topic Re: Another Discover CC in Credit Card Applications

Another Discover CC

Swatch — Tue, 03 Nov 2020 02:43:08 GMT

I tried their preapproval form and was told that I have no offers because I have too many accounts with them. I only have 1 CC, 1 checking, and 1 savings. Should I close my savings account? I only opened the savings because I thought it would be a positive thing. I thought banks liked it when you used more of their products. I could also close my checking because honestly I am disappointed with some aspects of it.

If I apply and get declined by their system, would I almost definitely be allowed a new card if I decrease my CL on my existing card?

Or could a rep do it without a hard pull? I do have too many inquiries which are around 6 months old.

Re: Another Discover CC

Irv02 — Tue, 03 Nov 2020 03:05:47 GMT

Is your Discover card 1 years old yet? You have to wait until your first Discover card is 1 years old before they let you apply for a second card.

Re: Another Discover CC

FinStar — Tue, 03 Nov 2020 03:08:04 GMT

How old is your current Discover CC? Have you had any other Discover CCs in the past? Do you keep any high deposit balances on either checking or savings?

Definitely do not lower the CL on your current account as that's not necessary. Typically, if you were to qualify for another Discover card and your profile was a bit on the fence for an approval, they sometimes offer the option to carve out a portion of the CL from your existing account to open the new one.

Re: Another Discover CC

Slabenstein — Tue, 03 Nov 2020 03:11:54 GMT

If they're telling you you have no cc offers due to too many accounts with them, that's referring to cc's only. You can't have more than two cc's w/ Discover, but having deposit accounts w/ them doesn't affect that number. (Really, they would love it if all of their cardholders also had deposit accounts.) How old is your Disco cc? Your first card needs to be a year old before you can app for your second.

With regards to your other questions: 1) Requesting a CLD on your current Disco won't reverse a denial on an app for a second card. The only case where that might happen would be if your CL was so high that you were at the absolute max limit they could extend to someone w/ your income, that was the only reason they denied the app, and you reconned the denial. 2) A Disco app will be an HP regardless of how you apply.

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 03:40:10 GMT

@FinStar wrote:
How old is your current Discover CC? Have you had any other Discover CCs in the past? Do you keep any high deposit balances on either checking or savings?

Definitely do not lower the CL on your current account as that's not necessary. Typically, if you were to qualify for another Discover card and your profile was a bit on the fence for an approval, they sometimes offer the option to carve out a portion of the CL from your existing account to open the new one.

My current is something like 1.3 years old. I did have a Discover CC in the past which went to collections, so maybe they're still worried about that. It's been over 10 years. I haven't had much money in my checking or savings with them.

Re: Another Discover CC

FinStar — Tue, 03 Nov 2020 03:42:20 GMT

@Swatch wrote:
@FinStar wrote:
How old is your current Discover CC? Have you had any other Discover CCs in the past? Do you keep any high deposit balances on either checking or savings?

Definitely do not lower the CL on your current account as that's not necessary. Typically, if you were to qualify for another Discover card and your profile was a bit on the fence for an approval, they sometimes offer the option to carve out a portion of the CL from your existing account to open the new one.
My current is something like 1.3 years old. I did have a Discover CC in the past which went to collections, so maybe they're still worried about that. It's been over 10 years. I haven't had much money in my checking or savings with them.

Was that previous account settled or was it uncollectable/unpaid?

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 03:43:15 GMT

@Slabenstein wrote:
If they're telling you you have no cc offers due to too many accounts with them, that's referring to cc's only. You can't have more than two cc's w/ Discover, but having deposit accounts w/ them doesn't affect that number. (Really, they would love it if all of their cardholders also had deposit accounts.) How old is your Disco cc? Your first card needs to be a year old before you can app for your second.

With regards to your other questions: 1) Requesting a CLD on your current Disco won't reverse a denial on an app for a second card. The only case where that might happen would be if your CL was so high that you were at the absolute max limit they could extend to someone w/ your income, that was the only reason they denied the app, and you reconned the denial. 2) A Disco app will be an HP regardless of how you apply.

Ok, so I guess they're saying that 1 is plenty and 2 would be too many. I really only want a second because I want better cashback. My first card had double cashback for a year and now it's not very good cashback. Of course I don't want to close the first completely because of AAoA, but I would be happy to have a low CL on this and get a second. However, it seems like it won't be happening for me soon.

That's disappointing, but makes sense.

Re: Another Discover CC

Slabenstein — Tue, 03 Nov 2020 03:45:20 GMT

Is your current card secured or unsecured?

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 03:49:48 GMT

@FinStar wrote:
Was that previous account settled or was it uncollectable/unpaid?

Yeah, unpaid. I thought I was forgiven since it had been 10 years and they gave me an unsecured card. And two CLIs since getting this card.

I will just forget about Discover for a while because of the info I was told above. I am focusing on a Chase business card for the best cashback.

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 03:54:05 GMT

@Slabenstein wrote:
Is your current card secured or unsecured?

It's unsecured.

I feel like their soft pull may be considering my student loans because of what the preapproval response said. I don't recall right now what it said, but a couple things might suggest they were worried about the student loans. Even though those are in closed status (not yet due). i.e. If my student loans were not considered at all, I feel like they wouldn't have put those reasons in the preapproval response.

Re: Another Discover CC

Slabenstein — Tue, 03 Nov 2020 04:00:12 GMT

@Swatch wrote:

@FinStar wrote:
Was that previous account settled or was it uncollectable/unpaid?
Yeah, unpaid. I thought I was forgiven since it had been 10 years and they gave me an unsecured card. And two CLIs since getting this card.

I will just forget about Discover for a while because of the info I was told above. I am focusing on a Chase business card for the best cashback.

Since they gave you a new card recently, they're probably not holding the old CO against you anymore. You could call or chat w/ a Disco rep and see if they can tell you anything about why you're getting a too-many-Discos message w/ only one card, but otherwise, yeah, I'd probably work on growing w/ other lenders for a bit and let Miss Disco simmer until she warms up more. Nothing's really going to match double cash back on It CB's rotating categories, but you could look into 2%+ flat cb cards or category cb cards to complement what you're getting on your Ink.

Re: Another Discover CC

Slabenstein — Tue, 03 Nov 2020 04:06:36 GMT

@Swatch wrote:
@Slabenstein wrote:
Is your current card secured or unsecured?
It's unsecured.

I feel like their soft pull may be considering my student loans because of what the preapproval response said. I don't recall right now what it said, but a couple things might suggest they were worried about the student loans. Even though those are in closed status (not yet due). i.e. If my student loans were not considered at all, I feel like they wouldn't have put those reasons in the preapproval response.

By closed status, do you mean that you've recently left school and but have yet to make your first payment? Since you wouldn't have any late payments, the only way I'd think that SLs could negatively affect an approval would be if the monthly payment amount punched up your DTI too high.

Re: Another Discover CC

Anonymous — Tue, 03 Nov 2020 05:15:19 GMT

@Slabenstein wrote:
@Swatch wrote:
@Slabenstein wrote:
Is your current card secured or unsecured?
It's unsecured.

I feel like their soft pull may be considering my student loans because of what the preapproval response said. I don't recall right now what it said, but a couple things might suggest they were worried about the student loans. Even though those are in closed status (not yet due). i.e. If my student loans were not considered at all, I feel like they wouldn't have put those reasons in the preapproval response.
By closed status, do you mean that you've recently left school and but have yet to make your first payment? Since you wouldn't have any late payments, the only way I'd think that SLs could negatively affect an approval would be if the monthly payment amount punched up your DTI too high.

No matter what, Disco tells me I am "sufficiently obligated" due to my defaulted SLs. Even if they werent, I guess they do not like 135k in SL with 135k income....

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 17:18:10 GMT

By closed status, do you mean that you've recently left school and but have yet to make your first payment? Since you wouldn't have any late payments, the only way I'd think that SLs could negatively affect an approval would be if the monthly payment amount punched up your DTI too high.

I think all of the bureaus show it as "CLOSED". I am enrolled so it's deferred, but it seemed like it was counting in my utilization or something. They said something about high balances and I only have one high balance besides student loans.

I guess "high balances" might just refer to the one just like "too many accounts" seems to refer to the one CC.

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 17:20:38 GMT

@Anonymous wrote:
@Slabenstein wrote:
By closed status, do you mean that you've recently left school and but have yet to make your first payment? Since you wouldn't have any late payments, the only way I'd think that SLs could negatively affect an approval would be if the monthly payment amount punched up your DTI too high.
+1

No matter what, Disco tells me I am "sufficiently obligated" due to my defaulted SLs. Even if they werent, I guess they do not like 135k in SL with 135k income....

Defaulted should be very different from no late payments ever. But it may not be because they may be assuming I'll owe payments soon. I think I read that lenders may assume unless you prove that you won't have payments in the next 2 years or 1 year.

Re: Another Discover CC

Swatch — Tue, 03 Nov 2020 17:31:22 GMT

@Slabenstein wrote:
Since they gave you a new card recently, they're probably not holding the old CO against you anymore. You could call or chat w/ a Disco rep and see if they can tell you anything about why you're getting a too-many-Discos message w/ only one card, but otherwise, yeah, I'd probably work on growing w/ other lenders for a bit and let Miss Disco simmer until she warms up more. Nothing's really going to match double cash back on It CB's rotating categories, but you could look into 2%+ flat cb cards or category cb cards to complement what you're getting on your Ink.

I didn't do rotating categories. Just had 2% after the doubling for most purchases and 4% for a couple purchases. I don't yet have a Chase, Citi, BofA, etc so I am at 1% cashback for most purchases. I just want a Chase cashback card, but Chase doesn't seem as forgiving as Discover. I think Chase will approve me for business (and not approve me for personal). I'll live with a low CL if I have to.