Reward and punishment

Anonymous · ‎06-26-2017

Hello all. Most posts here are negative so just wanted to throw some good news for a change for me personally. Got a email from discover stating due to responsible account management. My security deposit of 1400.00 was being returned to me and my account was turning unsecured. With the same credit limit. I was overwhelmed that in just 7 months of opening the account I graduated. But there's a small twist to this. And of course FICO had to blow out the candles for me in a small way. I've done nothing different in 7 months. Paying everything as agreed. Leaving a balance on 1 of 4 cards each months and paying my installment loan on time every month. My scores have went from EQ 535/726 TU 505/646 Ex 519/649. Then discover graduates me and my TU drops 1 point???!?!?!?!?!. Come on already. This makes no sense. Really here???. What's going on. Nothing worse then feeling great on a achievement and then being slapped in the face for it. anyone have comment for this? Thank you

Anonymous · ‎06-27-2017

Don't sweat the small stuff. The CRA's often seem to do their scoring by throwing darts at the board, though that might be being generous. My own TU FICO is lagging at least 30 points behind my EQ and EX, which are in the high 670's this month. A 1-point drop is really not anything to worry about and I'd bet it'll jump up next month once the graduation (congratulations!) percolates through the system.

Anonymous · ‎06-27-2017

Two comments to the OP.

One, a single point drop is meaningless. Up to 5 points really means nothing and scores can fluctuate slightly here and there for no rhyme or reason. As stated above, "don't sweat the small stuff."

Second and most important, your score did not "drop" 1 point because of your account graduating. The one point drop had nothing to do with that, so you aren't in any way being punished for credit improvement in this situation.

HeavenOhio · ‎06-27-2017

Does FICO even care if an account is secured or not?

Anonymous · ‎06-27-2017

@HeavenOhio wrote:
Does FICO even care if an account is secured or not?

Not to my knowledge. I think almost all revolvers are scored the same... secured, unsecured, major bank card vs store card vs charge card, etc. I think the only exception really would be AU accounts.