My credit score suddenly dropped this month — should I be worried?

Post: So I checked my CIBIL score today and it has dropped by almost 40 points compared to last month. I haven’t missed any payments and all my EMIs/credit card bills are paid on time.

The only thing I did recently was apply for a new credit card and increase the limit on another card. Could that really cause such a big dip?

Also, I noticed one of my old loan accounts still showing as “active” even though I closed it last year. Not sure if that’s affecting it.

Has anyone here faced a sudden score drop like this? How long does it usually take to go back up? Any tips to stabilise it would help.