New Delhi, Feb. 17 -- It can become very confusing to understand how your credit score is fluctuating all the while you are regularly paying your bills in time.

Here are some reasons which could lead to a drop in your credit score even if you are prompt in paying your bills.

Your credit score has often been hugely affected by the credit utilization ratio-the ratio of how much of the credit made available to you is being used. This ideally needs to stay below 30%. If you keep swiping your credit card up to its limit or maintain high outstanding balances, it tells the lender that you are under acute financial pressure-leading to a negative influence on your score.

Recent credit applicationsWhenever you apply for credit, it puts a hard in...