Has Anyone Else Noticed A Big Discover Fico Score Decline Recently?

Jack11
  |     |   233 posts since 2019

My FICO score at Discover went from 820 to 783 recently

And NOTHING has happened on my end to account for it

No inquiries- No large balances and no late payments anywhere

My score usually remains the same or up or down a point but one month I had a larger than normal credit card balance and it went down by 8 points for a month

Nothing to account for a 37 point decline

I have multiple other free credit score sources and none of them have decreased

Key factors affecting your score:

What's helping

No missed payments

Long credit history

What's hurting

Credit mix lacks different types of credit

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I remember reading somewhere that the people who have not been paying their house note because of the pandemic had increases- but this does not apply to me as I do not have a mortgage

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Part of the turbulence in the traditional scoring models comes as a result of the pandemic. The Fed found that, in one example, the scores for homeowners who entered forbearance programs tied to their mortgage payments saw a jump of 14 points in their FICOs. Those who did not enter the forbearance programs saw their scores grow by 7 points (let’s call it scoring inflation).

“This is because, although they were not making payments, their credit reports are treated as if they’re making continued payments for credit-scoring purposes and account histories,” the Fed said in a blog post.

The Fed post continued, “So, at the end, this brings two messages: on the one hand, it is good for the borrowers in forbearance not to suffer credit score-wise from missed payments. On the other hand, the concept of the credit score, a device to distinguish good borrowers from bad borrowers, may lose some of its power in signaling creditworthiness to lenders, at least for some time.”



Answers
Rickny
  |     |   91 posts since 2017
4 Banks rate me at 815 credit score. NASA gives me a 783. I wouldn't worry. Did you get your free credit report for the year just to make sure there are no errors?
Jack11
  |     |   233 posts since 2019
My NASA score is the highest of anywhere- 839

I have not asked for my credit report because I get alerts so if there was anything going on I would know it

All I have is I think 10 credit cards
Rickny
  |     |   91 posts since 2017
My scores went down as I got a few cash bonuses by getting new cards. Wife did the same. Also, the new reward cards pay even better bonuses than my previous cards.

My 0.9 car loan will be paid off next month so my score may drop after that.
Jack11
  |     |   233 posts since 2019
Yes I am aware of all that and I did a couple of new cards a few years ago for the bonuses but the hit to my score was small and the inquiries are gone now

There is no reason for this discover score to do this

Im thinking it might be some kind of error on their part that will be corrected next month when my score updates

Ive been watching my score for a long time and this is really the ONLY time I am unable to explain it
david3
  |     |   9 posts since 2012
Did you have any type of loan that was recently paid off, such as an auto loan.
If you did, and that type of credit is now a closed account, that can cause your score to drop.
Jack11
  |     |   233 posts since 2019
There is nothing that changed on my credit report- I owe $178 on one card but that might be zero to one point
No loans- no inquires- no closed accounts
Rickny
  |     |   91 posts since 2017
Scores can come from different agencies such as Equifax and Trans Union. Credit scores from banks may not be the same. They also have different formulas.

I have an Experion logon and they have my score at 839. NASA is now 782. The Experian Score is going to be used for an Inquiry (or other credit agency like Trans Union), not a Disover or NASA or other bank score.

With your free credit report you will get a score that will be used for an Inquiry.
Choice
  |     |   340 posts since 2020
Cash and carry! No “interest” (pun intended) in credit scores
Jack11
  |     |   233 posts since 2019
The cashback and a little interest makes it worthwhile to pay with credit cards versus billpay or cash at least for those of us who are able to control their spending

I do not pay interest or carry a balance beyond the due date
enduser
  |     |   278 posts since 2015
Mine dropped from 836 to 784. I acquired a different Amex CC and closed out the old one. I also added a second CC from Chase. I still use my CC's the same way, but I rotate them based on the quarterly bonus offers. I have never had a late payment nor ever carried a balance. CC issuers have never made a cent of me in interest or fees.
I think the third bullet below is what lowered my score.

Regardless of the FICO® Score version, the keys to obtaining favorable FICO Scores remain the same:
  • Make payments on time
  • Keep credit card balances low
  • Open new credit accounts only when needed
https://www.myfico.com/credit-education/credit-scores/fico-score-versions
Jack11
  |     |   233 posts since 2019
No inquiries or new credit or anything for over 2 years for me

One thing I did that I forgot about is changed my due date with Chase- but its hard to think that would affect it at all let alone that much

I tweeted discover via private message to try and ask if anyone else has had this issue and it was a waste of time- a non answer and a follow up just to tick me off I guess- I muted and blocked them on twitter
GreenDream
  |     |   103 posts since 2019
enduser, Closing an older account can also affect your score. 15% of the credit score is "length of credit history".

https://www.myfico.com/credit-education/whats-in-your-credit-score

"Your FICO Scores take into account:
- How long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts
- How long specific credit accounts have been established
- How long it has been since you used certain accounts"

so not only was the third of your bullets a factor, but likely you shortened the average age of your credit accounts by both closing an older account and by opening a new account(s)..

For example: if you had 3 cards ages 30, 20, and 10 years, your average age of credit was 20 years, if you closed the 20 and added a couple zeros (new cards), you now have 30, 10, 0 , 0 for an average age of credit of 10 years.
Rickny
  |     |   91 posts since 2017
Actually from Discovers site: Your Score is calculated using positive and negative information on your TransUnion® credit report.

Maybe you should get a report from Trans Union
Jack11
  |     |   233 posts since 2019
I get email alerts from a half dozen places whenever anything happens like an inquiry and some of them even when a payment posts
I would know if anything was happening to account for a lower score

And the discover site does not show anything negative beyond my biggest negative everywhere being I do not have a home or car loan
Rickny
  |     |   91 posts since 2017
I would suggest you look at your TransUnion report. Could be a mistake or an error. Discover just posts information they receive from the agency, they don't make a score for you.

Other than that the score they post is not used by anyone to get credit information.

If you say you have not received any inquiries then there is no problem to worry about. The score is useless and you have not made any changes to your credit. I would still get FREE annual report to check your actual score that will be used if you apply for credit from one of the big 3 credit agencies One last thing, my score does fluctuate by a couple of points when I make large purchases and my credit usage goes up (same would happen if you close accounts or payoff loans). I never got alerts when my credit usage goes up.
Choice
  |     |   340 posts since 2020
Credit reports are free weekly into 2022
Rickny
  |     |   91 posts since 2017
Thanks for the info Choice
GreenDream
  |     |   103 posts since 2019
It can also depend on when they calculated the score. If you made a big purchase with one of your cards, using up most of that card's credit line, and paid it off a week later, the score that would be calculated during that week could be considerably lower than a score calculated either before the purchase or after it was paid off due to the high credit utilization on that one card.
me1004
  |     |   1,042 posts since 2010
My FICO score at Dsicover has remined consistent. In fact, the May 11 score was exaclty the same as the April 11 score.

I note, Discover indicates the score is based on TransUnion data. So perhaps TransUnion has some error about you, you might want to check your TransUnion data. Maybe there has been some identity theft. The different credit scoring places can get different data, they do not always all get the same.
enduser
  |     |   278 posts since 2015
I get my FICO score from Discover also. That is where I discovered the drop in my score. I checked my credit history on the 3 main reporting agencies and also from Innovis and I found nothing had changed.

I closed an active Amex cc account that I had since 2001 and opened another new one with them. In doing so, I lost that lengthy credit history doing that. I also added another new cc from Chase and still kept the old one active. Opening new accounts, or closing old active accounts takes a toll on the credit score since the score is partly based on the length of the credit history.
Rickny
  |     |   91 posts since 2017
I have access to credit scores at Chase, NASA FCU, Wells Fargo, Penfed, Bank of America off the top of head. Those scores range from 782 to 850. I have a free Experian account which is 839 and that is a score most likely to be used by a credit issuer.

I also in the last 8 months Gotten
a Chase Freedom card and a Citibank Extra cash back card with bounuses. My scores went down about 5 points.
Jack11
  |     |   233 posts since 2019
Its hard for me to think of all my scores
Credit Karma
Credit Sesame
Credit dot com
Discover
Chase
BAC
And many CUs too
(do not have a direct Experian although some of the above use them I'm sure)

I have always been able to account for most movements in the past- but nothing has ever come close to a 37 point decline

If I charge up $1500 or so and it shows up on my credit report then I think its been an 8 point temporary hit

Right now I think I have a $287 balance and that has like a 1 point temporary hit at most places

The temporary hits will go away after payment although there is sometimes a delay because different reports have different updating dates or whatever
Rickny
  |     |   91 posts since 2017
None of the scores from Banks or CUSTOMER are the same as my official Experian score. Did all the credit scores you mention go down the same as Discover? These scores are not accurate. For example:

Your Free Credit Score from Chase May Not Be Very Accurate. This is because the Chase credit score journey you are given is not a FICO credit score, but it is generated by its quasi-sort-of competitor VantageScore 3.0.
Jack11
  |     |   233 posts since 2019
No other score anywhere went down

Credit dot com uses Experian and my score there is 829 9 points higher than Discovers 820 before the recent large drop

My credit karma scores are 829 and 827 and they do NOT use Experian

Some of the others probably do too but I don't keep up with which use what firm

But they are all pretty similar
-----------------
Nice work maintaining your EXCELLENT CREDIT SCORE. It's as excellent as ever! Check your grades and recommended action items below to keep it steady!

829
Your credit score is EXCELLENT
VantageScore 3.0® powered by Experian® *
Rickny
  |     |   91 posts since 2017
Since you seem so concerned with your Discover score discrepancy and their customer service is not helpful maybe send a letter to the CE0 of Discover.

I will repeat this and hopefully you read and understand this, the only credit scores that count are from the agencies. All the CU, Banks, Credit Karma are worthless.

My credit score directly from Experian is 839 yet may VantageScore powdered by Experian is 819 (,both are excellent scores). The 839 is a score that a lender would use.

Hope you get some satisfaction from Discover. Never been impressed with the Discover card or the bank. I had a Discover card years ago and their customer service was horrible. Guess things haven't changed. Good Luck!
GreenDream
  |     |   103 posts since 2019
Well, yes and no.

I wouldn't obsess so much over a specific number on a day to day basis (839 or 819) and focus more on what category you fall in to (poor, fair, good, very good, or exceptional). If you are in a lower category, look to see what you can do to improve your score to get into a better category, if you are already in the best category, keep up the good work as clearly you're doing fine.

All the different scores give you a general feel for where your credit worthiness is in a snapshot in time (and each institutions takes that snapshot at a different time. IE that 819 isn't necessarily calculated on the same day the 839 was) which is worth something, IMO, and for the most part they generally agree on where that is (all mine, for example, fall into the exceptional category, regardless of what specific number each institution gives).

When you do see a big drop (like Jack did) it is good to try and figure out why (and keep an eye out to see if it's an actual problem that will show up elsewhere in the weeks ahead or if it's just a "glitch" with that one score reporting at that one institution). Knowing what factors are used to calculate the score can help:
https://www.myfico.com/credit-education/what-is-a-fico-score

getting your credit reports from the big three is also a good means of sussing out what factor might have been the culprit.

If after all that, you still can't figure it out and nothing looks wrong with your credit reports, then check back when what they post your score the next time they post it. If it was just that one company out of the many companies that you are getting scores from, It could just have been a glitch, and the number will bounce back with the next posting. If the low number persists at just the one institution, your only option is to keep at them to help you figure out why they're so different (for example, did they change the scoring method they use? FICO is up to version 10 now. FICO 8 came out in 2009, FICO 9 in 2014, and FICO 10 just this past year. Discover's FAQ says they use FICO 8, but if they recently switch to 9 or 10 their FAQ might not have been updated to reflect that yet)


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