If your credit score drops by less than 10 points, there’s typically no need to worry as scores naturally fluctuate. But a larger drop may signal issues like new credit card charges impacting scores, especially if balances are high. Missing payments can lead to significant drops, so prioritize on-time payments.

Applying for new loans or credit cards may cause a slight dip in credit scores, but multiple applications for the same loan type are counted as one. Paying off a loan may lower scores temporarily due to credit mix impact, but points can be regained over time.

Closing credit card accounts can also lead to score drops, affecting credit utilization ratios. Collections, bankruptcies, or errors in credit reports can significantly impact scores. To improve scores, focus on timely payments and reducing credit card balances. Regularly checking credit reports is crucial to catch any errors early.

Read more at Yahoo Finance: 8 common reasons why your credit score could have dropped