Should I update grades (bad grade)

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Your GPA barely changed. That's not worthy of an update...
 
If you went from a 3.9 to a 3.5 then I'd probably write one. But it dropped .05 points. You're fine.
 
Unless they specifically ask for your grades to be updated, I wouldn't bother. Also, I seriously doubt that small of a change would have any hinderance on their decisions regarding your application. If they are still considering your application it's certainly not because you "only" had a 3.9.
 
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