why credit score decrease

Your credit score can decrease due to several key factors related to how you manage your debt and credit. The most significant reasons are:

• Late or missed payments on loans and credit card dues, as payment history is the most important factor considered by credit bureaus.
• Maintaining a high credit utilization ratio, which means using more than 30% of your total available credit limit.
• Applying for multiple new credit cards or loans in a short period, which generates several 'hard inquiries' on your credit report.
• Closing an old credit account, as this shortens your credit history and may increase your overall credit utilization.
• A reduction in your credit card limit or errors found on your credit report.