Why do hard pulls on your credit make it go down?
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A hard pull means you are trying to get more credit from someone. Think of it this way, someone looking for a new source of credit might be doing so because they’re unable to manage their existing credit payments (and a new source of credit can buy them a little more time to potentially solve the problem). Enough people do this before defaulting that the bureaus include it as a factor because of the potential.
A credit score is just a fancy way of measuring default risk, nearly everything that lowers it means that that factor is associated with more people with that characteristic defaulting than without it.
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