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discover, fr

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red259
Super Contributor

Re: discover, fr


@Anonymous wrote:

Man, if I received a FR from Discover I would be very upset. I would have to walk across my office to my gun safe, take out my Discover it card (where it has been since it was opened), then proceed to my shredder with both the card and the letter. 

 

I just can't imagine doing anything other than the 2 minute online application to obtain or keep a Discover card. Thanks for sharing your experience OP, I didn't know Discover did FRs.


The second Discover read that you would be very upset with an FR and would walk over to your gun safe the chances of your being FR'd by Discover dropped drastically. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 31 of 69
Anonymous
Not applicable

Re: discover, fr


@red259 wrote:

@Anonymous wrote:

Man, if I received a FR from Discover I would be very upset. I would have to walk across my office to my gun safe, take out my Discover it card (where it has been since it was opened), then proceed to my shredder with both the card and the letter. 

 

I just can't imagine doing anything other than the 2 minute online application to obtain or keep a Discover card. Thanks for sharing your experience OP, I didn't know Discover did FRs.


The second Discover read that you would be very upset with an FR and would walk over to your gun safe the chances of your being FR'd by Discover dropped drastically. 


 

 

20150127_191121.jpg

Message 32 of 69
Anonymous
Not applicable

Re: discover, fr

Lol..
Message 33 of 69
red259
Super Contributor

Re: discover, fr


@yfan wrote:

@FinStar wrote:

AFAIK, AMEX doesn't really target such financial reviews based on just a card type criteria (charge or revolving or both); their risk algorithms would certainly identify specific conditions or other logic to conduct these.  Rare would seem based on who reports them on here or other forums but not the general population.  And, while Discover does not need a "charge card" product to conduct a periodic financial review, there are other lenders who conduct them too, such as Citi.  Each lender has their own criteria and they're simply requesting to verify the income information is in line, even if it appears out of the norm for a $1,500 tradeline.  We don't have the full picture folks.


Well, I don't know of anyone who does not have - and has never had - any Amex charge cards being FR'ed. Certainly not impossible, but by far the overwhelming number of cases we see here have at least one charge card into the mix. It also makes logical sense. Since charge cards have no pre-set spending limit, Amex may want better assurance that whatever is charged will be paid back OR help them decide what size transactions to approve/deny.

 

Speaking of which, I am quite certain it is rare, because the only cases I have heard of Amex doing FR's are on forums. Not a one in real life. Sure, it's possible that I live an abnormal life, but I think it's more likely that the population on credit boards is skewed.

 

Lastly, I am absolutely not saying Discover needs a charge card to justify an FR. As far as justification is concerned, that they are a lender that wants to verify income is plenty. What I'm saying is that Amex due to its (at least perceived) prestige can command a certain level of compliance that I don't believe Discover can. That isn't a statement about one lender being more justified than another, it is just a statement that Amex commands more market power from a more affluent clientelle.


I understand what you are saying about charge cards, but under this logic you would never get hit with an Amex FR if you do not have a charge card. That does not make sense. Charge cards may result in more FRs in situations where people spend more than their stated income. Why is that? Because their revolvers will have a hard limit that they can not exceed or will be heavily controlled. The charge card will allow people to spend much more than they could on their revolver and therefore increase the chance of a lender wondering how this person is spending all this money when their overly income is only X. We have seen threads from people with different lenders hitting AA/FRs, which has nothing to do with charge cards and FRs can be triggered by things other than excessive spending in proportion to income. Most people on here with Amex started with an amex charge card because the advice has always been its a bit easier to get your foot in the door with a charge card over a revolver. You can't then draw the correlation between having an amex charge card and then being at more of a risk for an FR vs someone with just revolvers because the sample population here is skewed to the vast majority of people having or having had an amex charge card at one point. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 34 of 69
racer-x
Valued Contributor

Re: discover, fr

Discover has been disowned by me, since the huge CLD because I carried a balance 3 months out of having the card for 24 mos, of which has been PIF, thank you very much.

Message 35 of 69
chalupaman
Super Contributor

Re: discover, fr

The minute they do this to me, I would cancel their card in a heartbeat and honestly it wouldn't be that big of a loss for me. Sorry to hear this happened dude.

Tradelines: Macy’s - $18k, Penfed Power Cash Rewards - $10k, Ethan Allen (TD Bank) - $5.7k, Kay Jewelers - $5.5k, Appliances Connection - $5.3k, Jared - $5.25k, Best Buy (Citi) - $5k, Dell Preferred Account - $3.5k, Samsung - $3.2k, Firestone CFNA - $3.2k, Capital One Platinum - $3k, Mercury MC - $2.25k, Williams Sonoma - $2.1k, Wayfair (Fortiva) - $2k, Amazon Store Card - $1.8k, Apple Card - $1.7k, NFCU cashRewards - $1.5k, CareCredit - $1.5k, B&H Photo - $1.5k, Adorama - $1.25k, Ebay MC - $1k, Sam’s Club MC - $1k, American Eagle - $1k, Ollo MC - $600, Mission Lane Visa - $500, NY & Company - $500, Walgreens - $500, Home Depot - $500, Target RED Card - $500, CapOne Secured MC 0 AF - $500, Penfed Overdraft LOC - $500

Current FICOS: Mid 640s-50s on all reports, Ch 7 BK D/C Aug 2019
Starting scores: EX - 534, EQ - 574, TU - 516 | Total TLs: $91k approx | Total Utilization: 17%, getting this back down
Message 36 of 69
red259
Super Contributor

Re: discover, fr


@juggalo9er wrote:

@FinStar wrote:

@juggalo9er wrote:

@Skye12329 wrote:
Why not just send them a income verification? Some lenders just want an annual update (i know cap1 asks me to update annually but not 4506 needed)

Did you possibly spook Discover?

and not any other creditor i have?

discover is not amex!


True, they are not AMEX, but they are still a lending institution and they can request this from time to time - just business.  Of course, it's your choice whether you decide to comply or close the account.


account closed.....1500 line not worth the hassle

1% utilization

3 year old chapter 7

perfect payments since

712 fico per barclay

only thing new are my navcheck and nrewards


How old was your discover account?

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 37 of 69
Billybob_TX
Frequent Contributor

Re: discover, fr

Agree, cancel it. Not worth the hassle factor for a card that will most likely never reach the limits of your other cards. Mine is way behind my argyle socks right now, they can't even give me the correct "bonus" for gas, even when the transaction clearly says "gas".

Message 38 of 69
yfan
Valued Contributor

Re: discover, fr


@red259 wrote:

I understand what you are saying about charge cards, but under this logic you would never get hit with an Amex FR if you do not have a charge card. That does not make sense.


Actually, to me it would make sense that you are far less likely to get hit with an FR (never say never) than those with charge cards, yes.

 


We have seen threads from people with different lenders hitting AA/FRs, which has nothing to do with charge cards and FRs can be triggered by things other than excessive spending in proportion to income.


Sure, but I never really made the argument though that income-expense ratio is the exclusive - or even a critical - factor in determining who gets FR'ed, and secondly, I am operating on the premise that Amex's FR is somewhat unique. I also don't see FRs as AA. It's an inquiry. Wheter AA is taken is determined based on the compliance of the cardholder and her or his ability to verify information. But the FR itself is not an AA, a PITA though it may be.

 


Most people on here with Amex started with an amex charge card because the advice has always been its a bit easier to get your foot in the door with a charge card over a revolver. You can't then draw the correlation between having an amex charge card and then being at more of a risk for an FR vs someone with just revolvers because the sample population here is skewed to the vast majority of people having or having had an amex charge card at one point. 


To be honest, we do not know this. Despite what the advice is, we have little evidence that most people follow that advice. But even if we stipulated to that for the sake of argument, it would seem to support the hypothesis that those with charge cards are more likely to get FRs than those without. If charge cards are easier to get/start with, that means it's available to people with weaker credit files - all the more reason for Amex to FR. Of course, it's taking the argument to an absurd end, but that's my point. The data we get from this forum and others are anecdotal and very much skewed. I was just pointing out that in this instance, the pattern does not seem to defy the logical conclusion.

 

For the record, the only Amex I have ever had is the Costco TE. Never had a charge card. 

Message 39 of 69
14Fiesta
Established Contributor

Re: discover, fr

It seems like more and more prime lenders are starting to do FRs as a basis of customer verification. I guess I don't blame them as it is the most accurate way to check currently. It may soon come to the day where you cannot refuse an FR and take your business elsewhere, as if you want a prime credit card from any lender you have to submit to an FR period.






EX FICO (AMEX): 728 (4/29/17) | TU FICO (Discover): 737 (4/7/17) | EQ FICO (Citi): 746 (3/28/17)
Message 40 of 69
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