why does credit score go down

A credit score often goes down because of financial actions that indicate a higher risk to lenders. The primary factors contributing to a drop are:

• Missing or delaying payments on any loan or credit card.
• Increased credit utilization, which means using a high percentage of your total available credit limit.
• Applying for multiple new loans or credit cards in a short time, leading to numerous hard inquiries.
• Defaulting on a debt or having a debt settled for less than the full amount.

Maintaining a consistent repayment history and managing your credit limits responsibly are key to protecting your score.