topic Re: Discover Financial Services/Blacklisting in Credit Cards

Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 17:11:55 GMT

Yesterday I got a "Pre-Approved" offer from Discover Financial Services for a "Preferred Account", which looks like an installment loan they are peddling for debt consolidation. Offer says the APR starts at 7.99%. Looking at the chart in the disclosure the rate is tiered at 7.99 or 8.99/11.99/13.99/18.99. Does anybody know anything about this? I didn't think Discover was in this business. Sounds like Citi Financial, which I would not touch with a ten foot pole.

Also, I recently got a mailed offer for a Discover card directly from Discover, which looked pretty good. I find this all very interesting since I burned Discover in the past (unpaid CO now off CR's/outside SOL). Are these offers boobytrapped or does Discover really not blacklist forever?

I also got the famous Barclay "up to $15K" offer as well. Said before here that I would not touch that one with a ten foot pole and right now I'm going to stay with that statement. Too unpredictable for me. However, I do seem to be getting better offers. Must be moving up in the world!

Speaking of blacklisting, I burned AMEX also a long time ago. Just for grins a tried for a pre-approval on the web and was of course declined. Since then I have gotten a call from them concerning an "important personal matter". Blacklist with a vendetta, eh? Way past the SOL on this one so I think I will let sleeping dogs lie!

Re: Discover Financial Services/Blacklisting

Anonymous — Sat, 07 Jun 2008 17:41:13 GMT

Whats everyone's beef with citifinancial? lol

I understand they aren't the best lender, but they gave me credit to buy a motorcycle when nobody else would. Granted, my rate was through the roof. And their customer service was always top notch. They seemed to be willing to work with me. I never called in, I would go to the building, that probably makes a huge difference.

I just kept it for a year while building credit and then refi'd down to 8%, but everything went smoothly. There were no fees for paying it off early. Although I do believe I got screwed over by paying all the interest and THEN refinancing! lol

Re: Discover Financial Services/Blacklisting

Anonymous — Sat, 07 Jun 2008 17:44:18 GMT

Just curious, what was your credit score?

Re: Discover Financial Services/Blacklisting

creditreformer — Sat, 07 Jun 2008 18:22:58 GMT

Idk if discover blacklists, but here is my amex experience-

Burned them 10+ yrs ago w/the green cc. SOL is long since past and the CO has been off my reports for 3-4 yrs now. Charged off, not paid (unable to @ the time). Periodically, they send me offers for their oasis program (it used to have another name)- of course they want me to give me a cc w/a CL *just* above the old charged off amount and of course they want me to pay the CO in full and of course the interest starts kicking in @ day 1.

Fast forward to about a yr ago. Bam, preapproval in the mail from amex for the green cc. NO mention of Oasis/old baddies, so I thought ‘hmmm, it HAS been 10+ yrs, maybe Amex DOES forgive?’ So I apply and bam, DENIED. Only reason stated for denial- ‘you burned us in the past’ 10+ yrs is a mighty long time ago, but I guess Amex doesn’t forgive or even forget. However, I DID read on another board that someone DID get approved for an amex (w/o having to pay the CO), but their CO was 15+ yrs ago. So another 4-5+ years and amex *may* love me?

As for discover, I burned them about 10+ yrs ago also. Haven’t gotten up the nerve to app and needless to say, no preapprovals LOL

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 18:28:53 GMT

Citi Financial are bottom feeders. Don't get me wrong - if you need them they may be useful. But they are a finance company peddling installment loans at high rates. Very surprised to see DFS in this business. Who do they think the are, Citi?

All FICO's around 690. Trying to get over 700 and should be as soon as my new CC accounts settle out in a few months. Also in another month my auto loan will pass the one year mark. I have one 120 day late and a 90 day late on another account that are over 3.5 years old. I also have a balance on an account which was closed by me that I am paying down. After my new accounts and BT fully post my UTIL should be < 20%.

Re: Discover Financial Services/Blacklisting

Anonymous — Sat, 07 Jun 2008 18:35:49 GMT

jmbfl wrote:
Citi Financial are bottom feeders. Don't get me wrong - if you need them they may be useful. But they are a finance company peddling installment loans at high rates. Very surprised to see DFS in this business. Who do they think the are, Citi?

OK. So they are just hated for the same reasons as sub-prime CCCs. But they are still a valuable tool for those building/rebuilding credit.

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 18:36:33 GMT

Don't get your hopes up. AMEX blacklists forever! (Since my earlier post it has come to my attention that AMEX may have called prior to that web site visit.)

To get this thread back on track I am seeking imformation pertaining to Discover Financial Services/Discover CC's.

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 18:41:42 GMT

jmbfl wrote:
Citi Financial are bottom feeders. Don't get me wrong - if you need them they may be useful. But they are a finance company peddling installment loans at high rates. Very surprised to see DFS in this business. Who do they think the are, Citi?

OK. So they are just hated for the same reasons as sub-prime CCCs. But they are still a valuable tool for those building/rebuilding credit.

Try a local CU. I did with an unpaid judgement showing on my CR and got an 8% auto loan. I repeat again for those who will listen: Citi Financial are bottom feeders!!

Re: Discover Financial Services/Blacklisting

Anonymous — Sat, 07 Jun 2008 19:29:16 GMT

in my earlier post: I have refi'd with CU at 8%. Now sorry for going off-topic but youre welcome for the free bumps

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 19:37:48 GMT

I did not re-fi at 8%. That was an original loan from the credit union with an unpaid judgement showing on all CR's. The CU was kind - Citi Financial are brutal bottom feeders. Is there anything at all unclear about that?

Now can I have my thread back?

Re: Discover Financial Services/Blacklisting

Anonymous — Sat, 07 Jun 2008 19:42:41 GMT

I was responding to your telling me to try a local CU. Clearly there is some confusion. You may have your thread back.

Re: Discover Financial Services/Blacklisting

haulingthescoreup — Sat, 07 Jun 2008 19:50:17 GMT

@jmbfl wrote:

....Speaking of blacklisting, I burned AMEX also a long time ago. Just for grins a tried for a pre-approval on the web and was of course declined. Since then I have gotten a call from them concerning an "important personal matter". Blacklist with a vendetta, eh? Way past the SOL on this one so I think I will let sleeping dogs lie!

This might be an offer for their Oasis program. If you're ever interested in getting back with them, and picking up clean history from the time that you opened the original card, this is the way to do it. Not everyone is interested, of course.

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 19:56:01 GMT

They could contact me in writing. I'm not one much for talking to collectors over the phone. At least it would be inside collectors and not a CA. The next time I speak to a CA on the telephone will be the first!

HTSU-

You just move a thread while I was answering it. Grrrr! No time to repost now.

Re: Discover Financial Services/Blacklisting

jmbfl — Sat, 07 Jun 2008 19:59:08 GMT

Damnit thrasher! Many people read these posts. I would not want anyone considering Citi Financial as a first resource for financing anything when there are far better alternative available. Go to a CU first. Only use a finance company in true desperation!

Re: Discover Financial Services/Blacklisting

haulingthescoreup — Sat, 07 Jun 2008 20:10:21 GMT

@jmbfl wrote:

They could contact me in writing. I'm not one much for talking to collectors over the phone. At least it would be inside collectors and not a CA. The next time I speak to a CA on the telephone will be the first!

HTSU-

You just move a thread while I was answering it. Grrrr! No time to repost now.

Sorry! Used to happen to me too. Still does, in fact.

But when people post on the wrong forum, they don't get the looks that their post deserves. Glad you were answering it, though. I assume it's one of the bajillion that belong on Rebuilding Your Credit.

Re: Discover Financial Services/Blacklisting

haulingthescoreup — Sat, 07 Jun 2008 20:18:22 GMT

@jmbfl wrote:

Damnit thrasher! Many people read these posts. I would not want anyone considering Citi Financial as a first resource for financing anything when there are far better alternative available. Go to a CU first. Only use a finance company in true desperation!

Okay, if we could dial the temperature on this thread down a bit, other members would appreciate it.

The problem with Citifinancial, and many other lenders with "finance" or "financial" in their names, is that their loans get coded as consumer finance loans, or CFL's. While these aren't the worst thing that you can get on your report, they are less helpful than a loan from a bank or CU. Some people even get a message of "you have too many CFL's on your records." The ding appears to come from the fact that they're relatively easy to get, so they make you look desperate. But notice that this doesn't apply for Aspire and the other vulture CCC's! Anyway, avoid these when possible.

I took a loan offer than came in the mail from Wells Fargo Financial, because I didn't know any better. It came in handy because DD#1 had just had an unexpected tuition jump, and I was carrying it on my CC. (This was back when I had one CC!) I thought that their CS was great, it came in very handy, and I paid it off in 10 months. I haven't gotten a negative message on it, probably because I only have one, and my negative comments are full of snotty messages about my old lates.

Anyway, that's the story on CFL's, which we probably ought to let go for now. Or at least start a new thread over in General Credit Issues, if someone just can't help it.

Re: Discover Financial Services/Blacklisting

jmbfl — Sun, 08 Jun 2008 05:23:19 GMT

HTSU - I love you. I just have no patience with perisitent threadjackers. If I don't get on-topic responses by tomorrow AM I will rephrase and repost my question. It was an important one. At least to me - and after all it was my thread,,,

Re: Discover Financial Services/Blacklisting

Anonymous — Sun, 08 Jun 2008 06:03:27 GMT

I was never trying to thread jack, I only asked one question related to your comments about citifinancial. I never recommended them as a good lender, just wanted clarity and hauling provided that. I probably could have started a new thread, but it wasn't that important of a question to me. Anyway my last few posts were just trying to clarify that I had refi'd with a CU, not saying anything about you refinancing. Clearly I have angered you somehow.

Anyway, back to trying to get your topic rolling back on track: I don't believe that your offers from "Discover Financial Services" are on the same order as places like CitiFinancial. Discover Financial Services is just the company name. For instance on my credit reports, my discover card shows up as "Discover Financial Svcs." I have seen things like home equity lines of credit offered from discover. Also, 7.99% is not a rate I would expect anybody to get from a place similar to citifinancial.

If your post was in regards to whether or not you should accept it, I would have to say just read the T&C. If you were just wondering if Discover Fin. Services is to Discover Card as CitiFinancial is to Citibank, I would say IMO, no.

It is not weird, in my opinion, to see things like installment loans from Discover, considering they do have a bank that offers savings accounts, checking accounts, CDs, money market accounts, etc.

Hope that is more helpful than previous posts.....

Message Edited by thrasher865 on 06-07-2008 11:03 PM

Re: Discover Financial Services/Blacklisting

creditreformer — Sun, 08 Jun 2008 06:14:02 GMT

I am not sure anyone can give you a definitive answer about discover (either the cc or the other product- or any cc for that matter). I know for some ccs (let’s say amex and discover for hypothetical purposes), I have read on various cc boards that the cos. blacklist for forever…for ALL products regardless of whether the product is offered by say XYZ Financial Services or XYZ (co. of the same name w/o the 'financial' part in the title). I have also read that some people have gotten in w/these cos. again after X period of time (ranges from 5-15 yrs) w/o having to pay off their old debts. I have also read that people have gotten in for say 1 product (say loan), but NOT another (say cc) and the reason they were denied for a given product was BECAUSE they burned the co. on that product. I have also read that some people have gotten preapprovals from certain cos. (again, let’s say amex and discover for hypothetical purposes), applied, and then gotten rejected BECAUSE of their old chargeoffs, regardless of whether it was on/off their report, in/out of SOL, etc. I've also read a ton of other variations re these issues. In other words, as people so often say, YMMV and I just don’t think it’s possible for anyone outside of the co. to give you a definite answer re something like blacklisting.

Given the conflicting responses, I’ve found the best thing to do (imo only) is to search the various boards (and do a google search for more results), try to see if anyone’s had experience w/a given product and/or if there’s a ‘pattern’, and if in doubt, call the co. BEFORE applying (sometimes they’ll give you a definite answer; other times they’ll say ‘idk’), or, if you’re feeling bold, hit the app button and see what happens. I did that w/amex (which is why I mentioned it as perhaps discover is the same or @ least similar…e.g., sends you a preapproval but in reality, you’re STILL on their blacklist) and woops, they denied me BECAUSE of a past CO. from what I’ve read on various boards, discover (ALL parts of discover) is 1 of the most unforgiving cos. out there and in fact, they’re usually mentioned in the same breath as amex when it comes to the ‘blacklist’ issue. frankly, from what i've read, i don't feel overly optimistic about my chances of getting my foot in the door w/discover (CO cc from 10+ yrs ago) ever again, but perhaps things have changed and if they've sent you pre-approved offers, perhaps that means they are NOT doing some type of 'mind game'/ waitign to deny you b/c you're on their magic blacklist (if they even have 1).

The only thing people can definitively say is whether they have had experience w/discover financial/the same offer you got. In my case, no.

W/all of that said, GL if you decide to take them up on their offer and please post the results if you app so others can try to see if there’s some type of ‘pattern’ w/Discover blacklisting.

Message Edited by creditreformer on 06-07-2008 11:14 PM

Re: Discover Financial Services/Blacklisting

BBYGRL — Sun, 08 Jun 2008 19:10:41 GMT

@creditreformer wrote:
Idk if discover blacklists, but here is my amex experience-
Burned them 10+ yrs ago w/the green cc. SOL is long since past and the CO has been off my reports for 3-4 yrs now. @Anonymous off, not paid (unable to @ the time). @Periodically, they send me offers for their oasis program (it used to have another name)- of course they want me to give me a cc w/a CL *just* above the old charged off amount and of course they want me to pay the CO in full and of course the interest starts kicking in @ day 1.
Fast forward to about a yr ago. Bam, preapproval in the mail from amex for the green cc. NO mention of Oasis/old baddies, so I thought ‘hmmm, it HAS been 10+ yrs, maybe Amex DOES forgive?’ So I apply and bam, DENIED. Only reason stated for denial- ‘you burned us in the past’ 10+ yrs is a mighty long time ago, but I guess Amex doesn’t forgive or even forget. However, I DID read on another board that someone DID get approved for an amex (w/o having to pay the CO), but their CO was 15+ yrs ago. So another 4-5+ years and amex *may* love me?
As for discover, I burned them about 10+ yrs ago also. Haven’t gotten up the nerve to app and needless to say, no preapprovals LOL

My experience with Amex almost mirrors yours. I burned them after they consolidated all of my accounts and then demanded a payment in full. After numerous calls and threats (yes threats - didn't know I could sue then)from a CA, the calls finally stopped. It's been 10 years. SOL kicked in last November. I was told I was blacklisted by a CSR. He was a nasty man. He made it seem like I stole money from his grandma. I wanted to PIF at that time but decided to wait until they offer me the Oasis. I'm still waiting. I'm not holding my breath though. As for Discover, I'm not sure about a blacklist. They closed my account about 3 years ago after I missed a few payments. It didn't go to collections because I was able to pay on time until I was fortunate enough to PIF June '07. I was approved for 8K More Card in November '08. I love this card. I plan on taking GREAT care of it this time.