Discover 4506-T request for Secured card???

[Anonymous]

He is so lucky. I never had anyone teach me about credit so it was botched before I even realized. I'm grateful I found this site bc if I kept listening to the people around me my score would be a 0 by now. Lol. Good luck on your credit journey and I will be looking forward to your updates. (Fingers crossed)

[ChargedUp]

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@Lazyduck85 wrote:

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@Anonymous wrote:

My question is does everyone get this request? I'm debating filling out an app for the citi secured card and just putting 2018 income in case they do the verification too, but I'm not sure if it's wise to do the hard pull. I already have capital one. My opensky card should be here next week but credit karma says I need 6 open accounts so I'm feeling the pressure.

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Look like we are on the same boat, I am going to apply for Citi Secured Card if Discover decides to shut me down. I got Mission Lane and Open Sky already. I got a charged off from Cap One back in 2017 and already paid in full, just waiting for them to let me back in XD. Good luck with your rebuilding! FYI I put down 5400 monthly income but my 2017-2018 annual income is around  47k. My nephew recently got an unsecured Discover card with 1k SL as a college student earning 12k-15k  a year.

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Citi has a good secured card program, as does many lenders and credit unions. I've been reluctant to recommend Cap One for secured cards as it seems they have stopped allowing their secured cards to "graduate" to unsecured. No matter what, to get your deposit back, you must close the card. I don't believe any other lenders are doing things this way.

If you want back in with Cap One, I recommend building your profile up elsewhere and then applying for the card you desire at a later time. 

[Curious_George2]

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@Anonymous wrote:

They said it's 30% more than what they made 3 years ago. They are asking for 2017 and 2018 so it won't match. I understand they need to prevent fraud but not asking for the correct return could make someone seem like they are lying when they aren't. 

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Is Discover actually receiving tax transcripts at the moment?  I don't have any Discover cards, but I did request a big CLI on an Amex card, which triggered a 4506-T for income verification. I filled out the 4506-T seven weeks ago, but IRS still hasn't sent out my transcripts. This week I discovered a page on the IRS website that says "Tax Transcripts Are Only Available Online. We’ve stopped processing transcript requests by mail until further notice." (Link) I think that's a COVID-related policy, and therefore presumably temporary. Do Amex and Discover request transcripts online or by mail?

Also, IRS announced in 2019 that they would no longer send taxpayers' transcripts to third parties such as lenders performing income verification. (Link) If that means what it says, then why are Amex and Discover continuing to request these? 

I'm so confused.

[PointsBonus]

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@Curious_George2 wrote:

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@Anonymous wrote:

They said it's 30% more than what they made 3 years ago. They are asking for 2017 and 2018 so it won't match. I understand they need to prevent fraud but not asking for the correct return could make someone seem like they are lying when they aren't. 

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Is Discover actually receiving tax transcripts at the moment?  I don't have any Discover cards, but I did request a big CLI on an Amex card, which triggered a 4506-T for income verification. I filled out the 4506-T seven weeks ago, but IRS still hasn't sent out my transcripts. This week I discovered a page on the IRS website that says "Tax Transcripts Are Only Available Online. We’ve stopped processing transcript requests by mail until further notice." (Link) I think that's a COVID-related policy, and therefore presumably temporary. Do Amex and Discover request transcripts online or by mail?

Also, IRS announced in 2019 that they would no longer send taxpayers' transcripts to third parties such as lenders performing income verification. (Link) If that means what it says, then why are Amex and Discover continuing to request these? 

I'm so confused.

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Following ^^^ interesting point 

[Anonymous]

Interesting. I have to be honest.....I'm not the person to ask. Lol. I'm new to all this and I have no clue. When I read the link I saw what you're talking about. It looks like the irs is saying use their verification tool if they want access to the data and they can't use anything else to get it. So.....how is equifax getting it? I'm going to look further into this, but I'm interested to hear from someone who actually has the answers.

[Anonymous]

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@Remedios wrote:

It's not ridiculous 

You fill out the application. 

You put income. 

Your income doesnt match what supplemental reports tell them, so they want to know who is not being truthful. 

Without going through the application process, they wouldn't know who deserves secondary review and who doesnt. 

As far as "why on a secured card", that's simple, too.

Their card eventually unsecured, typically with an increase. They have vested interest to protect their assets. 

OP stated they reported 30% than what's reported on their taxes. That's a significant difference.  

Imagine losing 30% of your income..does that sound like insignificant difference? 

Bottom line, only put on applications what you can prove from previous year (or last year you filled taxes).

Do not include income of people you dont file with, do not include what you think you'll make. Dont estimate bonuses that may or may not happen. 

Tax return or it didn't happen. 

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I wholeheartedly disagree with you. They need to remove this from the application then:

That is very misleading and causing people to app and obtain credit based of a value that they deem "acceptable" then to turn around and call it unacceptable? Child support, Spouse (does *not* say filing jointly), and DP (*obviously* not filing jointly) all will not be on those tax returns. There are plenty of people that are absolutely honest, go off what the app states is acceptable, and are *not* on this forum (and regardless if they are), that are being shut down based on this FI's own terms!

What about all that is the wrong of the consumer?

[Anonymous]

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@Remedios wrote:

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@Anonymous wrote:

I read it as their tax return from this year shows the 30% increase but discover wants the return from the 2 prior years. Who fills out an application and thinks "let me write what I made 2 years ago"? That makes no sense. It seems like a way to force people to fail the verification. I don't understand what triggers it after approval and being sent a card. They should do all this as part of the application process so people can decide for themselves and not be backed into a corner. 

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I just told you why. Its secondary review. 

And no, OP put his "current" income, which is 30% than what's on tax return.

As far as who puts what's on their tax return, everyone who is being honest. 

It's not like people dont know how much they made. 

People back themselves in the corner,  Discover is just establishing the veracity of applicant's statements.

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then they need to put in the app: may be required to prove income from 2017-2018 tax years *only include what you can prove or bust!*.

[GApeachy]

I wonder if Equifax has a database of the app's and the stated income for the one applying that has had Eq. pulled over the last 1, 2, 3 or so years?  Comparing stated income on other past apps. within a certain timeframe, looking for any huge difference and looking for any employment discrepancies as well.  ETA: plus address changes, job changes, martial status changes.

Perhaps if a large discrepancy from one app to another app is noticed that could be what sends up a red flag. Just guessing but why not?

ETA: also, if you're not on their "The Work Number" database then they ask Uncle Sam?

@Curious_George2  "IVES" 

Third parties who use these forms for income verification have other alternatives. The IRS offers an Income Verification Express Service (IVES) which has several hundred participants, who, with proper authorization, order transcripts. Lenders or higher education institutions can either contract with existing IVES participants or become IVES participants themselves. The tax transcript is an official IRS record. Taxpayers may choose to provide transcripts to requestors instead of authorizing the third party to request these transcripts from the IRS on their behalf.

[Anonymous]

That makes a lot of sense. I noticed that equifax has 1099selfemployed or something like that on my credit report. I know I didn't put it there but somehow they got it. You may be on to something about the different apps. I don't see anything about my LLC on it so I doubt it's updated from the irs. 

[GApeachy]

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@Anonymous wrote:

That makes a lot of sense. I noticed that equifax has 1099selfemployed or something like that on my credit report. I know I didn't put it there but somehow they got it. You may be on to something about the different apps. I don't see anything about my LLC on it so I doubt it's updated from the irs. 

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Have you ever filled out Cap1's Auto Navigator?  You have to choose Self Employed/1099 Employee.  Once you choose Self Employed your cr changes you from a biz owner to 1099 employee instead of Self Employed/1099 Employee.  Just one way things get screwed up.