Why is my credit score going down?

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    StellarFi
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    Team StellarFi
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    Bad financial management leads to a bad credit score. Your credit score can vary depending on the credit reporting agency, and lenders that request your credit scores and credit reports. Your Individual criteria can determine your creditworthiness, as well as your chances of approval for various loans and credit cards.

    FICO® and VantageScore® both consider similar criteria to calculate your credit score but give each factor slightly different importance. If the factor holding the most weight is not managed well, the chances of your credit score dropping are relatively higher than criteria that hold lesser importance.

    Some of the factors that can bring your FICO score down significantly are:
    Payment history: 35%
    Amounts owed: 30%
    Length of credit history: 15%

    This is how VantageScore weighs its factors:
    Total credit usage, balance, and available credit: Extremely influential
    Credit mix and experience: Highly influential
    Payment history: Moderately influential

    In a nutshell, missing payments over a period of time, high credit utilization, and currently-owed debts contribute to a lower score.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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