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This question is one of the most common for most of the Americans. There are several reasons why credit score can drop. Obviously, a big debt amount on the credit card can be the reason of the credit score decline and maybe you need to consider to settle your credit card debt. Credit card utilization rate is an important factor of the state of the credit score. Overusing the credit can lead to the decrease of the three-digit number.

Payment history is the other factor that influences the credit score. A borrower, who skipped at least one payment, will definitely lose points. The solution is simple – you should get used to the on time responsible payments.

Different kinds of infringements such as tax liens, accounts in collections and bankruptcies can also impact the decline of the credit score. Unfortunately, the influence of such torts is substantial as they show the inability to manage the finances and debts.

Opening too many accounts or opening and closing accounts during the short period can also be the reason for the credit score decline. Hard inquiries show the irresponsible attitude to the credit history and unreliable creditworthiness. Most of the debt calculators offer the outstanding function to calculate the risk of credit score decrease after particular actions.

Here is a debt problem guide for you.