Why Did My Credit Score Go Down When Nothing’s Changed?

 You check your credit score, expecting it to be the same or maybe even higher. But instead, it's dropped. And now you’re left wondering: “Why has my credit score gone down when nothing’s changed?”

Don’t worry. This is one of the most common questions we hear, and you’re not imagining it. Your credit score can fall even when it feels like you haven’t done anything differently. In this blog, we’ll walk you through the reasons why this might happen, what it means, and what you can do about it.

👉 First things first, credit scores change all the time

👉 Why credit score drops matter, and when they don't

👉 What should I do if my credit score goes down?

👉 It's just a score, not a sentence

First Things First, Credit Scores Change All The Time

Your credit score isn’t fixed. It’s like a live snapshot that updates every time something changes in your credit report, even small stuff. These changes can be triggered by things you’re not even aware of, and sometimes the drop is temporary or not a big deal in the grand scheme of things.

If your credit score is down, take a breath. It’s usually explainable and fixable.

1. Your Credit Utilisation Might Have Increased

One of the most common reasons for a dip is credit utilisation, which is how much of your available credit you’re using. Even if you haven’t borrowed more money overall, your balance on one credit card going up (even slightly) can cause your score to take a small hit.

Example:
If your card limit is £1,000 and your balance creeps from £200 to £700, you’ve gone from 20% to 70% usage. That looks riskier to lenders, and your score may drop in response.

💡 Tip: Try to keep your usage below 30% of your available credit, where possible.

2. A Lender Has Updated Your Report

Sometimes, your credit score drops after a lender updates your record, for example, reporting a slightly late payment, a change to your credit limit, or even just updating your balance at the wrong time of month.

Even if your habits haven’t changed, the timing of a lender’s update can make it look like they have.

3. A Credit Account Closed (Or Was Paid Off)

Yes, this one sounds backwards, but closing an account or paying off a loan can lower your credit score in the short term.

Here’s why:

• You’ve reduced your overall available credit (which affects utilisation)
• You’ve shortened your credit history (especially if it was an old account)

That doesn’t mean you shouldn’t pay things off, just know your score might dip slightly before it climbs again.

4. A Hard Credit Check Was Run

If you’ve applied for something recently, a phone contract, car finance, or even a store card, there might be a hard search on your credit report. These checks can cause a small, temporary drop, even if you were accepted.

💡 Tip: Multiple applications in a short space of time can signal risk to lenders, so try to space them out where you can.

Thinking of applying for car finance but worried about your score? At Marsh Finance, finding out if you’re conditionally approved won’t impact your credit rating. Start your application here and get a quote with no pressure.

5. A Missed or Late Payment Was Reported

This one’s more serious. If a lender has reported a late or missed payment, your score can drop, even if it was a mistake or just a few days late.

If you’re not sure, check your credit report. It will show any new negatives. If it’s wrong, you can dispute it with the credit reference agency and ask the lender to correct it.

💡 Tip: Set up direct debits for at least the minimum payment to protect your score from simple slip-ups.

6. An Old Default or Debt Is Still Showing

You might have dealt with a debt years ago, but if the default date is still within the last six years, it can still impact your score. Sometimes, old debts get sold to a different company, which triggers new reporting activity and confuses people.

Check the date of default. If it’s over six years old, it should no longer appear. If it’s still there, it might just be a recent update causing a short-term wobble.

7. There’s a Mistake or Fraud on Your Report

Sometimes a drop in your credit score is down to an error or even identity fraud, like a credit account you don’t recognise. If something doesn’t look right, get in touch with the credit reference agency (like Experian, Equifax or TransUnion) straight away.

💡 Tip: Register for credit report alerts to get notified of any sudden changes or new activity.

Why Credit Score Drops Matter, And When They Don’t

A small drop here and there isn’t unusual and doesn’t mean you’ve done anything wrong. Credit scores naturally go up and down.

But if you’re planning to apply for car finance, a mortgage, or a loan, it’s a good idea to keep your score as healthy as possible. Even a few points can affect your chances or change the rate you’re offered.

Want to know more? Read our guide to how your credit score affects a car finance application.

What Should I Do If My Credit Score Goes Down?

Here’s a quick checklist to help you get back on track:

✅ Check your credit report for errors or unexpected updates
✅ Keep your balances low relative to your credit limits
✅ Don’t close old accounts unless you have to
✅ Avoid applying for lots of credit at once
✅ Pay on time, every time, even if it’s just the minimum
✅ Ask for help if you're struggling with your finances

It’s Just A Score… Not A Sentence

Your credit score is just one part of your financial picture. And the good news? It’s not permanent. Most score drops can be recovered over time with small, consistent steps.

If you’re applying for car finance and you’re not sure where you stand, check out our blog on understanding credit scores, or get in touch with the Marsh Finance team. We’re here to help, not judge.

Worried your credit score might hold you back from getting car finance?

At Marsh Finance, we look at the bigger picture, not just the numbers. If your score has taken a dip but you're ready for a new car, we may still be able to help.

✅ Quick application
✅ Soft search won’t harm your credit score
✅ Personal support if you’re unsure where you stand

Apply for car finance today and let’s see what’s possible, together.

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