Why has my credit score gone down?
Written byEmily Tye
Updated:Apr 24, 2026
5 min read
Your credit score can drop for many reasons. Some are obvious, like a missed payment or a new credit application. Others are harder to spot, such as your credit limit being reduced. This guide covers likely potential causes, and what to do next.
Common reasons your credit score can drop
Payment history, credit utilisation, and recent applications are all common causes of score changes in the UK. If your score has gone down, start here.
A missed or late payment
Payment history is a significant factor in UK credit scoring. A single missed or late payment can cause a noticeable drop once it’s reported.
Bear in mind that it can take a few weeks for a payment event to appear on your credit report, so a drop you notice today could actually reflect something that happened the previous month.
Consecutive missed payments are recorded as arrears on your file, with each additional month increasing the severity of the entry. A default, which is one of the more serious markers a file can carry, is typically recorded after three to six months of missed payments on the same account, though the exact timing depends on the lender and the type of account. Read more about adverse credit and what it means for your file.
High credit utilisation
Credit utilisation is the proportion of your available credit that you are currently using across all your accounts. If your combined credit card balances are high relative to your total limits, lenders see you as more stretched, and your score reflects that.
If possible, aim to keep your credit utilisation below 25%. This applies across all your accounts combined, not just on a single card.
Multiple credit applications in a short time
Each time you formally apply for credit (a credit card, a personal loan, a mortgage, or even some mobile phone contracts), the lender carries out a hard search on your credit file. Hard searches are visible to other lenders and stay on your file for up to two years.
A hard search can cause a temporary dip to your score. One or two hard searches is generally not a problem. However, several clustered together in a short period can suggest to lenders that you have been rejected multiple times or that you are in financial difficulty.
If you are shopping around for credit, using an eligibility checker beforehand uses a soft search instead, which does not affect your score.
Read more about whether applying for a credit card affects your credit score.
Closing a credit account
When you close a credit card, your total available credit falls. If your balances stay the same, your utilisation ratio rises automatically, which can push your score down. Closing your oldest account has an additional effect, as it reduces the average age of your credit accounts, which is a factor in how lenders assess your file.
Discover more in our guide to how to cancel a credit card.
Why has my credit score gone down for no reason?
If you have not missed any payments, have not applied for credit recently, and cannot see an obvious cause on your report, one of the following may be responsible.
Your credit limit was reduced
If your credit limit has been reduced, your utilisation ratio rises immediately, even without any new spending. For example, a balance of £500 against a £2,000 limit is 25% utilisation. The same balance against a £1,000 limit becomes 50%. Check your credit accounts and recent statements to see whether any limits have changed.
Small changes from regular events
Your score can change by a few points as new information comes in at different times, related to regular activity. For example, you score could drop a little when a payment is due on your credit card, and rise again when that very payment is made. These small fluctuations are nothing to worry about.
Scoring model updates
Credit reference agencies occasionally update the models they use to calculate scores. When this happens, scores can shift across the board without any change to individual financial behaviour. For example, Experian changed their scores in late 2025.
Other reasons your score may have dropped
A financial association with someone else
If you have a joint account, joint mortgage, or joint loan with another person, you are financially linked to them on your credit file. Their credit history can affect your score, and lenders may look at both files when assessing you for credit.
If that joint account is now closed and you no longer have a financial relationship with that person, you can apply for a notice of disassociation with each credit reference agency to remove the link.
Errors or fraud on your credit report
Mistakes happen. An incorrectly reported payment or data filed against the wrong person can all lower your score without any fault on your part.
More seriously, if someone has been applying for credit using your details without your knowledge, you may see hard searches and accounts you do not recognise. This can cause a significant, sudden drop and needs to be addressed quickly.
What should I do if my credit score has gone down?
Identify what changed: Check your credit report and look at your payment history, recent hard searches, account openings or closures, and any changes to your balances or limits.
Dispute any errors. If you find incorrect information, contact the relevant credit reference agency directly to raise a dispute.
Report suspected fraud. If you see accounts, hard searches, or applications you do not recognise, contact the relevant lender directly to report the activity. You should also notify the three main credit reference agencies. Finally, report the fraud to Report Fraud, the UK's national fraud reporting service.
Take steps to rebuild. Once you have identified the cause, you can take targeted action. Our guide on how to increase your credit score covers the practical steps.
How long will it take for my credit score to recover?
Recovery time varies depending on what caused the drop.
Single hard search: a single search is unlikely to affect your score significantly; what matters is multiple searches in a short period, which can concern lenders. Searches stay visible on your file for up to two years, but impact reduces as time passes.
High utilisation: Can improve quickly once balances fall.
Missed payment: Stays on file for 6 years, but impact reduces over time.
Default: Stays for 6 years; impact is significant but reduces as the event ages.
County Court Judgment (CCJ): Stays for 6 years from date of judgment. A CCJ paid in full within one calendar month of being issued can be removed from the register entirely, and subsequently removed from your credit file.
FAQs
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.
