Discover IT recon....declined.

[IWOL]

I applied for the Discover It card on March 9th. I got the 10 day message. I received a letter in the mail today saying that my application was still being processed, so I called the number on the letter to see if I could find out the status. A very friendly CSR answered and started to look over my application. She put me on hold for about 10 minutes and said that my app was declined because of a collection account from Midland. I was very surprised to hear that since I know that collection was deleted from my EQ back in early Feb.

I had previously applied for a Discover in January but my scores had improved a lot since then so I thought I had a good shot. Anyway I told the rep that the Midland account had been removed from my report in Feb, so she looked over report again and said that she was looking at my report from Jan app. She put me on hold again and came back and said that she was now looking at my newer report dated March 9th and she sees that the collection is no longer there. So she put me on hold again and came back and said they like what they see on my current revolving accounts( I have 8 total cards, no lates all current, 15% Util) but they can't approve me due to my one other baddie which is an unpaid charge off from first Premier from 2007. She said that if the charge off was paid they would be able to approve me and they would love to have my business.

I have been thinking about just paying the charge off but I have been trying to get FP to PFD before I paid it.

I didnt realize that having it paid or unpaid might affect my approval on an app because from everything I've read oh here a charge off is treated the same for scoring weather paid or not but I suppose under manual review it makes a big difference when applying .

Thought I would post my experience in case any one else is in a similar situation where paying a charge off can be the difference between getting approved or declined.

Also my EQ score according to Discover was 675....which must be a CC enhanced score cause My Fico EQ is 651.

My income is $95k, AAoA is 3.9 years with oldest account 8 years. Util was at 15%, 5 Inq on EQ.

I'm wondering if I should get the charge off paid and showing a 0 balance and then try and recon again. I don't want to get another hard pull, would they accept me sending them a copy of a update report once the balance has updated.

[VirtualCuriosity]

Hmmm, my situation doesn't look a whole lot different than yours and I was instant approved online.  My CO is from 2007 also and shows a balance.  Income isn't too far off either.  I am just speculating that the CO being so old would not have mattered as much as being the sole reason they didn't approve you.

[Shogun]

The unpaid CO is scored the same as a paid CO for FICO scoring.  However your score is not the problem here, it's your CR.  The difference is that your CR is being looked at by a UW.  In this case a paid CO definitely looks better because it's a manual review.

[09Lexie]

I was approved in Jan with an unpaid CA (drops of in May) for $350. I had disputed that account in 2007- it says it right on my CR. anyway, my score was 707 at the time. AAOA was almost 8 years, util was over 15%.

Sorry to hear your recon was unsuccessful.

[RickyRay]

I cant seem to get approved for anything at all. Not even a household bank card..........Even got declined for a secured card, any suggestions, I have 11 store cards all in good standing since last october 2012. No lates,no derogs......nothing. 30% utilation and only 4 inquiries across all 3 CAs. You have any ideas and suggestions on How I can get a visa/or mastercard? Even a sucured one? No one seems to want me and it happens right after I tell them that I have social security for my income, Is it becouse I dont work?

 My scores are TU 600, EQ 619, and EX 670, just not sure why i cant seem to get anything good.  Just any suggestions would be good. Thanks.

[kevinjjc]

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@RickyRay wrote:

I cant seem to get approved for anything at all. Not even a household bank card..........Even got declined for a secured card, any suggestions, I have 11 store cards all in good standing since last october 2012. No lates,no derogs......nothing. 30% utilation and only 4 inquiries across all 3 CAs. You have any ideas and suggestions on How I can get a visa/or mastercard? Even a sucured one? No one seems to want me and it happens right after I tell them that I have social security for my income, Is it becouse I dont work?

 My scores are TU 600, EQ 619, and EX 670, just not sure why i cant seem to get anything good.  Just any suggestions would be good. Thanks.

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Sounds like you have too many store cards. Quality > quantity.

[manwoot]

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@kevinjjc wrote:

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@RickyRay wrote:

I cant seem to get approved for anything at all. Not even a household bank card..........Even got declined for a secured card, any suggestions, I have 11 store cards all in good standing since last october 2012. No lates,no derogs......nothing. 30% utilation and only 4 inquiries across all 3 CAs. You have any ideas and suggestions on How I can get a visa/or mastercard? Even a sucured one? No one seems to want me and it happens right after I tell them that I have social security for my income, Is it becouse I dont work?

 My scores are TU 600, EQ 619, and EX 670, just not sure why i cant seem to get anything good.  Just any suggestions would be good. Thanks.

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Sounds like you have too many store cards. Quality > quantity.

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+1

You probably have too much available credit for the limited amount of income you have.

[FinStar]

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@manwoot wrote:

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@kevinjjc wrote:

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@RickyRay wrote:

I cant seem to get approved for anything at all. Not even a household bank card..........Even got declined for a secured card, any suggestions, I have 11 store cards all in good standing since last october 2012. No lates,no derogs......nothing. 30% utilation and only 4 inquiries across all 3 CAs. You have any ideas and suggestions on How I can get a visa/or mastercard? Even a sucured one? No one seems to want me and it happens right after I tell them that I have social security for my income, Is it becouse I dont work?

 My scores are TU 600, EQ 619, and EX 670, just not sure why i cant seem to get anything good.  Just any suggestions would be good. Thanks.

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Sounds like you have too many store cards. Quality > quantity.

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+1

You probably have too much available credit for the limited amount of income you have.

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+2

Lenders are not going to place themselves in a position to overextend if your current income situation does not support additional extensions for credit.

[RickyRay]

 I see now. Should I close some of the store cards? 10 of them are comenity bank: KingSize, OneStopPlus, BrylaneHome, Womenwithin, Roamans, Jessica London, Haband,Blar, Buckle, and Express, My other one is GrandPointe. I thought I was doing something good for my credit when I got these cards, by doing the shopping trick at the check out on their web sites. I now only owe small amounts on a few of them.  I had Roamans before (Opened for my wife back in 1991) same account its just been paid off.

 It was not reporting until january 2013, I had to have that one updated to show the time it was opened from 1991. Also that long time frame I thought that would help...guesse not. I would get a credit one bank, however i live in wisconsin (Its not allowed here). So what would be your suggestions?  I think my $2400 month income from Soc. Sec. was good enough to qualify for something other then the store cards. But maybe I should close about half of those cards. I see that their are several post on here about some no credit pulls secured Visa and Mastercards, Maybe its time I get one. These store cards just is not cuttin it! It used to be easy to get just about any credit card you wanted, Thats all changed now. But on the other hand I see alot of post on here where folks are getting High Limit bank cards with horrible credit clean ups I am so unlucky with them.

 The turn downs that I got all say lack of no revolving bank cards, and short credit history. It seems like the banks would like a person getting a large pension like mine, Its a definent payment for sure. But they only want my direct deposits. Even the car finance companys dont want nothing to do with me becouse of the soc. sec. Anyway any suggestions on getting a visa or mastercard or discover card?  I about to just give up on it.  Thanks

[Brax]

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@IWOL wrote:
I applied for the Discover It card on March 9th. I got the 10 day message. I received a letter in the mail today saying that my application was still being processed, so I called the number on the letter to see if I could find out the status. A very friendly CSR answered and started to look over my application. She put me on hold for about 10 minutes and said that my app was declined because of a collection account from Midland. I was very surprised to hear that since I know that collection was deleted from my EQ back in early Feb.

I had previously applied for a Discover in January but my scores had improved a lot since then so I thought I had a good shot. Anyway I told the rep that the Midland account had been removed from my report in Feb, so she looked over report again and said that she was looking at my report from Jan app. She put me on hold again and came back and said that she was now looking at my newer report dated March 9th and she sees that the collection is no longer there. So she put me on hold again and came back and said they like what they see on my current revolving accounts( I have 8 total cards, no lates all current, 15% Util) but they can't approve me due to my one other baddie which is an unpaid charge off from first Premier from 2007. She said that if the charge off was paid they would be able to approve me and they would love to have my business.

I have been thinking about just paying the charge off but I have been trying to get FP to PFD before I paid it.

I didnt realize that having it paid or unpaid might affect my approval on an app because from everything I've read oh here a charge off is treated the same for scoring weather paid or not but I suppose under manual review it makes a big difference when applying .

Thought I would post my experience in case any one else is in a similar situation where paying a charge off can be the difference between getting approved or declined.

Also my EQ score according to Discover was 675....which must be a CC enhanced score cause My Fico EQ is 651.

My income is $95k, AAoA is 3.9 years with oldest account 8 years. Util was at 15%, 5 Inq on EQ.

I'm wondering if I should get the charge off paid and showing a 0 balance and then try and recon again. I don't want to get another hard pull, would they accept me sending them a copy of a update report once the balance has updated.

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This is very interesting, I got instantly approved online back in March and my credit profile is virtually identical to yours. EQ FICO provided from Discover was 670, similar income, AAoA about 4 years, oldest acct almost 8 years, Util was under 20%, but I had no Inq on EQ before applied. Two unpaid medical COs for about 2.5K from 2007. So the only difference was Inqs and having medical CO vs bank CO.

I would guess the # of Inqs or very recent prior app denial had something to do with the instant approval not going through. It probably would be best to wait 6-12 months regardless to apply again. By then the CO should be gone, so makes little sense to waste $$$ when that is unlikely to be affecting instant approval.