Why Did My Credit Score Drop For No Reason?

Why did my credit score drop for no reason? That's a question many people ask, since credit scores may seem to move up and down without having a clear reason for their movements.

Understanding the reasons behind an unexpected credit score drop allows you to take active steps to bring it back up. In this guide, we'll unravel the mysteries of credit score movements and equip you with the knowledge needed to improve it. Additionally, we'll explore financing options that don't hinge on a credit score, such as securing car title loans online. 

Gain transparency on the factors prompting credit score changes and discover strategies to develop your creditworthiness.

Why Did My Credit Score Drop For No Reason? 

Think about the following scenarios as possible answers to why did my credit score drop for no reason: 

1. Your Debt-To-Income Ratio May Have Changed

The amount of money you owe to creditors is your debt, and your income is how much money you claim to make each year. Most lenders will ask about your gross annual earnings before offering credit to establish your ability to repay. But if your income is too low to handle the money you owe, your credit score may drop by several points. 

TIP: Go in and update your income each time it increases to keep your debt-to-income ratio accurate. 

2. You Could Have Too Many Hard Inquiries On Your Report

Did you know that the mere act of asking for credit can damage your scores? Applying for financing of any kind puts a hard inquiry on your credit report. And while one or two may not do much harm, asking too many lenders for cash makes you look financially desperate. So, creditors are less likely to give you money if you constantly seek it. 

TIP: Limit your inquiries to less than 3 every six months and try to cluster your searches as much as possible. 

3. An Unpaid Creditor Might Have Reported Your Debt Late

Creditors can have up to 90 days to report activity to your credit account, which means your scores could drop unexpectedly in the future. If you know you have old debts to pay, don't ignore them until they go away. Do your best to pay everything off or set up a payment plan with the lender to prevent more negative marks on your report. 

TIP: Contact your lenders to determine if you have any latent debts that you might have forgotten about. 

why did my credit score drop for no reason and how to boost it

How To Boost Your Credit Score Fast 

Finding the answer to why did my credit score drop for no reason is only half the battle. Now, you need to know how to boost your score back up as quickly as possible. So, here are 3 steps to get you started: 

  1. Look at your credit report. You get one free print-out of your report each year, so take advantage of that. 
  2. Submit disputes. If you see something incorrect or fraudulent, you have a right to get it fixed promptly. 
  3. Pay off major debts. Start with the oldest and largest debts first to increase your score in the fastest manner. 

These steps should help your score recover. But what if you need money urgently and you don’t have the time to wait until the changes reflect on your score?

Gladly, there are options out there that are very credit-friendly and don’t even require a high score. One example is car title loans in Texas, which are a fast way to get money quickly when you need it.

NOTE: You must be at least 18 years old to get car title loans online in the state of Texas. 

How To Get Car Title Loans Online 

Car title loans online are simple and convenient to acquire and can be yours in less than a day.

As we mentioned, they don’t depend on your credit score, which separates them from traditional banks. In addition, you don't need lots of income or a down payment to qualify.

The best part is that you get to keep possession of your vehicle as long as the loan remains in good standing.

Let’s have a closer look at how to get one today: 

car title loans online

Step 1 - Submit Your Request

Texas Car Title and Payday Loan Services, Inc. has a short intake form to help you get started from the comfort of your own home. Just answer a few simple questions and an agent will review the information promptly.

After that, they'll set up a time to complete the rest of the process at your earliest convenience. The agent can either travel to your location or meet you at one of our many stores. 

Qualified borrowers can get direct deposits into their designated bank account within 24 hours or less. Best of all, you may qualify for up to $15,000, depending on the value of your vehicle, so ask your agent for more information. 

Step 2 - Provide Your Required Items

This is what you'll need to get approved for an online car title loan in Texas through Texas Car Title and Payday Loan Services, Inc.:

  • Proof of income.
  • The lien-free title of your vehicle (listed in your name).
  • The vehicle itself for a quick inspection.
  • Your government-issued photo ID or driver’s license.

Work With Credit-Friendly Loan Options

Finding the answer to why did my credit score drop for no reason may be a bit tricky, but the answer would certainly help you recover from the drop.

However, the credit system isn’t perfect, and not all lenders lean on it when deciding who’s eligible for their loans. When you need money urgently, consider Texas title loans for their ease of acquisition. Submit an online form today to learn more.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.