What Causes Credit Score Drops Without Missed Payments?
Understand the common reasons Canadian credit scores drop even when you’ve made all your payments on time.
Credit scores can dip even with perfect payment history. Here’s why.
⚠️ Common Causes
- Utilization spikes: using high % of credit, even if paid off.
- Closed accounts: reduces average account age.
- Hard inquiries: new applications = score drops.
- Bureau differences: updates don’t always sync.
✅ What’s Normal
- Fluctuations of 20–40 points are common.
- Scores matter most over time, not month-to-month.
📌 Takeaway
👉 Don’t stress minor drops. Watch utilization, avoid hard pulls, and monitor both bureaus.
