FiCO 8 drop 42 points today. Reason given Finance Companies

[AlmostNJ]

I am so bummed out today. After  5+ years of no late payments, and just waiting until late mortgages drop off in May 2022 today my score dropped from 682 to 642. New reason given was.that i have finance company accounts. They are showing 6.  

It says the following:

The presence of consumer finance loan on a credit report generally shows higher risk. Even if its closed. 

The only "finance companies" i have is Lending Club, Prosper and SoFi. All of which have 100% on time payments (80 out of 80 payments, 3 loans paid after a few months)

Wow. I have almost 1500 on time payments out of 1500. All i have is that one mortgage account which i have been on time now since May 2015.

I give up. 

[Anonymous]

Did you recently open a new loan/account that would be considered a consumer finance account?  If not, then the presence of a CFA is not the root cause of your score drop and you should dig a little deeper to find the cause. 

[Shooting-For-800]

If it just dropped, it is not because of old accounts...

[AlmostNJ]

Thanks. My score has been constantly in the 680s for over a year with a swing of no more and 3 points either way. The only thing I did was apply for and got a loan from SOFI. Oddly, my wife is not on that loan and her score dropped 30 points as well. 

[OmarGB9]

I would dig deeper and pull a free report from annualcreditreport.com. There has to be something else.

[Anonymous]

@AlmostNJ I am really sorry to hear about this score drop. I know it can be super deflating to see a drop this drastic. Was the score drop consistent among all three bureaus?

I also find it unusual and would have guessed that it may have been due to scorecard reassignment. Any chance you are carrying a larger balance than usual on one of your cards?

[AlmostNJ]

Hi.

As far as I know there has been no increase in balance on any credit card. None are over 90%. I have no derogatories.   I have to wait and see if my other scores from the other CRAs drop.

Right now none of the Vantage 3.0 scores have dropped. They are all consistent 667.

Thanks. 

[Anonymous]

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@AlmostNJ wrote:

The only thing I did was apply for and got a loan from SOFI. 

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I'm not familiar with this lender above.  Anyone?  Could this be a CFA?

[SouthJamaica]

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@AlmostNJ wrote:

I am so bummed out today. After  5+ years of no late payments, and just waiting until late mortgages drop off in May 2022 today my score dropped from 682 to 642. New reason given was.that i have finance company accounts. They are showing 6.  

It says the following:

The presence of consumer finance loan on a credit report generally shows higher risk. Even if its closed. 

The only "finance companies" i have is Lending Club, Prosper and SoFi. All of which have 100% on time payments (80 out of 80 payments, 3 loans paid after a few months)

Wow. I have almost 1500 on time payments out of 1500. All i have is that one mortgage account which i have been on time now since May 2015.

I give up. 

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The "reason" code is not necessarily related to the score drop. It is not the "reason" for the drop.

[AlmostNJ]

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@SouthJamaica wrote:

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@AlmostNJ wrote:

I am so bummed out today. After  5+ years of no late payments, and just waiting until late mortgages drop off in May 2022 today my score dropped from 682 to 642. New reason given was.that i have finance company accounts. They are showing 6.  

It says the following:

The presence of consumer finance loan on a credit report generally shows higher risk. Even if its closed. 

The only "finance companies" i have is Lending Club, Prosper and SoFi. All of which have 100% on time payments (80 out of 80 payments, 3 loans paid after a few months)

Wow. I have almost 1500 on time payments out of 1500. All i have is that one mortgage account which i have been on time now since May 2015.

I give up. 

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The "reason" code is not necessarily related to the score drop. It is not the "reason" for the drop.

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Ok let me dig a little deeper.