Why Did my Credit Score Drop? Reasons for Sudden Bad Credit

Why Did my Credit Score Drop? Reasons for Sudden Bad Credit

Posted by on Nov 30, 2022 - Archived under Uncategorized

We talk about bad credit car loans a lot here on our blog. The typical scenario is someone who has had trouble paying debts or got in over their head. But there is another type of person we deal with that has what we refer to as ‘situational bad credit’, which involves sudden bad credit, which is most of the time out of control.


So, we’re going to help answer the question “why did my credit score drop?”. Our auto loan team explains.


Situational Bad Credit


Situational bad credit is different to ‘standard’ bad credit in that it’s a blip in an otherwise exemplary credit history. It happens a lot after serious illness, after divorce, after being made redundant or another life-altering situation.


You may have a spotless payment history and a high credit score. Then, the situation hit, everything went crazy and you were unable to manage everything at once.



What Can You Do If Your Credit Score Drops?


You can deal with it. Life happens. People get into situations through no fault of their own. It happens. What you will be judged on is what you do next.


If you take control, contact lenders and work something out to repay what you owe, you will be judged fairly and positively. Paying on time will help rebuild your payment history and your credit score, which will be to your benefit.


how credit score is calculated


If you bury your head in the sand and try to ignore the situation, you won’t be viewed quite as positively. The debt will still be there and will still accrue interest, which is to your detriment.


One approach will definitely not prevent you from getting a bad credit car loan while the other may make life harder.


Can You Get a Car Loan With Situational Bad Credit?


Yes, you can get a car loan with situational bad credit!


The process is exactly the same as applying for any bad credit car loan. For the most part, it is often easier as you had a positive record before the situation happened.


As long as you can demonstrate to the lender that the situation has passed, that you have everything under control and that you can afford the loan, you should have no trouble qualifying for one.


Bad credit, situational or otherwise, doesn’t have the stigma it once did. While you may not like the idea of having it, nobody is going to judge you for it.


We are all here to help you get the car loan you need and can afford so you can buy the car you want. That’s all we’re interested in!


Hopefully this article answered your question of “why did my credit score drop?”. If you have any more questions, please don’t hesitate to contact us here.

Dixie Auto Loans