Why does my credit score fluctuate?

Posted by Caitlin on April 14th, 2009

The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.

Q: Why does my credit score fluctuate by 3-5 points from one month to the next when I have paid accounts on time, have not applied for credit, and had no collection issues with debtors?

A: There are a few other factors that impact your credit score, aside from paying your accounts on time, applying for credit, and the absence of any delinquent accounts. As you pay off your debts, your amount of available credit grows. Conversely, when you spend more than you pay off in a particular billing cycle, your available credit shrinks. Available credit is an important factor in determining your credit score. Another important factor is the length of your credit history, which, obviously, is always growing. The longer your credit history, the better your credit score will be.

It is normal for your credit score to fluctuate by a few points, and it is not cause for concern. It is far more important to keep an eye on your credit report, in order to ensure that no fraudulent accounts are being opened in your name, and that the credit bureaus are not inadvertently reporting false information about you.

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