WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

[Anonymous]

This makes the 4th thread ive seen in two days on DISCOVER taking AA -- shocking really, as I never have read Discover AA threads before.  They must be taking a page out of Comenity's book or Barclay.  

Anyway, my Best friend has had his Discover account for over a year, and yesterday went to login to pay his bill and it stated "ACCOUNT CLOSED" at the top -- he had a CL of $11,500 !!!!  Called in, and told that they "recently completed a review and closed his account for (GET THIS) too many recent inquiries, new accounts and spike in available credit".  He was naturally livid, and tried to recon with a Sr Analyst and a call to EO, to no avail -- apparently once DISCOVER shuts you down you're out for 6 months minimum.  Thank GOD I have never been able to get approved with Discover lol !!!

Naturally, people on these boards are NOT your everyday consumer....many of us engage in credit behavior that lenders deem risky, it is what it is -- my friend however doesnt even use MFico, yet loves to open new accts and app.  Guess it bit him, this is oging to kill UTIL overall I'm thnking, but I dont know entire lineup.

As a note, the Analyst told him that DISCOVER is very recently reviewing many accounts and taking action "as needed to limit risk and will be closing/CLDing as necessary during this sweep".  Ouch indeed!!!!

Best of luck all Discover-people!  Watch the new apps;/accts/lates !!  

[Anonymous]

Those are pyramiding reasons. Interesting.

[Loquat]

Nice heads up to those with Discover.  I've never been their good graces...so no worries here.

[Anonymous]

I was thinking the same Loquat. I will obviously stop trying with them forever now lol. I understand a lenders right to take AA, but when you see a spike like this in a matter of DAYS it's concerning and a bit absurd. Cld, closure -- all within rights. I just want nothing to do with a lender who does it often, or in large spates.

[Anonymous]

Sorry to hear about your friend.  Lets address his utilization... How high was his utilization?  How many new accounts?  Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.

[Anonymous]

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@Anonymous wrote:

Sorry to hear about your friend.  Lets address his utilization... How high was his utilization?  How many new accounts?  Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.

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+1. I would not want anyone on the board to be concerned unnecessarily. Discover has many more situations of being very good to people.

[Anonymous]

Yes it's me -- I agree it's just very strange to see 4 threads in two days about Any ONE bank taking AA let alone Discover, whom you never hear of doing this.

I don't know all his stats, but I do know:

Scores 700-720 across board.
Income $80k
overall Util roughly 30%
About 10 new accounts (!!!)
Many INQs

So in my viewpoint, nothing Overly Alarming but I can see where they'd get a bit spooked. We're not talking sudden lates showing up, collections or COs though. And 30% Util isn't an OH MY GOD utilization by any means. Heck I've carried 70% back in the day with no AA for a few months at a time.

I really believe the credit game is like roulette. All depends where the ball stops

[kdm31091]

Any lender can and does take AA. You hear of it more with some than others but ultimately risk factors are risk factors and when they become significant enough these things happen. I'm sorry to hear it though.

[someone379]

Is that 10 new accounts within the past couple monhts, or is that 10 new accounts over the past 2 years+?  

That could be a lot of activity... I guess I wonder because I have 11 accounts, most in the last 2 years, but only a couple less than 6 months old...

Any ballpark on total credit available?

[Anonymous]

I'm interested in hearing the details of his account too. As a new cardholder, I'd like to know if closure is possible even if my Discover history is perfect.