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HUGE score drop after Discovery Payment?!?!

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

HUGE score drop after Discovery Payment?!?!

I recently paid off $800.00 of a $2400.00 balance on my Discover card and today I was notified on the MyFICO app that my score has dropped 42 points on equifax and 15 on Experian? Why would that happen? I’m very discouraged!! Any advice or insight would be greatly appreciated!
Message 1 of 10
9 REPLIES 9
Established Contributor

Re: HUGE score drop after Discovery Payment?!?!

The event that caused the alert (the payment) did NOT cause the score decrease. Something else that is not an alert triggering event has occurred since the last time your score was calculated
Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 2 of 10
Valued Member

Re: HUGE score drop after Discovery Payment?!?!

The only thing else that has changed is I canceled my Amex gold card because I rarely used it. It was canceled with a zero balance. I wouldn’t think it would hurt my utilization because it was a charge card and didn’t have a credit limit?
Message 3 of 10
Regular Contributor

Re: HUGE score drop after Discovery Payment?!?!

Perhaps canceling the Amex lowered the average age of your accounts? Sorry this happened. It sucks. Hope you bounce back quickly.

Current Fico:
As of 4/2/18:


Message 4 of 10
Super Contributor

Re: HUGE score drop after Discovery Payment?!?!


@DommieD wrote:

Perhaps canceling the Amex lowered the average age of your accounts?


Closing an account has no bearing at all on age of accounts factors.  A closed account still present on your CR has the same age of accounts impact as an open account.

 

The OPs score did not drop from making that Discover payment, nor did it drop from closing his Amex card.

Message 5 of 10
Super Contributor

Re: HUGE score drop after Discovery Payment?!?!

OP after the Discover card went to a zero balance and reported zero, which other credit cards do you have that report any non-zero balance?
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 6 of 10
Valued Contributor

Re: HUGE score drop after Discovery Payment?!?!


@NRB525 wrote:
OP after the Discover card went to a zero balance and reported zero, which other credit cards do you have that report any non-zero balance?

OP didn't pay it to zero.

They stated they paid $800.00 of a $2400.00 bal.

So it doesn't seem to be an all zero penalty. 




Message 7 of 10
Super Contributor

Re: HUGE score drop after Discovery Payment?!?!

In any event, not a lot of details to go on.
Any old lates at any time?
Other accounts reporting balances?
Overall utilization?
AAoA?
What are current scores?
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 8 of 10
Valued Member

Re: HUGE score drop after Discovery Payment?!?!

No accounts reported late. 12 accounts with balances
100% on time payments
30% utilization
AAoA = 1 yr six months
1 car loan always paid on time.
Current scores are
Equifax 626
Transunion 677
Experian 650
I pulled my equifax report last night and found nothing out of the ordinary?
Message 9 of 10
Super Contributor

Re: HUGE score drop after Discovery Payment?!?!

Where are you getting your scores from?

 

Based on the data you provided in your previous post, there's no reason you shouldn't have FICO scores in the mid 700's with perfect payment history and 30% utilization.  Are you looking at a "payment history" stat from a fluff front-end summary page from a source like Credit Karma?  If so, you may have and older negative item present on your CR, but their graphic will show 100% perfect payment history if it wasn't within the last couple of years.  Just making sure you have absolutely no negative items at all on your CR. 

 

You also have a couple of profile data pieces that are near threshold levels, meaning the crossing of them could have happened recently.  Two that stand out are your 30% utilization and AAoA of 1 year 6 months.

Message 10 of 10