Besides seeing their score, Discover customers will also be given some insight into what affected it. The two key factors that influenced the score will be listed on the statement along with the number itself.
“We’re now taking it one step further by providing consumers with the specific reasons their score is what it is,” said Julie Loeger, senior vice president of brand and acquisition at Discover.
This information will also be available online in the member’s account. Knowing what went into bringing their score up or dragging it down each month will empower people to improve their credit rating by addressing any issues that are hurting their score.
Debuted last year
When Discover first introduced the free credit score program, it was limited to people who had their newest card–the Discover it card. Now Discover More, Miles, Motiva, Open Road, and Escape cardholders will all get the benefit.
Scores will be printed on monthly statements and are also available online. Data for FICO scores come from TransUnion data. Scores range from 300 to 850 and are based on payment history, debt-to-credit ratios, length of credit history, types of debt carried, and number of new credit accounts opened. Knowing one’s credit score is helpful for people who are planning to take out a mortgage, apply for a new credit card, or get any type of loan. Customers with higher credit scores are eligible for lower interest rates and better terms.
Although all consumers are entitled to one free credit report each year from each of the three major credit bureaus—TransUnion, Experian, and Equifax—it has traditionally cost something to find out the actual credit score. Discover is the first major credit card issuer to give cardholders free access to their credit scores each month via their monthly statement.