Discover Credit Card Complaint

Discover Credit card department,

Michigan

This complaint involves - companies that each claim innocence. They each tell me to talk to the other company and none offer any method to resolve the issue The companies are Discover Financial services, - and - - - - -. Specifically ; Discover Financial Provides me My - score and an explanation for any change as follows ; Your - Credit Score is based on your - credit report using the - Score -. The " problem '' is that that after months of having a - score at or near -, my - score dropped to - as reported by Discover Financial Sevices. The Credit Card offers a free - score updated monthly. Discover, shows the reason for this decrease is : " 1. PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH The balances of your non-mortgage installment loans ( such as auto or student loans ) are high compared to your original loan amounts. As you pay down your loan your balance decreases, which reduces the proportion. '' The key


In reality, the only financial activity that I was involved in was a refinancing of my HOME Mortgage. In fact, the action was to refinance an existing balance at a reduced interest rate with no cash out. Bottom line is that there was no change in outstanding debt, the only change was a debt that is now 100 % of the " new '' mortgage balance as compared to, approximately 75 % of the " old '' mortgage original loan. REMEMBER ... the debt amount is exactly the same! Also remember that this is MORTGAGE debt ... Not the " non-mortgage debt '' as referenced in the Discover Card explanation for change ( decrease in score ). Upon discussion with Discover, they directed me to -, who can not /will not explain the change and they blame - as they are the company who determines the score.When I discuss the problem with - they in turn blame - who provides the data for the - score determination. So as a consumer, I am directed into a - way loop of blame, Discover blames - who blames - - ... who blames -. I have experienced a significant change in my - score that is unwarranted. The fact is, that by refinancing at a lower rate, I have lowered my monthly payment, which in fact ( common sense ) should improve my credit score. There is a significant problem in either - '' s classification of Debt type or in - formula for - score determination. This case shows that consumers who refinance could and some cases will experience a significant decrease in their FICO score, which in turn can have a significant negative impact on future borrowing costs