Why would my credit score drop randomly?

Submitted by SenorNoods t3_10q7hzl in personalfinance

I received a notification from Experian that my credit score fell 25 points last week. This is the largest drop I’ve seen, including times where I applied for new credit lines or closed accounts. However, I have changed nothing in over a year. No new inquiries, no new accounts, no missed payments, credit utilization is lower than ever, and my installment accounts have lower balances than ever before.

By all accounts, my score should be increasing, not falling. I pulled all three reports and don’t see anything suspicious, incorrect, or missing. Does anyone know what could possibly explain this sudden, sharp drop?

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thegelatoking t1_j6or7j8 wrote

Replying to SenorNoods (#1,679,925)

25 is not a steep drop. Any number of things...Company's methods and algorithms are proprietary and not available to the public

Number of days in the month the score was calculated, change in their algorithm used to calculate the score, change in credit utilization (up or down), usage/activity, change of address, market factors, a company accidentally put an extra letter in your name so now you have an "alias" on your report, etc.

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whatsamajig t1_j6oydzy wrote

“Credit utilization is lower than ever” this could be it. 30% utilization is the sweet spot in my experience. If you bring that up a bit it would probably come back. The only benefit would be if you are planning to apply for a loan right now. Unless that’s the case, take the lower interest payment, that money saved is worth more to you.

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