Seeing your credit score suddenly fall can be confusing, especially when you have not knowingly missed a payment or taken on a large new debt. A credit score can change when information on your credit report changes. A higher credit card balance, a newly reported late payment, a new hard inquiry, a lower credit limit, …
Your credit card balance can affect your credit score even when you pay every bill on time. One reason is credit utilization—the amount of revolving credit you are using compared with the credit limits available to you. Credit scoring models can consider both your overall utilization and how much of each individual credit limit you …