Although Borrowell doesn’t calculate your credit score, we understand credit scores can be complex and want to help you understand what your credit score means along with the reasons it may have decreased.
Here are the five main factors that impact your overall score and some common reasons why your credit score may have dropped:
- Your payment history (35% of your score)
- You made a late payment.
- Your unpaid account was sent to collections.
- Your credit utilization which is how much credit you've used out of what's available to you (30% of your score)
- Your credit utilization ratio is too high.
- Your credit utilization ratio is 0.
- The length of credit history (15% of your score)
- You canceled a tradeline (credit card, loan, mortgage)
- The number of hard inquiries/credit checks when you apply for credit (10% of your score)
- You recently applied for new credit.
- Your credit variety: mix of loans, credit cards, phone bills, mortgage etc. (10% of your score)
- An account has dropped off your credit report after being closed for 7 years.
Please also keep in mind that depending on when you make a payment, when the company reports it to Equifax and when Equifax makes the update to your file in comparison to when you received your refreshed score from Borrowell, your score could fluctuate even if you haven't done anything differently.
For more information that you may find helpful, please see the related below blog posts.
Why your score may have dropped.
What is a Credit Utilization Rate?