topic Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!! in Credit Cards

WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 13:51:25 GMT

This makes the 4th thread ive seen in two days on DISCOVER taking AA -- shocking really, as I never have read Discover AA threads before. They must be taking a page out of Comenity's book or Barclay.

Anyway, my Best friend has had his Discover account for over a year, and yesterday went to login to pay his bill and it stated "ACCOUNT CLOSED" at the top -- he had a CL of $11,500 !!!! Called in, and told that they "recently completed a review and closed his account for (GET THIS) too many recent inquiries, new accounts and spike in available credit". He was naturally livid, and tried to recon with a Sr Analyst and a call to EO, to no avail -- apparently once DISCOVER shuts you down you're out for 6 months minimum. Thank GOD I have never been able to get approved with Discover lol !!!

Naturally, people on these boards are NOT your everyday consumer....many of us engage in credit behavior that lenders deem risky, it is what it is -- my friend however doesnt even use MFico, yet loves to open new accts and app. Guess it bit him, this is oging to kill UTIL overall I'm thnking, but I dont know entire lineup.

As a note, the Analyst told him that DISCOVER is very recently reviewing many accounts and taking action "as needed to limit risk and will be closing/CLDing as necessary during this sweep". Ouch indeed!!!!

Best of luck all Discover-people! Watch the new apps;/accts/lates !!

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:00:16 GMT

Those are pyramiding reasons. Interesting.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Loquat — Fri, 22 Apr 2016 14:00:24 GMT

Nice heads up to those with Discover. I've never been their good graces...so no worries here.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:08:40 GMT

I was thinking the same Loquat. I will obviously stop trying with them forever now lol. I understand a lenders right to take AA, but when you see a spike like this in a matter of DAYS it's concerning and a bit absurd. Cld, closure -- all within rights. I just want nothing to do with a lender who does it often, or in large spates.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:13:05 GMT

Sorry to hear about your friend. Lets address his utilization... How high was his utilization? How many new accounts? Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:18:20 GMT

@Anonymous wrote:
Sorry to hear about your friend. Lets address his utilization... How high was his utilization? How many new accounts? Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.

+1. I would not want anyone on the board to be concerned unnecessarily. Discover has many more situations of being very good to people.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:20:43 GMT

Yes it's me -- I agree it's just very strange to see 4 threads in two days about Any ONE bank taking AA let alone Discover, whom you never hear of doing this.

I don't know all his stats, but I do know:

Scores 700-720 across board.
Income $80k
overall Util roughly 30%
About 10 new accounts (!!!)
Many INQs

So in my viewpoint, nothing Overly Alarming but I can see where they'd get a bit spooked. We're not talking sudden lates showing up, collections or COs though. And 30% Util isn't an OH MY GOD utilization by any means. Heck I've carried 70% back in the day with no AA for a few months at a time.

I really believe the credit game is like roulette. All depends where the ball stops

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

kdm31091 — Fri, 22 Apr 2016 14:22:50 GMT

Any lender can and does take AA. You hear of it more with some than others but ultimately risk factors are risk factors and when they become significant enough these things happen. I'm sorry to hear it though.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

someone379 — Fri, 22 Apr 2016 14:25:13 GMT

Is that 10 new accounts within the past couple monhts, or is that 10 new accounts over the past 2 years+?

That could be a lot of activity... I guess I wonder because I have 11 accounts, most in the last 2 years, but only a couple less than 6 months old...

Any ballpark on total credit available?

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:25:31 GMT

I'm interested in hearing the details of his account too. As a new cardholder, I'd like to know if closure is possible even if my Discover history is perfect.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:29:39 GMT

@Anonymous wrote:
Yes it's me -- I agree it's just very strange to see 4 threads in two days about Any ONE bank taking AA let alone Discover, whom you never hear of doing this.

I don't know all his stats, but I do know:

Scores 700-720 across board.
Income $80k
overall Util roughly 30%
About 10 new accounts (!!!)
Many INQs

So in my viewpoint, nothing Overly Alarming but I can see where they'd get a bit spooked. We're not talking sudden lates showing up, collections or COs though. And 30% Util isn't an OH MY GOD utilization by any means. Heck I've carried 70% back in the day with no AA for a few months at a time.

I really believe the credit game is like roulette. All depends where the ball stops

In your viewpoint, it might not be alarming but to the lender it is for them to take such an action. Remember, all credit profiles are not the same and if you carried 70% back in the day and nothing happen does not validate anything.

10 new accounts is alot for credit profile along with many many inquiries. The banks takes alot in consideration when calculating the risk of a profile and it is the algorithms that determine such things..

It is unfortunate but tell your friend to chill out a bit on the credit front and let his/her accounts age.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:31:21 GMT

I think the 10 new accounts is in past Year. Not all super recent. Same with INQs.

Just got a text from him lol -- telling him all about myfico. His overall available credit is $90,000 which is lower than mine by a bit. Never had any lates or anything derog EVER. so it's odd and out of the blue but I guess it happens.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:32:59 GMT

As noted the Analyst told him that they're stepping up reviews this quarter and many accounts will be scrutinized. So something is changing it seems over there

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:33:32 GMT

I think it goes like this...

New Account - OPENED: Spend large AND SO ON...keeping a balance. Raises a Flag!

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:33:42 GMT

How many inquiries exactly?

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

taxi818 — Fri, 22 Apr 2016 14:34:57 GMT

@Anonymous wrote:
@Anonymous wrote:
Sorry to hear about your friend. Lets address his utilization... How high was his utilization? How many new accounts? Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.
+1. I would not want anyone on the board to be concerned unnecessarily. Discover has many more situations of being very good to people.

@Anonymous im sorry for your friend. But Discover has been the exact opposite for me. I have had a very large balance on my Discover the last year as a result of paying of my Taxes and taking my time on it. instead of shut me down with 70% usage they gave me a credit limit increase. Started @ $2500 and at 10k now. still have not paid the balance off. Just this week they sent me 2 BT checks for another 0% 12 month period and told me i could write the check to myself and pay off some of my other balances. which will not happen until i come back from vacation for a serious pay down plan. Then again ive not applied for another until this week for the last night months. 2 new credit cards. Ive only added 3 accounts in the last year. 4 if you count my car. Discover to me is the best.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:36:38 GMT

@taxi818 wrote:
@Anonymous wrote:
@Anonymous wrote:
Sorry to hear about your friend. Lets address his utilization... How high was his utilization? How many new accounts? Also, these things happen but lets not completely write off Discover.

These are account closures are in minority compared to other lenders and if someone is interested in applying, I'd advise them to go for it. Often times, there is more to closures than these banks let on.
+1. I would not want anyone on the board to be concerned unnecessarily. Discover has many more situations of being very good to people.
@Anonymous im sorry for your friend. But Discover has been the exact opposite for me. I have had a very large balance on my Discover the last year as a result of paying of my Taxes and taking my time on it. instead of shut me down with 70% usage they gave me a credit limit increase. Started @ $2500 and at 10k now. still have not paid the balance off. Just this week they sent me 2 BT checks for another 0% 12 month period and told me i could write the check to myself and pay off some of my other balances. which will not happen until i come back from vacation for a serious pay down plan. Then again ive not applied for another until this week for the last night months. 2 new credit cards. Ive only added 3 accounts in the last year. 4 if you count my car. Discover to me is the best.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:41:16 GMT

Unsure on INQs.

I'm happy for those who have had great experiences and I'm sure overall Discover is a great lender to many. Just a thread to point out it is happening to some as a cautionary tale is all

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

Anonymous — Fri, 22 Apr 2016 14:42:30 GMT

@Anonymous wrote:
As noted the Analyst told him that they're stepping up reviews this quarter and many accounts will be scrutinized. So something is changing it seems over there

@Anonymous,

Have you actually seen your friends credit report or are you just going by what he is telling you hence the creation of this thread? Because if that is so, then we are just basing a discussion on "he said he only had 30% utilization, he said he only had 10 new accounts" and so on and so forth....

I think there is more to the story and it is unfortunate this happen. But without knowing much and not having your friend to answer such questions how many inquiries and such, I wouldn't be so quick to jump to conclusion about their action being absurd if I were in your shoes.

Happy Friday to you.

Re: WOW!! DISCOVER is really at it: BF's ACCOUNT CLOSED !!!

someone379 — Fri, 22 Apr 2016 14:43:24 GMT

Well... I hope this doesnt happen to me... I would hate to lose out on all that double cash back I have coming!