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Why Your Credit Score is Yo-Yoing

  • Published By
  • Last Updated

    May 6th 2024

Your credit score is one of your most valuable assets. But what happens when your credit score starts yo-yoing up and down each month without you doing anything? There are several reasons why your credit score could be fluctuating. So, let's dive in and find out why credit scores mysteriously change.

1. You have made late payments

Your past payment activity is an essential factor that influences your credit score. Even though you currently may be paying on time, your credit score will still reflect your past behaviour. Unfortunately, the effect of late payments can last up to 24 months. So, if you miss one payment or are behind schedule, it can pull down a good credit score and make it fluctuate for a long time.

Pro Tip

If you’re struggling to make your payments, consider reaching out to find out what hardship assistance is available. A two-minute awkward phone call is well worth it to potentially dodge a hit to your credit file.

2. There could be errors on your credit report

Believe it or not, financial institutions are not infallible. They make mistakes, and those mistakes can affect your credit score. For example, if they accidentally report that you missed a payment when you actually didn't, your score could take a hit. This is why it's important to regularly check your credit scores on Wisr App for errors and dispute them with the appropriate credit bureau.

3. Your credit report has been updated

Sometimes when you're dealing with loans or credit card providers, it can take a bit of time for the updated information to show up. The reporting process can be a bit slow, and it might take a few months for all the necessary details to be incorporated. As a result, your credit score might go through some unexpected fluctuations that seem to come out of nowhere.

4. You’ve been a victim of identity theft

Identity theft can have a devastating impact on your credit score. If someone opens new accounts in your name and doesn’t make the payments, your credit score will take a big hit. It’s important to be vigilant about protecting your identity and to check your credit scores regularly for signs of identity theft.

5. Someone else might be affecting your score

If you have joint credit accounts with a partner or family member, their actions can affect your credit score.

Stay on top of your credit scores 

Regularly checking your credit scores can help you stay on top of any changes and correct any errors. 

Pro Tip

Get tips on how to improve your credit scores.

Now that you understand the yo-yo effect of your credit score, you can use this information to make informed decisions about your finances. 

Trust me, it's going to make all the difference.

Check your credit scores with Wisr

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Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.

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