, verify late payments marked in error. Lenders sometimes flub dates or misreport one missed payment as a 90-day delinquency. Pull your full credit report (it’s free weekly) and match payments to statements. Dispute errors with screenshots - credit bureaus must remove mistakes within 30 days. This alone can claw back 20+ points.

Next, scrutinize account balances and limits. A $500 balance reported as $5,000 wrecks your utilization ratio. Same goes for closed accounts showing as open or missing higher limits that help your score. Demand corrections in writing - creditors often fold when challenged. Check the credit utilization spike section if this feels familiar.

Duplicate debts are sneaky. A single medical bill might appear twice under different collectors, doubling your apparent debt load. Spot repeats by comparing account numbers and original creditor names. Dispute both the copycat entry and the original if it’s outdated. Pro tip: Medical debt under $500 shouldn’t even be on your report now.

Credit bureaus mix up identities shockingly often - especially if you share a name with family. John Smith Jr.’s car loan might land on your report. Freeze your credit if you spot accounts you never opened. The identity theft red flags section digs deeper here. Always confirm personal details like SSNs and addresses match.

Document everything. Save dispute letters, screenshot confirmations, and note rep names/dates. Follow up weekly - bureaus drag their feet. Persistent errors? File a CFPB complaint; that lights a fire under them. Most fixes take 30 days, but your score rebounds fast. Now go check those reports.

An authorized user status change can drop your credit score if the account you’re removed from had a strong payment history or low credit utilization. Credit bureaus factor in the age, usage, and payment behavior of all accounts on your report - even those where you’re just an authorized user. Lose access to a well-managed account? Your score might take a hit.

Here’s why it stings:

• Credit age shortens: If the removed account was old, your average account age drops, hurting your score.
• Utilization spikes: Losing that card’s limit could raise your overall credit utilization ratio (bad news if you’re already near 30%).
• Payment history gap: That account’s flawless record no longer boosts your score.

Check if the primary user closed the account or just removed you - it matters. If the account’s still open but you’re booted, your score might rebound faster. For deeper dives, see credit utilization spike or closed account surprise.

Newly reported medical debt can tank your credit score fast - sometimes by 50+ points - because it’s treated like any other collection account. Credit bureaus don’t differentiate between medical bills and other debts, so even a small unpaid balance can hurt. The drop happens as soon as the debt hits your report, usually 180 days after the bill goes unpaid. Check your report for errors - medical billing mistakes are common, and disputing them can reverse the damage.

Medical debt under $500 won’t show up on credit reports starting 2023, thanks to new rules, but older or larger balances still will. If your score dropped recently, pull your report to see if a medical collection just landed. The impact lessens over time, but it’ll sting for up to seven years unless resolved. Paying it doesn’t erase it, but some newer scoring models ignore paid collections, so it’s worth settling.

Hospitals and providers often sell debt to collectors, who report aggressively. If you spot a new medical collection, act fast: call the provider to confirm the debt and negotiate a "pay-for-delete" (where they remove it from your report upon payment). Not all collectors agree, but it’s worth a shot. If the debt’s legit but unaffordable, ask about financial aid - many hospitals forgive bills for qualifying patients.

Dispute inaccuracies with the credit bureaus immediately - errors like wrong amounts or duplicate listings are common. If the drop seems unfair, dig into credit utilization spike or missed payment to rule out other culprits. Medical debt sucks, but you’ve got options.

Divorce or joint account changes can tank your credit score fast. If you’re removed from a joint account, its history vanishes from your report - poof - like it never existed. That hurts if it was an old account or had a perfect payment record.

Closing joint accounts during divorce? Bad move. It slashes your total credit limit, spiking your utilization ratio. Suddenly, that 30% balance looks maxed out, and your score takes a hit.

Protect yourself: freeze joint accounts before separating, or negotiate who keeps what. Check your report afterward - errors happen. For deeper dives, see authorized user status changed or credit utilization spike.

Spotting identity theft red flags early saves you months of headaches. Here’s what to watch for like a hawk:

• Mystery accounts or charges: Check your credit report (yes, the free one) for accounts or loans you didn’t open. Surprise credit cards? Nope. That’s fraud.
• Denied credit out of nowhere: If you’re suddenly rejected for a loan or card despite good credit, someone might be messing with your finances.
• Missing mail or bills: No bank statements? Odd. Thieves often reroute mail to hide their tracks.

Next, dig into the sneaky stuff:

• Debt collectors calling about unknown debts: If they’re chasing you for a payday loan you never took, that’s a blazing red flag.
• Weird alerts from your bank: Login attempts from Timbuktu? Lock it down. Fraudsters test accounts with small transactions first - watch for random $1 charges.
• Your info on the dark web: Sites like Have I Been Pwned alert you if your email or password pops up in a breach. If it does, change everything.

Finally, trust your gut. If something feels off, it probably is. Freeze your credit, report fraud to the FTC, and check for errors like a missed or late payment dragging your score down. Up next: tackling credit utilization spikes - another common score killer.