Large drop in FICO

[Anonymous]

So, this month I noticed a huge drop in my FICO scores. My Transunion FICO dropped from 770 to 728 and my Experian dropped from 760 to 727. The only difference this month was that their was fraud on my Discover that caused them to have to shut down my card and send another. Since then I have noticed that that account is no longer showing up on Credit Karma. Is due to the fraud? If so, is this why I've seen a drop in my scores(ie:  drop in AAoA)? I want to make sure this is the only reason, as I am hoping to see a rebound in these scores next month. I'm about 2 months out from starting the home buying process and I as anyone would, I want the best rate possible.

Thanks!

[Anonymous]

Having a creditor send you a new card doesn't result in your account being closed, so such an event shouldn't impact your FICO scores.

And, the only real way that could adversely impact your credit scores is by increasing your utilization.  If your Discover card had a high limit (a large portion of your overall limits) and you had balances on other cards that were significant, losing your Discover limit would lower your overall limits while your balances still remained the same, thus possibly increasing utilization across a threshold. 

[Anonymous]

I have similar scores... Same thing happend to me a couple months ago. It went way down, then way back up. Down again and I have no idea why. Nothing has changed. No high utilization. I'm perplexed.

[pizza1]

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@Anonymous wrote:

Having a creditor send you a new card doesn't result in your account being closed, so such an event shouldn't impact your FICO scores.

And, the only real way that could adversely impact your credit scores is by increasing your utilization.  If your Discover card had a high limit (a large portion of your overall limits) and you had balances on other cards that were significant, losing your Discover limit would lower your overall limits while your balances still remained the same, thus possibly increasing utilization across a threshold. 

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+1.....

Discover removed my tradeline completely that had fraud, and reinserted it with new number etc...same history though, so she could have temporarily lost that TL/util cushion which in turn would lower her scores for a bit, unitl they reinsert the TL again. 

[Anonymous]

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@pizza1 wrote:

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@Anonymous wrote:

Having a creditor send you a new card doesn't result in your account being closed, so such an event shouldn't impact your FICO scores.

And, the only real way that could adversely impact your credit scores is by increasing your utilization.  If your Discover card had a high limit (a large portion of your overall limits) and you had balances on other cards that were significant, losing your Discover limit would lower your overall limits while your balances still remained the same, thus possibly increasing utilization across a threshold. 

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+1.....

Discover removed my tradeline completely that had fraud, and reinserted it with new number etc...same history though, so she could have temporarily lost that TL/util cushion which in turn would lower her scores for a bit, unitl they reinsert the TL again. 

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That's what I was thinking happened, pizza1(except I thought the change in score was due to a change in AAoA but utilization makes more sense)and the reason why it is no longer reporting on CreditKarma. I hope my scores will rebound once the tradeline is re-introduced onto my credit report. Why is it that CCC take the tradeline completely off CR's when fraud has occured? I guess I'm assuming all companies do this. Do they? and why?

[Anonymous]

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@Anonymous wrote:

Having a creditor send you a new card doesn't result in your account being closed, so such an event shouldn't impact your FICO scores.

And, the only real way that could adversely impact your credit scores is by increasing your utilization.  If your Discover card had a high limit (a large portion of your overall limits) and you had balances on other cards that were significant, losing your Discover limit would lower your overall limits while your balances still remained the same, thus possibly increasing utilization across a threshold. 

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Yeah, I understand the account is still open but it is no longer being reported on my credit reports.

[Anonymous]

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@Anonymous wrote:

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Yeah, I understand the account is still open but it is no longer being reported on my credit reports.

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That's the issue then, 100%.  Once the account is back on your reports, your score will return to where it previously was, assuming your utilization returns to the previous amount.

[MrTom]

Doesn't FICO react to the status date?  The scoring system could of thought this was a new account..