Tassie Milne
General Manager - ClearScore Canada
7 reasons why your credit score has gone down
21 August 2026
12 min read
Contents
Key takeawaysWhy has my credit score dropped?Reason 1: Late or missed paymentsReason 2: High credit utilisationReason 3: A change of address on your credit reportReason 4: New credit applications and hard inquiriesReason 5: Short credit history or new accountsReason 6: Collections, bankruptcies, and other negative marksReason 7: Limited credit mix or too few accountsUsing ClearScore to monitor and improve your scoreFrequently asked questionsDisclaimerCredit scores can drop for a number of reasons. Here's what may be behind yours, and how ClearScore can help you track your progress.
Key takeaways
Payment history has the biggest impact on your score. Even one late payment can cause a noticeable drop.
Using a large portion of your available credit can signal risk to lenders and lower your score.
Applying for new credit too often, or having a short credit history, can also work against you.
Negative marks like collections or bankruptcies stay on your report for several years, but their impact fades over time.
A healthy mix of credit types can support a stronger score.
ClearScore gives you free access to your credit score and report, so you can track changes and spot issues early.
Why has my credit score dropped?
Credit scores change regularly based on the information in your credit report. A drop does not always mean something has gone wrong. It often reflects a recent change in your financial activity, like a new account, a missed payment, or an increase in your outstanding balances.
Understanding what drives these changes can help you make informed decisions about your finances. Below are the seven most common reasons why your score may have gone down, along with practical guidance on what you can do.
Reason 1: Late or missed payments
Payment history is the single biggest factor in how your credit score is calculated. It accounts for roughly 35% of your overall score. When a payment is reported late, usually after 30 days or more, it can have a significant effect on your score.
The longer a payment goes unpaid, the greater the impact. A payment that is 90 days overdue will typically affect your score more than one that is 30 days late.
How long do late payments stay on your report?
In Canada, late payments and collections can remain on your Equifax or TransUnion credit report for up to six or seven years. However, their influence on your score tends to lessen over time, especially if you build a consistent record of on-time payments going forward.
You cannot remove accurate late payment information from your report before this period ends. What you can do is focus on the payments you make from today onwards.
What you can do
Set up automatic payments or calendar reminders so bills are paid on time.
If you have missed a payment, bring the account up to date as quickly as possible.
Check your credit report regularly to make sure all payment information is accurate.
You can check your credit report for free with ClearScore. Monitoring your report regularly can help you spot any errors and track your payment history over time.
Reason 2: High credit utilisation
Credit utilisation refers to how much of your available credit limit you are currently using. It is the second biggest factor in your credit score, accounting for around 30% of the total.
If your balances are high relative to your credit limits, lenders may see this as a sign that you are over-reliant on credit. This can lower your score even if you are making your payments on time.
What is a healthy utilisation level?
Utilisation level | Approximate range | What it may signal to lenders |
|---|---|---|
| Utilisation level Good | Approximate range Below 30% | What it may signal to lenders Manageable use of available credit |
| Utilisation level Fair | Approximate range 30% to 60% | What it may signal to lenders Some reliance on credit; may raise questions |
| Utilisation level Poor | Approximate range Above 60% | What it may signal to lenders High dependency on credit; considered higher risk |
These ranges are a general guide. Individual lenders may assess utilisation differently.
Common causes of high utilisation
An unexpected expense that pushed balances up
Reduced income making it harder to pay down balances
Closing a credit card, which reduces your total available credit
What you can do
Try to pay down balances where you can, prioritising accounts with higher utilisation.
Avoid closing older credit cards unless necessary, as this reduces your total available credit.
If your limit has changed, check whether this was reported accurately on your credit report.
ClearScore can help you track your credit usage over time. See your credit report and score for free to understand where you currently stand.
Reason 3: A change of address on your credit report
Moving home does not directly lower your credit score. However, if your new address is not updated correctly across your credit accounts and your credit report, it can create inconsistencies that affect how lenders verify your identity.
Address mismatches can sometimes trigger fraud flags or result in delayed verification when you apply for credit. This can make the application process more complicated, even if your score itself is unaffected.
How to update your address on your credit report in Canada
Contact Equifax Canada and TransUnion Canada directly to update your address on file.
Update your address with all existing lenders, banks, and creditors so your records are consistent.
Check your credit report after moving to confirm the update has been applied correctly.
Does a change of address affect your credit score? Myths vs. facts
Myth | Fact |
|---|---|
| Myth Moving home lowers your credit score. | Fact Your address is not a scored factor. It is used for identity verification only. |
| Myth Address mismatches can cause your application to be rejected. | Fact Inconsistencies can slow down verification, but they do not directly affect your score. |
| Myth You only need to update your address with one agency. | Fact It is best to update Equifax Canada and TransUnion Canada separately, as they hold independent records. |
Protecting your identity when you move
Moving home can create a window of vulnerability where post is redirected and personal details are in transition. Using an identity monitoring service during this period can help you stay aware of any unusual activity.
ClearScore Protect monitors the dark web and alerts you if your personal details appear somewhere they should not. Find out more about ClearScore Protect.
Reason 4: New credit applications and hard inquiries
Each time you apply for credit, the lender typically performs a hard inquiry on your credit report. This is a formal check that is recorded and can temporarily lower your score. Hard inquiries account for around 10% of your credit score.
A single hard inquiry will usually only have a small effect. However, multiple applications in a short period can signal to lenders that you may be experiencing financial difficulty, which can lower your score more noticeably.
Hard vs. soft inquiries
Inquiry type | What it involves | Does it affect your score? |
|---|---|---|
| Inquiry type Hard inquiry | What it involves Triggered when you apply for credit (e.g., a loan, credit card, or mortgage) | Does it affect your score? Yes, temporarily |
| Inquiry type Soft inquiry | What it involves Triggered when you check your own score or when a lender does a background check | Does it affect your score? No |
How many applications are too many?
There is no fixed limit, but applying for several products within a short window can raise concerns for lenders. As a general guide, spacing out applications by at least a few months can help limit the cumulative impact on your score.
What you can do
Use eligibility checkers before applying. These use soft inquiries and do not affect your score.
Only apply for credit when you genuinely need it.
Allow some time between applications to let any impact on your score settle.
With ClearScore, you can explore loan and credit card offers tailored to your credit profile, using soft eligibility checks that do not affect your score.
Reason 5: Short credit history or new accounts
The length of your credit history accounts for around 15% of your credit score. Lenders generally prefer to see a longer track record of responsible borrowing, as it gives them more information to assess your reliability.
Opening a new account can lower your score in two ways: it reduces the average age of your accounts, and it typically triggers a hard inquiry at the point of application.
Building credit history from scratch in Canada
If you are new to Canada, or have recently started using credit for the first time, your credit file may be thin. This can make it harder to access certain products, even if you manage your finances well.
A secured credit card can be a useful starting point, as it allows you to build a payment history with a lower level of risk.
Being added as an authorised user on someone else's account may help establish a credit history, though lenders assess this differently.
A credit builder loan, offered by some Canadian credit unions, is designed specifically to help people build a credit history over time.
Why closing old accounts can lower your score
When you close a credit account, particularly an older one, it reduces both your total available credit and the average age of your accounts. Both of these factors can negatively affect your score. It is generally worth keeping older accounts open if you are not being charged fees for doing so.
What you can do
Check your credit report to see how your credit history is building over time. You can track the age of your accounts and monitor your progress as your history grows.
Reason 6: Collections, bankruptcies, and other negative marks
Serious negative marks, such as accounts in collections, court judgments, or bankruptcies, can have a significant and lasting effect on your credit score. These are recorded on your credit report and can affect your ability to access credit for several years.
Types of negative marks in Canada
Collections: An unpaid debt that has been passed to a collection agency.
Court judgments: A legal ruling against you related to an unpaid debt.
Consumer proposals: A formal agreement to repay a portion of your debts, arranged through a Licensed Insolvency Trustee.
Bankruptcy: A legal process that discharges most debts, but has a significant impact on your credit profile.
How long do negative marks stay on your report?
Type of mark | Equifax Canada | TransUnion Canada |
|---|---|---|
| Type of mark Late payments | Equifax Canada Up to 6 years | TransUnion Canada Up to 6 years |
| Type of mark Collections | Equifax Canada Up to 6 years from last activity | TransUnion Canada Up to 6 years from last activity |
| Type of mark Consumer proposal | Equifax Canada Up to 3 years after completion | TransUnion Canada Up to 3 years after completion |
| Type of mark First bankruptcy | Equifax Canada Up to 6 years after discharge | TransUnion Canada Up to 6 years after discharge |
| Type of mark Second bankruptcy | Equifax Canada Up to 14 years after discharge | TransUnion Canada Up to 14 years after discharge |
Retention periods may vary in some provinces. Contact Equifax Canada or TransUnion Canada directly for the most current information applicable to your situation.
Disputing errors on your report
Negative marks that are accurate cannot be removed before their retention period ends. However, if you believe there is an error on your report, you have the right to dispute it with the relevant credit bureau.
Reason 7: Limited credit mix or too few accounts
Credit mix refers to the variety of credit types you hold, such as a combination of revolving credit (like credit cards) and installment credit (like a car loan or mortgage). It accounts for around 10% of your credit score.
Having only one type of credit, or very few accounts overall, can limit the information available to lenders when assessing your application. It does not mean your score will be low, but a broader mix can support a stronger profile over time.
Revolving vs. installment credit
Credit type | Examples | How it works |
|---|---|---|
| Credit type Revolving credit | Examples Credit cards, lines of credit | How it works You borrow up to a limit and repay flexibly. Your balance changes each month. |
| Credit type Installment credit | Examples Car loans, mortgages, personal loans | How it works You borrow a fixed amount and repay it in set instalments over an agreed term. |
What you can do
You do not need to open new accounts purely to improve your credit mix. Adding credit you do not need can create unnecessary risk. However, if you are considering a product you genuinely need, choosing one that also supports your credit mix can be a positive side effect.
Using ClearScore to monitor and improve your score
Keeping an eye on your credit score and report is one of the most practical things you can do. Regular monitoring helps you spot changes quickly, identify potential errors, and track the impact of your financial decisions over time.
Free credit score and report access
ClearScore gives you free access to your credit score and report for life, sourced from TransUnion Canada. You can check your score as often as you like, with no impact on your credit file.
Protect your identity
ClearScore Protect scans the dark web and monitors your credit report for signs of suspicious activity, alerting you if your personal details may be at risk.
Explore personalised offers
ClearScore shows you credit cards, loans, and car finance options that may be suitable based on your credit profile, using soft eligibility checks. This means you can explore your options without affecting your score. When ClearScore mentions pre-approval, please note: pre-approval doesn't always guarantee acceptance and is subject to lenders' checks of your credit status.
Frequently asked questions
Why did my credit score drop when I did not miss any payments?
There are several reasons your score can drop even with a clean payment record. These include an increase in your credit balances, a new hard inquiry, the closure of an old account, or simply a change in how the credit bureau has calculated your score based on updated information.
How long does it take for a credit score to recover?
There is no fixed timeframe, as recovery depends on the reason for the drop and the steps you take. Minor drops from a single hard inquiry may resolve within a few months. More significant marks, such as missed payments or collections, can take longer to recover from, though consistent positive behaviour over time can help rebuild your score.
Can I dispute information on my credit report in Canada?
Yes. If you believe there is an error on your Equifax or TransUnion report, you can submit a dispute directly with the relevant bureau. Both Equifax Canada and TransUnion Canada have formal dispute processes in place. You are entitled to a free copy of your credit report directly from each bureau at any time.
Does checking my own credit score lower it?
Not with ClearScore. Checking your own credit score is a soft inquiry and has no impact on your score. You can check your score as often as you like using ClearScore without any effect on your credit file.
Does moving home affect my credit score?
Not directly. Your address is used for identity verification, not as a scoring factor. However, address mismatches across your accounts can sometimes slow down verification when you apply for credit. It is good practice to update your address with all lenders and both credit bureaus when you move.
What is ClearScore and how does it work in Canada?
ClearScore is a free service that gives you access to your credit score and report, sourced from TransUnion Canada. You can use it to track changes to your score, review your credit history, explore financial product options, and monitor your identity through ClearScore Protect. ClearScore does not provide personalised financial advice.
Disclaimer
This article provides general information only and does not constitute financial advice. Individual financial circumstances vary, and you may wish to seek independent advice before making financial decisions. Information is accurate at the time of writing and may change.
Tassie Milne
General Manager - ClearScore Canada
21 August 2026
12 min read
Contents
Key takeawaysWhy has my credit score dropped?Reason 1: Late or missed paymentsReason 2: High credit utilisationReason 3: A change of address on your credit reportReason 4: New credit applications and hard inquiriesReason 5: Short credit history or new accountsReason 6: Collections, bankruptcies, and other negative marksReason 7: Limited credit mix or too few accountsUsing ClearScore to monitor and improve your scoreFrequently asked questionsDisclaimer7 reasons why your credit score has gone down
Tassie Milne
General Manager - ClearScore Canada
21 August 2026
12 min read
Contents
Key takeawaysWhy has my credit score dropped?Reason 1: Late or missed paymentsReason 2: High credit utilisationReason 3: A change of address on your credit reportReason 4: New credit applications and hard inquiriesReason 5: Short credit history or new accountsReason 6: Collections, bankruptcies, and other negative marksReason 7: Limited credit mix or too few accountsUsing ClearScore to monitor and improve your scoreFrequently asked questionsDisclaimerCredit scores can drop for a number of reasons. Here's what may be behind yours, and how ClearScore can help you track your progress.
Key takeaways
Payment history has the biggest impact on your score. Even one late payment can cause a noticeable drop.
Using a large portion of your available credit can signal risk to lenders and lower your score.
Applying for new credit too often, or having a short credit history, can also work against you.
Negative marks like collections or bankruptcies stay on your report for several years, but their impact fades over time.
A healthy mix of credit types can support a stronger score.
ClearScore gives you free access to your credit score and report, so you can track changes and spot issues early.
Why has my credit score dropped?
Credit scores change regularly based on the information in your credit report. A drop does not always mean something has gone wrong. It often reflects a recent change in your financial activity, like a new account, a missed payment, or an increase in your outstanding balances.
Understanding what drives these changes can help you make informed decisions about your finances. Below are the seven most common reasons why your score may have gone down, along with practical guidance on what you can do.
Reason 1: Late or missed payments
Payment history is the single biggest factor in how your credit score is calculated. It accounts for roughly 35% of your overall score. When a payment is reported late, usually after 30 days or more, it can have a significant effect on your score.
The longer a payment goes unpaid, the greater the impact. A payment that is 90 days overdue will typically affect your score more than one that is 30 days late.
How long do late payments stay on your report?
In Canada, late payments and collections can remain on your Equifax or TransUnion credit report for up to six or seven years. However, their influence on your score tends to lessen over time, especially if you build a consistent record of on-time payments going forward.
You cannot remove accurate late payment information from your report before this period ends. What you can do is focus on the payments you make from today onwards.
What you can do
Set up automatic payments or calendar reminders so bills are paid on time.
If you have missed a payment, bring the account up to date as quickly as possible.
Check your credit report regularly to make sure all payment information is accurate.
You can check your credit report for free with ClearScore. Monitoring your report regularly can help you spot any errors and track your payment history over time.
Reason 2: High credit utilisation
Credit utilisation refers to how much of your available credit limit you are currently using. It is the second biggest factor in your credit score, accounting for around 30% of the total.
If your balances are high relative to your credit limits, lenders may see this as a sign that you are over-reliant on credit. This can lower your score even if you are making your payments on time.
What is a healthy utilisation level?
Utilisation level | Approximate range | What it may signal to lenders |
|---|---|---|
| Utilisation level Good | Approximate range Below 30% | What it may signal to lenders Manageable use of available credit |
| Utilisation level Fair | Approximate range 30% to 60% | What it may signal to lenders Some reliance on credit; may raise questions |
| Utilisation level Poor | Approximate range Above 60% | What it may signal to lenders High dependency on credit; considered higher risk |
These ranges are a general guide. Individual lenders may assess utilisation differently.
Common causes of high utilisation
An unexpected expense that pushed balances up
Reduced income making it harder to pay down balances
Closing a credit card, which reduces your total available credit
What you can do
Try to pay down balances where you can, prioritising accounts with higher utilisation.
Avoid closing older credit cards unless necessary, as this reduces your total available credit.
If your limit has changed, check whether this was reported accurately on your credit report.
ClearScore can help you track your credit usage over time. See your credit report and score for free to understand where you currently stand.
Reason 3: A change of address on your credit report
Moving home does not directly lower your credit score. However, if your new address is not updated correctly across your credit accounts and your credit report, it can create inconsistencies that affect how lenders verify your identity.
Address mismatches can sometimes trigger fraud flags or result in delayed verification when you apply for credit. This can make the application process more complicated, even if your score itself is unaffected.
How to update your address on your credit report in Canada
Contact Equifax Canada and TransUnion Canada directly to update your address on file.
Update your address with all existing lenders, banks, and creditors so your records are consistent.
Check your credit report after moving to confirm the update has been applied correctly.
Does a change of address affect your credit score? Myths vs. facts
Myth | Fact |
|---|---|
| Myth Moving home lowers your credit score. | Fact Your address is not a scored factor. It is used for identity verification only. |
| Myth Address mismatches can cause your application to be rejected. | Fact Inconsistencies can slow down verification, but they do not directly affect your score. |
| Myth You only need to update your address with one agency. | Fact It is best to update Equifax Canada and TransUnion Canada separately, as they hold independent records. |
Protecting your identity when you move
Moving home can create a window of vulnerability where post is redirected and personal details are in transition. Using an identity monitoring service during this period can help you stay aware of any unusual activity.
ClearScore Protect monitors the dark web and alerts you if your personal details appear somewhere they should not. Find out more about ClearScore Protect.
Reason 4: New credit applications and hard inquiries
Each time you apply for credit, the lender typically performs a hard inquiry on your credit report. This is a formal check that is recorded and can temporarily lower your score. Hard inquiries account for around 10% of your credit score.
A single hard inquiry will usually only have a small effect. However, multiple applications in a short period can signal to lenders that you may be experiencing financial difficulty, which can lower your score more noticeably.
Hard vs. soft inquiries
Inquiry type | What it involves | Does it affect your score? |
|---|---|---|
| Inquiry type Hard inquiry | What it involves Triggered when you apply for credit (e.g., a loan, credit card, or mortgage) | Does it affect your score? Yes, temporarily |
| Inquiry type Soft inquiry | What it involves Triggered when you check your own score or when a lender does a background check | Does it affect your score? No |
How many applications are too many?
There is no fixed limit, but applying for several products within a short window can raise concerns for lenders. As a general guide, spacing out applications by at least a few months can help limit the cumulative impact on your score.
What you can do
Use eligibility checkers before applying. These use soft inquiries and do not affect your score.
Only apply for credit when you genuinely need it.
Allow some time between applications to let any impact on your score settle.
With ClearScore, you can explore loan and credit card offers tailored to your credit profile, using soft eligibility checks that do not affect your score.
Reason 5: Short credit history or new accounts
The length of your credit history accounts for around 15% of your credit score. Lenders generally prefer to see a longer track record of responsible borrowing, as it gives them more information to assess your reliability.
Opening a new account can lower your score in two ways: it reduces the average age of your accounts, and it typically triggers a hard inquiry at the point of application.
Building credit history from scratch in Canada
If you are new to Canada, or have recently started using credit for the first time, your credit file may be thin. This can make it harder to access certain products, even if you manage your finances well.
A secured credit card can be a useful starting point, as it allows you to build a payment history with a lower level of risk.
Being added as an authorised user on someone else's account may help establish a credit history, though lenders assess this differently.
A credit builder loan, offered by some Canadian credit unions, is designed specifically to help people build a credit history over time.
Why closing old accounts can lower your score
When you close a credit account, particularly an older one, it reduces both your total available credit and the average age of your accounts. Both of these factors can negatively affect your score. It is generally worth keeping older accounts open if you are not being charged fees for doing so.
What you can do
Check your credit report to see how your credit history is building over time. You can track the age of your accounts and monitor your progress as your history grows.
Reason 6: Collections, bankruptcies, and other negative marks
Serious negative marks, such as accounts in collections, court judgments, or bankruptcies, can have a significant and lasting effect on your credit score. These are recorded on your credit report and can affect your ability to access credit for several years.
Types of negative marks in Canada
Collections: An unpaid debt that has been passed to a collection agency.
Court judgments: A legal ruling against you related to an unpaid debt.
Consumer proposals: A formal agreement to repay a portion of your debts, arranged through a Licensed Insolvency Trustee.
Bankruptcy: A legal process that discharges most debts, but has a significant impact on your credit profile.
How long do negative marks stay on your report?
Type of mark | Equifax Canada | TransUnion Canada |
|---|---|---|
| Type of mark Late payments | Equifax Canada Up to 6 years | TransUnion Canada Up to 6 years |
| Type of mark Collections | Equifax Canada Up to 6 years from last activity | TransUnion Canada Up to 6 years from last activity |
| Type of mark Consumer proposal | Equifax Canada Up to 3 years after completion | TransUnion Canada Up to 3 years after completion |
| Type of mark First bankruptcy | Equifax Canada Up to 6 years after discharge | TransUnion Canada Up to 6 years after discharge |
| Type of mark Second bankruptcy | Equifax Canada Up to 14 years after discharge | TransUnion Canada Up to 14 years after discharge |
Retention periods may vary in some provinces. Contact Equifax Canada or TransUnion Canada directly for the most current information applicable to your situation.
Disputing errors on your report
Negative marks that are accurate cannot be removed before their retention period ends. However, if you believe there is an error on your report, you have the right to dispute it with the relevant credit bureau.
Reason 7: Limited credit mix or too few accounts
Credit mix refers to the variety of credit types you hold, such as a combination of revolving credit (like credit cards) and installment credit (like a car loan or mortgage). It accounts for around 10% of your credit score.
Having only one type of credit, or very few accounts overall, can limit the information available to lenders when assessing your application. It does not mean your score will be low, but a broader mix can support a stronger profile over time.
Revolving vs. installment credit
Credit type | Examples | How it works |
|---|---|---|
| Credit type Revolving credit | Examples Credit cards, lines of credit | How it works You borrow up to a limit and repay flexibly. Your balance changes each month. |
| Credit type Installment credit | Examples Car loans, mortgages, personal loans | How it works You borrow a fixed amount and repay it in set instalments over an agreed term. |
What you can do
You do not need to open new accounts purely to improve your credit mix. Adding credit you do not need can create unnecessary risk. However, if you are considering a product you genuinely need, choosing one that also supports your credit mix can be a positive side effect.
Using ClearScore to monitor and improve your score
Keeping an eye on your credit score and report is one of the most practical things you can do. Regular monitoring helps you spot changes quickly, identify potential errors, and track the impact of your financial decisions over time.
Free credit score and report access
ClearScore gives you free access to your credit score and report for life, sourced from TransUnion Canada. You can check your score as often as you like, with no impact on your credit file.
Protect your identity
ClearScore Protect scans the dark web and monitors your credit report for signs of suspicious activity, alerting you if your personal details may be at risk.
Explore personalised offers
ClearScore shows you credit cards, loans, and car finance options that may be suitable based on your credit profile, using soft eligibility checks. This means you can explore your options without affecting your score. When ClearScore mentions pre-approval, please note: pre-approval doesn't always guarantee acceptance and is subject to lenders' checks of your credit status.
Frequently asked questions
Why did my credit score drop when I did not miss any payments?
There are several reasons your score can drop even with a clean payment record. These include an increase in your credit balances, a new hard inquiry, the closure of an old account, or simply a change in how the credit bureau has calculated your score based on updated information.
How long does it take for a credit score to recover?
There is no fixed timeframe, as recovery depends on the reason for the drop and the steps you take. Minor drops from a single hard inquiry may resolve within a few months. More significant marks, such as missed payments or collections, can take longer to recover from, though consistent positive behaviour over time can help rebuild your score.
Can I dispute information on my credit report in Canada?
Yes. If you believe there is an error on your Equifax or TransUnion report, you can submit a dispute directly with the relevant bureau. Both Equifax Canada and TransUnion Canada have formal dispute processes in place. You are entitled to a free copy of your credit report directly from each bureau at any time.
Does checking my own credit score lower it?
Not with ClearScore. Checking your own credit score is a soft inquiry and has no impact on your score. You can check your score as often as you like using ClearScore without any effect on your credit file.
Does moving home affect my credit score?
Not directly. Your address is used for identity verification, not as a scoring factor. However, address mismatches across your accounts can sometimes slow down verification when you apply for credit. It is good practice to update your address with all lenders and both credit bureaus when you move.
What is ClearScore and how does it work in Canada?
ClearScore is a free service that gives you access to your credit score and report, sourced from TransUnion Canada. You can use it to track changes to your score, review your credit history, explore financial product options, and monitor your identity through ClearScore Protect. ClearScore does not provide personalised financial advice.
Disclaimer
This article provides general information only and does not constitute financial advice. Individual financial circumstances vary, and you may wish to seek independent advice before making financial decisions. Information is accurate at the time of writing and may change.
Tassie Milne
General Manager - ClearScore Canada
21 August 2026
12 min read
Contents
Key takeawaysWhy has my credit score dropped?Reason 1: Late or missed paymentsReason 2: High credit utilisationReason 3: A change of address on your credit reportReason 4: New credit applications and hard inquiriesReason 5: Short credit history or new accountsReason 6: Collections, bankruptcies, and other negative marksReason 7: Limited credit mix or too few accountsUsing ClearScore to monitor and improve your scoreFrequently asked questionsDisclaimer