topic Re: Discover IT Preapproval Question. Approval Odds from previously closed account. in Credit Card Applications

Discover IT Preapproval Question. Approval Odds from previously closed account.

Anonymous — Sat, 21 Sep 2019 22:53:01 GMT

Hello Everyone,

Back in Febuary of 2018, Disover sent me a letter stating my Discover IT credit account was being terminated. This was due to "internal reviews" that didn't match their business practices. A sample of the letter is below,

>>> Dear ****,As part of normal account review procedures, we have reviewed your account. Based on this review, we are closing your credit line to further transactions. The following reason(s) will help explain our decision:- WE ARE NO LONGER ABLE TO MEET YOUR SERVICING NEEDS. Our credit decision was based in whole on the information found on your account.<<<

I had adding Authorized Users onto the account, which is likely where the issue arose from. The account was never late, opened in early 2013, and was active for about 5 years. I had several CLIs during this time and the limit was 6.5K when it was closed. My credit report shows "closed, paid" "Account closed by credit granter". I never left a balance on my card either, and sent them the full $1400 payment owed the next month. I never carried balances either, unless it was during a 0% interest period.

I had tried several times using Discover's Preapproval tool online to run my name to see if I'd get any offers, I was immiediatly told I'd get a later in 7 to 10 days and that they had no offers. The letters said I wasn't elibible for any offers due to a "past account status with discover". So obviously in the system the blacklisted me, for a period of time at least.

I now am getting offers for these cards again, about 1.5 years later. I also can use the tool, and get preappovals again too. BUT I worry when they do the "offical credit pull" that the old account will be realized and that could trigger a denial. OR it could result in the newly opened account to be closed. Obvisoluy though, Something has occurred between last year to now, recently, for me to reflect postively in their systems, or the preapproval wouldn't work - like it now does. I tried even just in March/April of this year and it didn't work - then tried again July/Aug and it does.

As a result, I now no longer add anyone to my cards, regardless of friends/family etc. I never gave the ones I added to my account, an actual card. BUT I failed to realize if they get added to another card within that credit card company, and those other relationships turn negative - everyone involved with that AU could also be targeted. I've realized and learned from my mistake. Luckly - this didn't cause any damage to my credit whatsoever. Not even to my length - or score. I have many other cards, I just love Discover when I was with them. Whats the chances of them taking me back?

I also have no lates, no collections, no high debt, just paid off a car loan. I also have the same job then and make even more now. I'm hoping since I never left any money owed, and was never late, that it was just a slap on the wrist for a year or so - and they let me back in.

Thanks!

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Jnbmom — Sat, 21 Sep 2019 23:00:10 GMT

@Anonymous

I see you have a discover listed in your signature, do you currently have one card?

Well you can check their prequalify link, no harm in checking to see if there is an offer, of course their prequalify is usually solid but have seem rare declines.

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Anonymous — Sat, 21 Sep 2019 23:02:30 GMT

That is the one I mentioned that got closed. How do I update that signature?

Thank you for your reply btw!

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Jnbmom — Sat, 21 Sep 2019 23:06:35 GMT

@Anonymous

Just go to your "my settings" and then personal information and you can update your signature.

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Anonymous — Sat, 21 Sep 2019 23:12:28 GMT

Thanks! Got it updated!

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

CreditInspired — Sat, 21 Sep 2019 23:40:42 GMT

How many AU users did you have?

Did you provide their SSNs?

Did AU do something to cause your account to be closed down?

I ask these questions because I always get offers to add AUs so I’m not understanding the reason you got shut down.

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Anonymous — Sun, 22 Sep 2019 00:23:50 GMT

I had 3 total. I did provide their SSN cards and even drivers license as well.

The intial time I approved them to be on the card it only wanted their name and DOB. Then, Discover requested more docs for approval.

I'm not sure what the AUs did to this day. I still don't understand the sitation. I think they were added to either to many Discover accounts, or even to way to many AU accounts in general. This might have caused a red flag with Discover.

Best practice I'm following is to never put anyone else on cards. Because you never know what that person's history is with that bank, or their past accounts. Unless of course it was a spouse etc.

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

CreditCuriosity — Sun, 22 Sep 2019 00:42:47 GMT

You are off their black list. So if you are pre-qualified through their site at a good apr and want the card again by all means go for it most likely you will be approved as they soft pulled your credit during the pre-approval and their internal records as well. Yes their systems have internal records of you prior, etc, but if it is letting you get offers now and you have been getting mailers then you should be golden. You have been removed from their naughty list for whatever caused you prior issues with them whether it was alot of AU's or other things. If you want the card go for it otherwise if you have better cards and they left a bitter taste in your mouth then you can simply pass. Best of luck either way you proceed

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

joltdude — Sun, 22 Sep 2019 02:26:28 GMT

The magic MyFico 8 ball says.... Outlook good....

If you want one, go for it... =)

Wonder if youll get double cashback on it =)

I'm actually rather fond of Discover myself... Found my way to the front of the Disco Train awhile back...

-J

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

AverageJoesCredit — Sun, 22 Sep 2019 13:37:07 GMT

Go for IT Just not a secured

Re: Discover IT Preapproval Question. Approval Odds from previously closed account.

Anonymous — Sun, 22 Sep 2019 13:59:17 GMT

So, I tried applying today. They gave me the denial and said I'd get a letter explaining why. Most likely the "past account status message" again. I'll probably be out of that bank for atleast another couple of years. It was a long shot to get it since they just closed me Feb 2018.

But at any rate, atleast I know now. Discover did hard pill Experian, which I get isn't so odd. Kind of annoying, but its business. I'll get back with them sooner or later. I'll just enjoy what I have for now, and let those mature. I've got some good banks behind me already (knock on wood). The most important thing is I've learned from past mistakes about adding authorized users.

Just remember guys, those mailers, pre qualifying, or even preapproval dont mean that much. You can still be denied quickly.

Just updating everyone here so that you guys are aware. I'm not even salty at Discover, they done there job, something an AU did they didnt like and they got spooked. Know your bank, their policy, and who you add to your cards. This is the best way to protect yourself, credit, and present accounts.

Thanks!