topic Re: Discover Pre-Approval/Income Tax Documents in Credit Card Applications

Discover Pre-Approval/Income Tax Documents

jamerican-girl — Wed, 24 Aug 2022 13:39:52 GMT

Good morning everyone! I am in the garden and not looking to apply for any more credit cards for a while, but I am a little curious about Discover. Last year, I was approved for an IT card with a limit of $5,000 but I closed the account when I got an email from Equifax on their behalf requesting my income tax information. I felt that it was a little too intrusive, especially since Equifax had a data breach a while back.

Fast forward to 2022, I did the prequalification online just to see what would come back and I was pre-approved for two cards. I didn't pull the trigger because I don't want any new cards right now, but I am curious if the tax returns is standard for everyone who gets approved or it's done randomly for some reason. Thank you for any feedback.

Re: Discover Pre-Approval/Income Tax Documents

SUPERSQUID — Wed, 24 Aug 2022 13:40:40 GMT

I have been seeing posts about this. I dont know what triggers it but apparently nothing about my profile triggers it. I got a discover it last year 3k sl thru the prequal and they didnt ask, then last month i got a 2nd discover it 6k sl thru the prequal no ask, then this week i got a cli on the first card to 4500 no ask.

im retired, 36k income

Re: Discover Pre-Approval/Income Tax Documents

OmarGB9 — Wed, 24 Aug 2022 14:07:37 GMT

It's not that random... there have been several reports of that income verification request the last couple of years.

Re: Discover Pre-Approval/Income Tax Documents

jamerican-girl — Wed, 24 Aug 2022 14:10:15 GMT

Supersquid -- Thank you for the response. I'm curious what the trigger is, if any. I didn't use household income when I was approved the last time. When I did the prequalification recently I did.

Re: Discover Pre-Approval/Income Tax Documents

bobnathan0295 — Wed, 24 Aug 2022 22:31:27 GMT

I have never had an income verification

Re: Discover Pre-Approval/Income Tax Documents

Jnbmom — Wed, 24 Aug 2022 22:35:53 GMT

I have seen this more often with an additional card, but have also seen with one's first card as well.

Re: Discover Pre-Approval/Income Tax Documents

SDMarik — Wed, 24 Aug 2022 22:51:34 GMT

It's not unheard of, I would guess that with uncertainty and volatilty on the rise it might become more commonplace than it has been for the past couple of years. I don't think anyone can give you an exact "this is what triggers needing income verification", as no one really know for sure EXACTLY what causes issuers to make some of the decisions they do.

Re: Discover Pre-Approval/Income Tax Documents

805orbust — Wed, 24 Aug 2022 23:20:32 GMT

Weird. Discover period is a mystery to me. I never had them ask, however nothing surprises me in this current climate and where we are in the cycle.

Re: Discover Pre-Approval/Income Tax Documents

mbauza86 — Fri, 26 Aug 2022 03:16:38 GMT

@jamerican-girl wrote:
Good morning everyone! I am in the garden and not looking to apply for any more credit cards for a while, but I am a little curious about Discover. Last year, I was approved for an IT card with a limit of $5,000 but I closed the account when I got an email from Equifax on their behalf requesting my income tax information. I felt that it was a little too intrusive, especially since Equifax had a data breach a while back.

Fast forward to 2022, I did the prequalification online just to see what would come back and I was pre-approved for two cards. I didn't pull the trigger because I don't want any new cards right now, but I am curious if the tax returns is standard for everyone who gets approved or it's done randomly for some reason. Thank you for any feedback.

I have gotten it at least TWICE ... in 2019 (almost a year of having the card) and then when I got my second Discover card in 2021.

I don't recall what might have triggered it the first time, however, for the second time, I think it was a combination of recently getting a CLI and also getting a second card. Discover had recently bumped the CLI on my first card to 6k, and then the second card got approved for 5k, and shortly after getting the approval, I got the tax verification request.

I do have a high income, I wondered if maybe they thought I was lying? Maybe they do it when income is high? Or who knows? It's just so silly, why not ask for paystubs or bank statements? Not only do I think it's intrusive to ask for our tax documents....but then the AUDACITY of taking forever to verify the data WHILE they have literally FROZEN your accounts. Yep, they take their sweet time and then you CANNOT use your cards. Imagine if you were planning a trip or something and were hoping to use it. PFTTT. I have a love and hate relationship with Discover.

Re: Discover Pre-Approval/Income Tax Documents

Suzette2 — Sat, 27 Aug 2022 13:17:00 GMT

@jamerican-girl wrote:
Good morning everyone! I am in the garden and not looking to apply for any more credit cards for a while, but I am a little curious about Discover. Last year, I was approved for an IT card with a limit of $5,000 but I closed the account when I got an email from Equifax on their behalf requesting my income tax information. I felt that it was a little too intrusive, especially since Equifax had a data breach a while back.

Fast forward to 2022, I did the prequalification online just to see what would come back and I was pre-approved for two cards. I didn't pull the trigger because I don't want any new cards right now, but I am curious if the tax returns is standard for everyone who gets approved or it's done randomly for some reason. Thank you for any feedback.

No. I got a card after preapproval. No further docs. Then my husband got one and I'm an AU. No further docs.

Re: Discover Pre-Approval/Income Tax Documents

Iusedtolurk — Wed, 31 Aug 2022 09:08:33 GMT

@jamerican-girl wrote:
Good morning everyone! I am in the garden and not looking to apply for any more credit cards for a while, but I am a little curious about Discover. Last year, I was approved for an IT card with a limit of $5,000 but I closed the account when I got an email from Equifax on their behalf requesting my income tax information. I felt that it was a little too intrusive, especially since Equifax had a data breach a while back.

Fast forward to 2022, I did the prequalification online just to see what would come back and I was pre-approved for two cards. I didn't pull the trigger because I don't want any new cards right now, but I am curious if the tax returns is standard for everyone who gets approved or it's done randomly for some reason. Thank you for any feedback.

@jamerican-girl I just got my newly turned 18 year old nephew a Student Card and no POI was requested. All he was asked for was a school email address (freshman).

Had mines little over 2 years and none requested (had 3 CLIs so far 1 Auto and 2 Requested) nothing asked for.

Re: Discover Pre-Approval/Income Tax Documents

Beefy1212 — Wed, 31 Aug 2022 09:34:40 GMT

@mbauza

Citi recently did the same to me, I have a highish income but nothing special, First they froze my application when I called in they said it was for income verification and I could use a number of documents to verify, when the letter came it was you must show us your full tax returns and by submitting the form I agreed to let them run my credit a second time.

I also felt it was an invasion of my privacy like they cared more about the financial disclosure than verifying my income, and the second hard pull was frankly over the top so I told them to stuff it. Will eat the 2% cb on dinning and get a savor or altitude go instead.

I highly suspect the main purpose from demanding tax returns instead of w-2 or pay stubs is the insights on investment accounts. So they can market follow on products.

I even asked them what they would have done had I said I was 19 and didn't file taxes the previous year? The CSR had no answer, I then pointed out the ivers request is for loans not credit, and specifically mentions when it is to be used on irs.gov. She had to put me on hold for that one.

Re: Discover Pre-Approval/Income Tax Documents

CaptinVantage — Wed, 31 Aug 2022 17:05:47 GMT

I fully believe these requests are for data mining and have nothing to do with extending credit. When discover asked me to fill one out I emailed the executive customer care and laid out why I won't be filling it out or authorizing it and they could keep their cars if they needed that kind information for a credit card. And several weeks went by never heard anything and magically discover had finished their review and my account was good go. I assuming I'm a lucky one but that's just too much . I have other cards.

Re: Discover Pre-Approval/Income Tax Documents

Bill77 — Wed, 31 Aug 2022 17:28:54 GMT

I've never been asked but I would never submit POI, bank records, or tax documents for any credit card. I take issue with a company charging ~17% interest and then trying to underwrite it like a mini-mortgage. Not happening.

Re: Discover Pre-Approval/Income Tax Documents

OmarGB9 — Wed, 31 Aug 2022 21:33:36 GMT

@Bill77 wrote:
I've never been asked but I would never submit POI, bank records, or tax documents for any credit card. I take issue with a company charging ~17% interest and then trying to underwrite it like a mini-mortgage. Not happening.

I think POI is fair; after all, they need to make sure you really do make the money you say you do when filling out the income box.