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Denied a Discover Secured Card

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Denied a Discover Secured Card

So I got my letter on the mail today and it stated the reason I wasn't approved was because of Recently opened bank revolving trades.

I opened a self lender loan as I'm trying to build credit and have paid on time for two months now. My FICO is at 589 and I just opened a Fingehut and a Open Sky cc after I was denied by Discover.

From your experiences what are the chances of me calling Discover and having one of their customer service people reversing the approval decision made by the alogarithms?
Message 1 of 13
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Super Contributor

Re: Denied a Discover Secured Card

Sorry but Disco doesn't reconsider. You will have to apply again later. 



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 2 of 13
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New Visitor

Re: Denied a Discover Secured Card

I see. Thanks for your help. I'll wait it out and then ditch the Fingerhut account.
Message 3 of 13
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Established Member

Re: Denied a Discover Secured Card

Don't ditch the fingerhut yet. It will lower your credit age and maybe your score. More importantly, it's another trade line that shows up on your credit report, a good thing. I recently used my fingerhut account for the first time after having it for about 9 months. I've heard that they bump up your CL pretty easily, which helps your available credit which helps your score and your ratio.

Starting Score: 492
Current Score: 599
Goal Score: 670


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Message 4 of 13
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Community Leader
Super Contributor

Re: Denied a Discover Secured Card

It doesn't lower age of accounts. It will keep reporting for up to 10 years







Message 5 of 13
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Super Contributor

Re: Denied a Discover Secured Card


@kikecopr wrote:
I see. Thanks for your help. I'll wait it out and then ditch the Fingerhut account.

I had a Fingerhut account when I started my rebuild, nothing wrong with it. If you've taken a HP for it, I'd keep it for at least six months, preferably a year, to make the HP worthwhile (at least to me).  






Message 6 of 13
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Moderator

Re: Denied a Discover Secured Card

Hi and welcome to the forums

 

@kikecopr  Lender has to give you a reason for denial, but that reason may not necessarily be the whole picture. Your score is still relatively low, and if you applied while you only had one loan reporting, they might have been a little hesitant to extend you credit at this time. 

 

Another thing, if your Fingerhut account is Fresh Start, it will also report as a loan until first purchase is paid off, then they will convert it to revolving credit. 

 

Give it three to six months, then run prequal again and see what happens. 

You can use that time to address whatever negatives you have on your credit report.

 

If you need help with that, there are plenty of members who can assist you in Rebuilding Your Credit sub forum 

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

Message 7 of 13
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Established Contributor

Re: Denied a Discover Secured Card

Discover secured is a little harder to get than some secured cards, but it's worth it. It is a great secured card.

 

My history with Discover secured:

 

Applied in April, denied

Applied in May, denied

Stupidly applied again in May, approved

 

In the meantime, I had opened a Citi secured card and my first statement showed up on my credit reports. I assume that was enough for Discover to approve me.

 

Then, in December, it unsecured (though only to $1,500).

 

As someone else said, the "reason" they give may not be the entire reason. I am not even sure it's always the main reason. I think you just need a little more positive history.

 

You'll get there - have a great 2020!


FICO 8 scores are deceptively high. My profile is young with a lot of new accounts and even more inquiries from 2019. The Barclay AU card is not on TransUnion; and, Equifax has some old positive accounts from 2011 that are not on the other two. That is the reason for the variation in scores. No derogs. Over 5/24 until fall 2021.
Cards

Authorized user / Corporate / Auto loan

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 045/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.

Goals: Late 2020 - Ducks Unlimited card; scores in high 700s with inquiries aging. Long-term goal - Prime rate mortgage; able to qualify for most standard credit products.
Message 8 of 13
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New Visitor

Re: Denied a Discover Secured Card

Thanks for all the great advice guys! I'll definitely use my Fingerhut for a year or so and apply for the Discover card again after I get my score up over 650.
Message 9 of 13
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Community Leader
Senior Contributor

Re: Denied a Discover Secured Card

I'd wait at least 4 months... preferably a bit longer...  Are you even generating a FICO score yet?  either way the other thing you can do is apply for discovers free monthly fico score... which is different than the one in account... and put you on their radar... its called credit scorecard... and actually it will make your preapprovals a bit more reliable as well... since they use that sp for marketing ....

 

you need just a little bit of time thats all.. Miss disco loves thin and clean profiles....

-J

 

Message 10 of 13
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