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Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
0

Discover pre-qualified, need advice

I have been getting pre-approval offers from Discover for the past few months (9.9 APR, $100 cashback bonus rewards).

 

I used to have a Discover card few years ago ($1000 Credit Limit). But, due to unfortunate circumstances, it was maxed out, and I never paid it off. It has fallen off of my credit report a year ago.

 

My question is, does Discover blacklist people? and due to the past account problems, will it be wise to apply, even though the invitation says pre-approved?


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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Valued Contributor
chnceit
Posts: 1,524
Registered: ‎08-17-2008
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Re: Discover pre-qualified, need advice


tennisfan78 wrote:

I have been getting pre-approval offers from Discover for the past few months (9.9 APR, $100 cashback bonus rewards).

 

I used to have a Discover card few years ago ($1000 Credit Limit). But, due to unfortunate circumstances, it was maxed out, and I never paid it off. It has fallen off of my credit report a year ago.

 

My question is, does Discover blacklist people? and due to the past account problems, will it be wise to apply, even though the invitation says pre-approved?


Some say they do, some say they dont. Try the search. YMMV. 

 

So you didnt pay it off right? IMHO why apply for them when you know you still owe?


$100K in Credit
Last Credit Card App: 11/16/13
Established Contributor
tennisfan78
Posts: 629
Registered: ‎09-18-2011
0

Re: Discover pre-qualified, need advice

Thanks chnceit. Yeah, I am thinking the same, why take a chance.

 

 


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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ssdc1980
Posts: 62
Registered: ‎05-03-2012
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Re: Discover pre-qualified, need advice

I figure why not apply. I would assume that your previous account that was never paid off has been long since sold to a CA. If it's been long enough for it to fall off your CR than it is also way past SOL. So the worst that can happen is they deny your app. From what I can tell Discover is a good card to have.

 

 

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
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Re: Discover pre-qualified, need advice

[ Edited ]

They're sending me 3 a week now it's driving me nuts lol, i should frame one since they were the first pre-approvals since I got my credit fixed lol, but if you were pre-approved then probably they would let you in I would think, usually pre-approvals has to go through their internal systems, could be wrong but only takes 1 hp to find out. I don't understand why people think Hardpulls are the devil, only affects you very small amount for a year, and many internal systems don't count it after 6 months or so. As long as your not going on a app-o-rama should affect anyone too much. Unless you were in a borderline with a huge purchase coming up then that's a huge NO.  (say your at 722 and your planning on a mortgage soon)


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
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exdoll
Posts: 5
Registered: ‎09-19-2012
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Re: Discover pre-qualified, need advice

Call them, thats what I did . The approvel I got was just a letter saying to call. The rep said I was already approved , they just needed my icome and other info after that it took 5 seconds for him to tell me I got a $ 4000 line. discover has been openning up . When I got mine they where more conservative 

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
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Re: Discover pre-qualified, need advice


exdoll wrote:

Call them, thats what I did . The approvel I got was just a letter saying to call. The rep said I was already approved , they just needed my icome and other info after that it took 5 seconds for him to tell me I got a $ 4000 line. discover has been openning up . When I got mine they where more conservative 


What did you report for your income at the time if you don't mind? =)


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
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Valued Contributor
improvingmycredit
Posts: 1,384
Registered: ‎07-12-2011
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Re: Discover pre-qualified, need advice

[ Edited ]

distantarray wrote:

They're sending me 3 a week now it's driving me nuts lol, i should frame one since they were the first pre-approvals since I got my credit fixed lol, but if you were pre-approved then probably they would let you in I would think, usually pre-approvals has to go through their internal systems, could be wrong but only takes 1 hp to find out. I don't understand why people think Hardpulls are the devil, only affects you very small amount for a year, and many internal systems don't count it after 6 months or so. As long as your not going on a app-o-rama should affect anyone too much. Unless you were in a borderline with a huge purchase coming up then that's a huge NO.  (say your at 722 and your planning on a mortgage soon)


Hey OP!  In general, most companies that you are blacklisted from won't even pull you credit file when applying.  I don't know if Discover is one of these companies but I'm sure if you do a little research on here, that info is available. :smileyhappy:

With regards to inqs, I don't necessarily agree with my colleague here.  Though inqs are one of the lesser dings to one's FICO, statistically persons with the highest FICO scores have only applied for credit 1 time in the last 3 years.  The inq is noted on your file and weighs your FICO for 1 year but stays on your report for 2.  The big deal though is that it can be the difference between a higher credit limit- higher apr on approval and out right denial for some. ( like US Bank Cash+ to their regular rewards visa).  Unless one is establishing credit, it is a good general rule to only apply for cards that you need.  In the long run, it's a good policy.  That's straight from the FICO's horses mouth so to speak. Being that you are trying to re-establish your credit with certain lenders, really plan your apps strategically and get those cards that are going to benefit you in the long run.  If it were me though, I'd app the Discover and if denied, call an analyst for recon and see what they say.  This would be a good card to grow with you if you can get it. :smileyhappy: Being that your scores are now in the 700's really look at the best cards for you and not what you can get. 


Starting Score: 642
Current Score: EQ 798, EX 780, TU 787 (All FICO)
Goal Score: 800+

Cards: NFCU Flagship 50K, BCP 28.6K, Arrival+ 25K, Citi DP 22.8K, CSP 20.5K, QuickSilver 20K, TotalRewards 18K

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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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Re: Discover pre-qualified, need advice


ssdc1980 wrote:

I figure why not apply. I would assume that your previous account that was never paid off has been long since sold to a CA. If it's been long enough for it to fall off your CR than it is also way past SOL. So the worst that can happen is they deny your app. From what I can tell Discover is a good card to have.

 

 


Generally, that is true, but IIRC, there are a few states out there with long SOL periods.  You should check before applying to make sure you can't be sued for the charged off balance, plus interest, etc.

Assuming you are outside SOL, I tend to agree with those saying one hard pull is not that big of a deal.  I think people go through a progression around here when it comes to inquiries.  Their credit first starts to improve and they apply for everything, then they see their score tank and become convinced that inquiries are the devil and that gardening is the only way to go.  However, there are too many score obsessed gardeners that take it too far in my opinion.  

 

When you are rebuilding, and you have negatives on your report, sometimes you need every last positive thing you can find to squeeze out the most FICO points.  So yes, inquiries and lowering of AAoA can be bad.  But as your reports clean up, it's really not that big of a deal.  As with everything, it depends on the circumstances.  If you're preparing to buy a house or a car, you want to ease off of the applications. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
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Re: Discover pre-qualified, need advice


improvingmycredit wrote:

distantarray wrote:

They're sending me 3 a week now it's driving me nuts lol, i should frame one since they were the first pre-approvals since I got my credit fixed lol, but if you were pre-approved then probably they would let you in I would think, usually pre-approvals has to go through their internal systems, could be wrong but only takes 1 hp to find out. I don't understand why people think Hardpulls are the devil, only affects you very small amount for a year, and many internal systems don't count it after 6 months or so. As long as your not going on a app-o-rama should affect anyone too much. Unless you were in a borderline with a huge purchase coming up then that's a huge NO.  (say your at 722 and your planning on a mortgage soon)


Hey OP!  In general, most companies that you are blacklisted from won't even pull you credit file when applying.  I don't know if Discover is one of these companies but I'm sure if you do a little research on here, that info is available. :smileyhappy:

With regards to inqs, I don't necessarily agree with my colleague here.  Though inqs are one of the lesser dings to one's FICO, statistically persons with the highest FICO scores have only applied for credit 1 time in the last 3 years.  The inq is noted on your file and weighs your FICO for 1 year but stays on your report for 2.  The big deal though is that it can be the difference between a higher credit limit- higher apr on approval and out right denial for some. ( like US Bank Cash+ to their regular rewards visa).  Unless one is establishing credit, it is a good general rule to only apply for cards that you need.  In the long run, it's a good policy.  That's straight from the FICO's horses mouth so to speak. Being that you are trying to re-establish your credit with certain lenders, really plan your apps strategically and get those cards that are going to benefit you in the long run.  If it were me though, I'd app the Discover and if denied, call an analyst for recon and see what they say.  This would be a good card to grow with you if you can get it. :smileyhappy: Being that your scores are now in the 700's really look at the best cards for you and not what you can get. 


but considering he's only looking at one card it shouldn't be that big a factor, since he didn't note he would be in the market for a house or a car soon it really shouldn't matter at all. of course there are cases where people should watch out for any types of credit dings, but if you set your priorities and per case scenario this seems more than fine to take a chance at a ding in credit score. His credit score is on the border pretty much but as long as no huge purchases are in the pending future it should reflect nothing really bad =)


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758

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