topic Re: Discover It Secured Declined! in Credit Card Applications

Discover It Secured Declined!

soxfaininfl — Fri, 27 Dec 2019 08:06:01 GMT

I decided to put in one last app before the new year since I just got approved for a Cap1 Savor One with a 5K SCL. I tried the Discover prequalification site and go no offers due to "STATUS OF EXISTING/ PRIOR DISCOVER CARD ACCOUNT". Discover was included in my BK7 from 12/2016 for 5,400, so I tried for the secured card to see if I could get back in with them that way and got a fat decline! I thought I could get back in with them with alteast a secured card. I guess I was wrong!

I'd be putting my own money down, so never in my wildest dreams would I have thought I'd be declined for a secured card with the scores that I have. I know they are not great, but they are not terrible either. I was going to put a 300 dollar deposit down and as use this card for the 2% on gas. They pulled EX which sucks! Now I have 10 INQ's on EX in the last 24 months. I thought they would pull TU or EQ which I only had 7 and 5 INQ's.

Well I hope this helps others in a similar situation as myselft to avoid an HP. If the prequlaifaction site doesn't show you a secured card at then don't apply. Learn from my experience. What I've read also Discover doesn't do recons, so I'm out of luck there too.

Re: Discover It Secured Declined!

CreditInspired — Fri, 27 Dec 2019 12:45:10 GMT

I don’t understand why you thought you could get back in with Discover after burning them just a mere 3 years ago. $5.4K is a big piece of change.

It doesnt matter if you were going to open a secured card with $5K (your own money), all Discover sees is you burned them once, you havent learned a lesson because you’re reapplying, and they dont trust you ATM—maybe in another 4 years. And that’s a big maybe.

So the DP should be, if one includes a creditor in BK—It’s no soup for you.

But congrats on the Cap1 approval.

Re: Discover It Secured Declined!

Anonymous — Fri, 27 Dec 2019 13:50:20 GMT

Sorry about your denial. It’ll probably take awhile to get back in.,

That being said... there was someone on here that got a starting credit line with them for $8000 in 2018 after a BK discharge 2012. Not sure if others have gotten in sooner or not.

Edited to say: the person included Discover in their bankruptcy

Re: Discover It Secured Declined!

AllZero — Fri, 27 Dec 2019 14:33:02 GMT

Yup, best to avoid Discover for a while.

Re: Discover It Secured Declined!

soxfaininfl — Fri, 27 Dec 2019 15:48:59 GMT

CreditInspired wrote:
I don’t understand why you thought you could get back in with Discover after burning them just a mere 3 years ago. $5.4K is a big piece of change.

It doesnt matter if you were going to open a secured card with $5K (your own money), all Discover sees is you burned them once, you havent learned a lesson because you’re reapplying, and they dont trust you ATM—maybe in another 4 years. And that’s a big maybe.

So the DP should be, if one includes a creditor in BK—It’s no soup for you.

This person burned them for over10k only 2 years ago. I burned them for half that amount 3 years ago, and Discover offered a unsecured card for 3k to this person on 9/2019. I was offering my money as collateral to cover them, so your argument has no merit. Clearly creditors pick and choose who they want to let back in. My post was for educational purposes for other to learn from my mistake. Thanks for rubbing salt on the wound! Appreciate it!

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Discover-IT-approval-after-BK/m-p/5747235

Re: Discover It Secured Declined!

FinStar — Fri, 27 Dec 2019 16:19:29 GMT

@AllZero wrote:
Yup, best to avoid Discover for a while.

Good advice here plus placing the brakes on application activities. You'd be risking more denials than approvals at this stage of your journey.

Re: Discover It Secured Declined!

randomguy1 — Fri, 27 Dec 2019 16:25:18 GMT

"STATUS OF EXISTING/ PRIOR DISCOVER CARD ACCOUNT"

Not sure why you did not think it was possible. Is this a "you mean I have a chance moment?"

9 accounts in 12 months is plenty for anyone. Post BK and under 700, not sure why you would go the secured route. Time to start gardening.

Re: Discover It Secured Declined!

Anonymous — Fri, 27 Dec 2019 16:33:51 GMT

@randomguy1 wrote:
"STATUS OF EXISTING/ PRIOR DISCOVER CARD ACCOUNT"

Not sure why you did not think it was possible. Is this a "you mean I have a chance moment?"

9 accounts in 12 months is plenty for anyone. Post BK and under 700, not sure why you would go the secured route. Time to start gardening.

This.

Despite what reason they listed on the letter, the denial may have more to do with your profile (number of new accounts, score, etc.) than just the fact that you burned them in a recent BK.

As mentioned, time to tap the brakes and sit back for a while. Had you been a bit more conservative with adding new credit over the past year, the outcome might have been different.

I think your experience with this app provides some valuable DPs for others, but not for the reasons that you presented.

Re: Discover It Secured Declined!

Anonymous — Fri, 27 Dec 2019 16:48:56 GMT

@soxfaininfl wrote:

So the DP should be, if one includes a creditor in BK—It’s no soup for you.

This person burned them for over10k only 2 years ago. I burned them for half that amount 3 years ago, and Discover offered a unsecured card for 3k to this person on 9/2019. I was offering my money as collateral to cover them, so your argument has no merit. Clearly creditors pick and choose who they want to let back in. My post was for educational purposes for other to learn from my mistake. Thanks for rubbing salt on the wound! Appreciate it!

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Discover-IT-approval-after-BK/m-p/5747235

One of the biggest mistakes in myfico is comparing ones profile to another and expecting similar results. No one is trying to rub salt in, just stating facts. All profiles, while maybe similar, are different.
As a BK'r myself, I was declined for my first attempt at a secured card with Discover. 6 months later, I tried again and was approved for an unsecured Discover.
I know denials can be disappointing, I get it. But you also just had an amazing approval.
I also think a stint in the garden would do your profile a world of good and could render different results in the future. Good luck op.

Re: Discover It Secured Declined!

recoveringfrombk7 — Fri, 27 Dec 2019 16:51:21 GMT

I think the fact that you burned them AND you've been exhibiting credit-seeking behavior is what did it.

I thought it was common knowledge that Discover pulls EX. They pulled it for both my secured and unsecured cards. They use TU for CLI/secured graduation as far as I know. Definitely worth searching here and if you can't find something asking folks to avoid surprises like this.

Sorry you did not get what you wanted, but on the bright side you have plenty to work with.

Re: Discover It Secured Declined!

Spotsy — Fri, 27 Dec 2019 17:43:53 GMT

Sorry OP for the decline..it stinks, but remember, people with and without BKs and people sub 800 and over 800 get declined too. The reasons vary depending the the time of the app and the creditor. Creditors adjust their lending criteria from time to time. There is no 'constant' rule or set of criteria to get a guaranteed approval. One week/month a creditor is conservative, other times they are more liberal. The approval criteria will change and you will have no idea why,. Monitoring the MyFICO forums will help with clues on which creditors are in a giving mood.

You will be amazed at what 6 months of gardening will do....plus be selective on what you go after...compare rates, rewards, and be realistic on you feel you qualify for. Once again, read these forums...it's the best resource you have access too.

Re: Discover It Secured Declined!

soxfaininfl — Sun, 29 Dec 2019 05:10:12 GMT

@recoveringfrombk7 wrote:
I think the fact that you burned them AND you've been exhibiting credit-seeking behavior is what did it.

I thought it was common knowledge that Discover pulls EX. They pulled it for both my secured and unsecured cards. They use TU for CLI/secured graduation as far as I know. Definitely worth searching here and if you can't find something asking folks to avoid surprises like this.

Sorry you did not get what you wanted, but on the bright side you have plenty to work with.

I see that your BK is more recent than mine. Did you include them in your BK (how much also), and if you did how long did you have to wait to get back in with them? I'm going to garden for a year.

Re: Discover It Secured Declined!

soxfaininfl — Sun, 29 Dec 2019 05:17:34 GMT

@Anonymous wrote:
@soxfaininfl wrote:

So the DP should be, if one includes a creditor in BK—It’s no soup for you.

This person burned them for over10k only 2 years ago. I burned them for half that amount 3 years ago, and Discover offered a unsecured card for 3k to this person on 9/2019. I was offering my money as collateral to cover them, so your argument has no merit. Clearly creditors pick and choose who they want to let back in. My post was for educational purposes for other to learn from my mistake. Thanks for rubbing salt on the wound! Appreciate it!

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Discover-IT-approval-after-BK/m-p/5747235
One of the biggest mistakes in myfico is comparing ones profile to another and expecting similar results. No one is trying to rub salt in, just stating facts. All profiles, while maybe similar, are different.
As a BK'r myself, I was declined for my first attempt at a secured card with Discover. 6 months later, I tried again and was approved for an unsecured Discover.
I know denials can be disappointing, I get it. But you also just had an amazing approval.
I also think a stint in the garden would do your profile a world of good and could render different results in the future. Good luck op.

Stupid me for believing they would let me back in after burning them for only 5K 3 years ago via a secured card, but that other poster burned them for over 10k only 2 years ago and they gave him an unsecured card for 3k. I plan to garden for a year now.

Re: Discover It Secured Declined!

soxfaininfl — Sun, 29 Dec 2019 05:36:35 GMT

@randomguy1 wrote:
"STATUS OF EXISTING/ PRIOR DISCOVER CARD ACCOUNT"

Not sure why you did not think it was possible. Is this a "you mean I have a chance moment?"

9 accounts in 12 months is plenty for anyone. Post BK and under 700, not sure why you would go the secured route. Time to start gardening.

I'm trying to reestablish relationships with the creditors I had before the BK. Naturally I would think the best way would be the secured card route offering them collateral and the product changing to the card I want once my card would graduate. I have gotten back with with Sync, Capital One and TD bank so far. I plan to garden for a year now.

Re: Discover It Secured Declined!

recoveringfrombk7 — Sun, 29 Dec 2019 15:44:37 GMT

Nope. Probably the only major I did not burn. (BoA, Barclay's, Chase, Citi, Capital One, Comenity, HSBC, Synchrony/Walmart, Target/TD, Wells Fargo).

Re: Discover It Secured Declined!

soxfaininfl — Sun, 29 Dec 2019 18:01:07 GMT

@recoveringfrombk7 wrote:
Nope. Probably the only major I did not burn. (BoA, Barclay's, Chase, Citi, Capital One, Comenity, HSBC, Synchrony/Walmart, Target/TD, Wells Fargo).

Gotcha. At least you didn't burn Amex also. You can apply with them once your BK is 5 years old. Luckily I didn't burn Wells Fargo or BOA, so they are next after I garden for a year. I'm saving up the money also to pay back Amex (2,500), so I can get back with them. It's the only way to get back with them. Otherwise you'd be blacklisted for who knows how long. I have no hope for Chase. I even bank with them (burned for 5,800).

Re: Discover It Secured Declined!

JoeLuvsHisCredit — Sun, 29 Dec 2019 17:27:25 GMT

Sorry OP. Good luck on your future goal cards

Re: Discover It Secured Declined!

KJinNC — Sun, 29 Dec 2019 18:02:27 GMT

I think as usual, it's probably a combination of factors, but I think the main factor was burning them. They probably approached it from the perspective of "that person burned us, so I don't think we'll approve them, but let's look at the rest of their info to see if we should approve them anyway." The other person who was approved probably had other aspects of their profile that impressed Discover.

This board in general will nearly always advise everyone to go slow(er). That is often good advice, but not always, and I doubt very much that your number of new accounts and inquiries alone would lead to a denial for a secured Discover. I have significantly more new accounts and significantly more inquiries and was just approved for a $5k Apple Card. Apple and Discover are two different companies, but we are talking about a secured card. I don't think that is "the" issue, but it might have been a secondary issue that kept them from changing their mind about the "you burned us" aspect. JMO. Congrats on the approval!

Re: Discover It Secured Declined!

Remedios — Sun, 29 Dec 2019 19:15:28 GMT

"This board" advice to go slower is not there to kill a joy of one app per day, but because it's applicable to most profiles.

When people are new to credit, they want everything at one. Lenders dont wanna, at least the ones that would have "keeper" cards. So they go ahead and get bunch of cards they have no use for.
You can spot those people by "It was stupid, should I close these 15 cards" threads.

When people are rebuilding, they want whatever they lost back as soon as possible. Again, most lenders dont wanna. They want to see decent chunk of time pass between financial issues and extending new credit.
They are covering their bum because they already experienced a loss. Just because someone has a better job now or their situation changed recently, doesnt mean they've adopted healthier financial habits.

With all that said, any data point is valuable. While OPs expectations weren't quite reasonable, nor is comparing profiles fitting into reasonable category, it's important to get as many outcomes as possible.
All the knowledge on this forum is crowdsourced and if our reactions are too harsh, people will stop sharing negative experiences. That would prevent some of us from knowing what to do in similar situations.

I dont have to follow their logic to see value in what they are saying. I can extrapolate and assign value to whatever I see in their post as being informative.

It's perfectly fine to disagree, facepalm, and wonder what on earth you just read, but how we go about disagreeing is just as important as ideas we disagree on.
This isn't about attempting to be nauseatingly sweet all the time, it's about restricting information flow.

OP, go garden.

Re: Discover It Secured Declined!

FinStar — Sun, 29 Dec 2019 19:50:49 GMT

As the OP has already indicated the next steps with their credit journey surrounding the outcome of their application, and at the risk of the discussion going further in circles (i.e. plenty of opinions/advice already shared), this thread is now locked and closed to new messages.