Why did my FICO score drop so unexpectedly?!?

[Anonymous]

I have ALWAYS stayed on top of my credit scores!  Today I received a notice from My Fico that my FICO score had dropped 19 points ( from 795 to 776!!!).

I called FICO and was told that I needed to contact Equifax, the bureau through which my FICO score information is obtained.

Equifax said they see no reason for the drop with FICO.  My score with Equifax remains where it has been, at 793!

Each bureau (Equifax and FICO) has told me that I need to contact the OTHER ONE to get answers!  

FICO noted a DECREASE in my debt accompanying the 19 POINT DROP!!!

HELP!!!

[Anonymous]

The best thing you can do for yourself is to take a sedative.  Something changed on your report which resulted in a score drop and it's very common for there to be ups and downs with any person's score.

We can't really make any reasonable guesses as to what made have caused it without having a copy of your report before the drop and then another copy afterward.

You mention that you had a decrease in your debt.  If the decrease resulted in all cards reporting $0, this would cause a 15-20 point drop.  That's about the best guess anyone could make given that we know almost nothing about what your reports look like.

Another thing you can do for yourself (after you are calmer) is invest a few weeks learning the fundamentals of credit reporting and scoring.  Your post reveals that there are a lot of major things you don't understand.  For example, you refer to FICO as a credit bureau.  Equifax, TransUnion, and Experian are credit bureaus, but FICO is not.  You also refer to a phone call you made to FICO.  Almost certainly I would bet that you called myFICO, which is not the same thing as FICO.  FICO makes the scoring algorithm, and myFICO makes the credit monitoring service (CMS) that you are probably a subscriber to)  It's a bit like you calling the customer service line for your Chase Freedom and believing you called VISA (which is a different company altogether).

[SouthJamaica]

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@Anonymous wrote:

I have ALWAYS stayed on top of my credit scores!  Today I received a notice from My Fico that my FICO score had dropped 19 points ( from 795 to 776!!!).

I called FICO and was told that I needed to contact Equifax, the bureau through which my FICO score information is obtained.

Equifax said they see no reason for the drop with FICO.  My score with Equifax remains where it has been, at 793!

Each bureau (Equifax and FICO) has told me that I need to contact the OTHER ONE to get answers!  

FICO noted a DECREASE in my debt accompanying the 19 POINT DROP!!!

HELP!!!

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In order to know why your EQ FICO 8 dropped we would need to know what was in the report the day before the drop, and what was in the report after the drop. 

[Anonymous]

Ouch! I feel for you. You were probably looking forward to 800. You worked hard and watched your score climb. It's been a slow process, but it's getting there. You're at 795 and you can almost taste it. You pay down some more debt and wait for it to report. And... What!? 776?!

We've been there. It sucks.

But here's the thing. Although there is an objective reason, it may not be knowable to you or to me. The formula is complicated and it's a secret, and it's unlikely you have enough timely data to figure it out anyway. So when something like this happens, you're right to look at your reports closely to makes sure there's nothing going on that you need to address. But if there's nothing there, you just chalk it up to noise.

Unless you're planning to apply for something soon, it's just not worth it to sweat a few-point swing here or there. Even 19 points. Keep doing what you're doing, and in the long run, the noise will even out and you'll be where you need to be.

At least that's the approach I've adopted, and I'm a lot calmer about it than I used to be!

[Anonymous]

Thank you, first off, for taking the time to respond to my SOS.

However, I don’t like being patronized when it comes to understanding sometimg so ridiculously esoteric and undefined as the credit world.

Regardless of your implications, the “rules” binding the vagaries of this area that so CONTROLS our day-to-day lives (usually behind the scene) are sketchy and illogical at best.

I DID, in fact, speak to FICO, not “MyFico”, and I don’t think a drop of 19 POINTS (which I have never seen before) is anything to sneeze at.

In today’s world, there are cyber-predators around every turn.

I’m off to get my electroshock therapy now, just as ignorant (not stupid!) as I was before.....the real answer is (like so many things in American culture today).....there is no answer.

I apologize.....I’m angry and frightened, and truly do appreciate the time.

B

[Anonymous]

THANK YOU!! 🙂

[Anonymous]

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@Anonymous wrote:

You mention that you had a decrease in your debt.  If the decrease resulted in all cards reporting $0, this would cause a 15-20 point drop.  That's about the best guess anyone could make given that we know almost nothing about what your reports look like.

As CreditGuy suggested, there are a couple of scenerios where paying down a debt could cause a decrease in your score. One is if you didn't have any credit cards report a balance. FICO doesn't like that. Another is if you actually paid off an installment loan (like a car loan) and you didn't have any other installment loans. That would mean you don't have as good of a credit mix.

It's completely counter-intuitive that paying down debt would result in an (at least short-term) decrease, but it can.

I don't know if either of those situations apply to you, but it they do, that would explain it, and there's something you can do. If your credit cards reported 0 balances, make sure one reports at least a small balances (but less than 8.9%), and you should get all of your points back the next month. If you paid off your only installment loan, and you really want the point, apply for a small loan. You'll actually lose points for the credit check and the new credit, but in the long run having the loan open will give you more points than it costs you.

[dynamicvb]

Wow people really are touchy around here today.

[Anonymous]

yep....people who have all of the answers usually don’t really have ANY answers.....I came on here with an open, innocent questionabd was almost IMMEDIATELY pounced upon by a know-it-all....I hate these forums....will go back to my policy of not being on them.....

[SouthJamaica]

I would love it if a moderator closed this thread, before someone says something they might regret.