A credit score is nfot just a number. It reflects your creditworthiness and determines your debt repayment capacity. A bad credit score can even lead to loan rejection. But, what causes a bad credit score? Have you ever wondered, “Why my credit score dropped?” Today, we will address these questions and look at the top 10 reasons behind a credit score going down. But before that, let us first understand what a credit score is.

1. Top 10 Major
Reasons For a Drop
In Your Credit Score

2. What does a credit score mean?
It is a three-digit number that reflects your
repayment capacity.
2

3. Key factors that adversely impact
your credit score
1
3

4. Avoiding EMI payments
■ Skipping your monthly dues lowers your credit
score.
4

5. Declaring yourself bankrupt
■ Bankruptcy reflects your poor financial condition.
5

6. Credit utilisation rate
■ Exhausting your credit limit lowers your credit
score.
6

7. Too many applications
■ Multiple loan applications make you a hungry
borrower while lowering your credit score.
7

8. Credit score upgrade
■ The credit score drops when the lender fails to
report the loan closure to the credit bureau.
8

9. Joint loan
■ A joint loan implies that the primary applicant has
a poor earning capacity.
9

10. “
In addition to the above reasons, fraudulent
loan applications, change in address, and
opening of a new account also lower your
credit history.
10

11. 11
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Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi - 110057
Tel : 18001024145
Email : customer.care@herofincorp.com
Website : https://www.herofincorp.com/
Know More : Top 10 Reasons Why Your Credit Score
Has Gone Down