Credit score fluctuation as the term describes variation or changes in the credit score, before talking about the Credit score fluctuation let’s just get a quick overview on what credit score is basically credit score refers to the number that illustrates the risk of the lender while someone borrows the money from him. The risk of the borrower is indicated with the measure that is generated by Fair Isaac corporation. The higher the credit score of the borrower the lower is the risk for the lender as the credit score defines the credit risk at a particular moment of time. The credit score differs depending on the score that is being used.

Now talking about the credit score fluctuations then there are several reasons and we will be discussing them further. The credit score fluctuation mostly happens on monthly basis or how frequent your credit report is being updated. Mainly the alteration to your credit score occurs incrementally. Predominantly the credit score is overblown due to the element of the credit report like there are multiple late payments, number, age and the type of account, recent inquiries and the total debt, credit card utilization. The scores that are used by the lender depends on the occupation, income, type of the residence.

Here we will discuss the reasons for the credit score to change

Modifications in the revolving credit balances

Whenever there are changes in the revolving credit balance it leads to fluctuations in the credit score.

Whenever you use your credit card the credit score fluctuates like if your balances advances up then your credit utilization also goes high. This utilization of credit is intended by splitting the debt amount on credit card with your credit limit.

Late Payments

This is one of most deprecatory factor that leads to the credit score fluctuations your credit score can be affected even when there is a one  30-day late payment. If there is any late payment then it will be noticeable for the next seven years as it is reflected in the credit file. This one late payment can put a lot of obstructive impact on your credit score.

 Aging of Negative Items in Your Credit Report

If there are more number of late payments or the incidents like the foreclosure, bankruptcy your credit score goes low but with time they age and the effect they have on your credit score vanishes and in future the credit score becomes equal or goes up and you prompt to see the fluctuation.

Apply for New Credit

When you apply for a new credit card it also reflects the fluctuation in credit score as your credit score goes low for significant reasons.

Scorecard Hopping

Scorecard hopping generally takes place if the FICO positions the consumer in a new scorecard. FICO does not provide the entire information about it’s scorecard but evaluate different people on different scorecards. One of the scorecard that prevails is for the consumers who have the most number of faulty payments like late payments, bankruptcy this scorecard is used to determine the risk situation for the consumer.

You can always monitor your credit report by checking the credit report, using the services that gives you information on credit score and by always having a check on the FICO score.