How is it possible that my credit score dropped?

Question by jaden smith: How is it possible that my credit score dropped?
I cant understand how in the world my credit score actually fell lower than it was last month. No late payments in the past 4 years, no new credit inquiries or accounts since May (the same inquiries were on last months report), and I actually paid off a $ 4000 credit card. This makes no sense to me whatsoever….Can anyone explain why my score dropped?

Best answer:

Answer by Sbh
Is it only slightly or is there a huge difference? Slight fluctuations are nothing to worry about, it will probably revert back next month by which time the £4000 you paid off should have registered. If there is a big drop check with the Credit reference agencies such as Equifax or Experian (on line or with a form). It could indicate that someone has applied for or borrowed in your name. Another possibility is that someone at the same address as you has financial problems.
Once you have checked your credit records you can have them sorted if anything is incorrect, if it someone else at the same address you can ‘disassociate’ yourself financially from them.
Check the websites for Experian & Equifax for fuller details.

Know better? Leave your own answer in the comments!