{"id":34800,"date":"2024-03-18T13:09:02","date_gmt":"2024-03-18T13:09:02","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/blog\/why-did-my-credit-score-drop\/"},"modified":"2024-05-10T13:30:40","modified_gmt":"2024-05-10T13:30:40","slug":"why-did-my-credit-score-drop","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/au\/support-for-small-businesses\/why-did-my-credit-score-drop\/","title":{"rendered":"Why did my credit score drop?"},"content":{"rendered":"

Understanding the dynamics of credit scores<\/a> can often feel like navigating through a maze, with each turn influenced by various financial decisions and behaviours. For financial advisors and brokers, you\u2019re expected to demystify this journey for your clients, providing them with the clarity and guidance needed to maintain or improve their financial health.<\/p>\n

Here at Swoop, we recognise the importance of a healthy credit score in securing loans<\/a> and funding options. We\u2019ll help identify the common reasons behind a drop in credit scores, underscoring the pivotal role such insights play in crafting effective investment strategies. Through Swoop Funding’s lens, we aim to illuminate the path for finance professionals, enabling them to leverage our platform’s unique opportunities to benefit their clients.<\/p>\n

Let’s unpack the factors that can influence credit score fluctuations and how understanding these can be a game-changer in the financial landscape.<\/p>\n

What makes up your credit score?<\/h2>\n

Your credit score is composed of five separate categories with different weights. Some affect your score more than others.<\/p>\n

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  1. Payment history (35%)<\/li>\n
  2. Amounts owed (30%)<\/li>\n
  3. Length of credit history (15%)<\/li>\n
  4. New credit (10%)<\/li>\n
  5. Credit mix (10%)<\/li>\n<\/ol>\n

    6 Reasons why your credit score has dropped<\/h2>\n

    A credit score is a dynamic metric that reflects your financial reliability. Its fluctuations can impact your ability to access various financial products. For clients navigating the complexities of their financial journey, understanding the reasons behind a credit score decline is crucial.<\/p>\n

    This knowledge not only empowers them but also enables financial advisors and brokers to provide targeted advice and solutions. We will explore the following common factors contributing to a decrease in credit scores:<\/p>\n