Discover CLI DECLINED due to .... UNREAL REASON

[Anonymous]

Ok so I have two Discover cards the IT and Chrome. I applied for a CLI on both, both instant DECLINE

I waited for the letters and I was floored by the reason.

First let me say, I do have now 61 credit cards, total untilization is 2%, no single card has more then 21% utilization. I also have a bunch of inquries but that was not the reason for denial. I cant remember the last time I was turned down for a new card or a CLI. 

My FICOs are between 767 and 786. I have never been late on anything my entire life. I just took out a new car loan for $18K and my house is paid off. No mortgage which I know hurts my scores but not that much.

Reason for decline;

Open unsecured loan with Lending Club, Discover will not give a CLI or a new card if you have an unsecured loan. **bleep**. Isn't a credit card an unsecured loan too?????

I called customer service and was told this is how it is, I would need to pay off my loan to Lending Club before I apply again or it will end in denial. I only have 8 payments left on that loan out of 36 originally. My income is in the 7 figure range and being a DR MD it is not going to go any lower as I am on contract with my employers.

Any thoughts on how to get around this?

Thanks for your time

Mark

[WavysMommy]

Well, depending on how Lending Club is reported on your credit, if it's also listed as a CFA that could be the reason for the decline. But they also don't have to give you the exact reason, just *A* reason and the loan was part of the reason for denial.

You can always try a reconsideration(if an option), but that doesn't necessarily guarantee a CLI. I would just continue paying the loan off and then reapply after it's reported as paid off.

[Anonymous]

Just one more example of what many of us have learned over time - flashy income and flashy credit scores don't always mean we are entitled to all of the credit we want. 

Discover can be a bit weird. 

[Anonymous]

I pulled this off of Experian today this is my Lending Club loan

Account Info

Hover over labels for more details

Account number154XXX

Account statusOpen

Date openedJul 29, 2019

Account typeUnsecured Loan

Balance on May 31, 2021Loan Amount

$11,073  $39,000

Payment Info

StatusCurrent

Status dateMay 2021

Past due amount-

Original loan amount$39,000

Monthly payment$1,194

Late payments

-

JanFebMarAprMayJunJulAugSepOctNovDec

2021-------

2020

2019------

On Time

-Data Unavailable

Additional info

ResponsibilityIndividual

Terms36 Months

Company sold-

Original creditor-

Comments

-

Your statements

-

Contact

71 STEVENSON ST STE 300

SAN FRANCISCO, CA 94105

(408) 524-1540

Is everything correct?

If inaccurate information appears on your report, you can contact the lender directly to have it corrected, or let us know online or by mail.

Dispute this account

[AverageJoesCredit]

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@Anonymous wrote:

Ok so I have two Discover cards the IT and Chrome. I applied for a CLI on both, both instant DECLINE

I waited for the letters and I was floored by the reason.

First let me say, I do have now 61 credit cards, total untilization is 2%, no single card has more then 21% utilization. I also have a bunch of inquries but that was not the reason for denial. I cant remember the last time I was turned down for a new card or a CLI. 

My FICOs are between 767 and 786. I have never been late on anything my entire life. I just took out a new car loan for $18K and my house is paid off. No mortgage which I know hurts my scores but not that much.

Reason for decline;

Open unsecured loan with Lending Club, Discover will not give a CLI or a new card if you have an unsecured loan. **bleep**. Isn't a credit card an unsecured loan too?????

I called customer service and was told this is how it is, I would need to pay off my loan to Lending Club before I apply again or it will end in denial. I only have 8 payments left on that loan out of 36 originally. My income is in the 7 figure range and being a DR MD it is not going to go any lower as I am on contract with my employers.

Any thoughts on how to get around this?

Thanks for your time

Mark

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It doesnt matter if you are a Doctor or poor like me, Discover has always been  unpredictable on giving cli and even more so during the Pandemic. You could spend heavy and get nothing while someone who spends little gets a 5k increase. There is no timing a cli with Discovrr either. The best you can do,  imho, is just keep hitting the luv button every once inawhile . I think too many people take the denial letters too seriously.  Its just their way to say not at this time. 

Unlike other banks where you might plead your case on a cli denial, a Discover denial is a denial no matter what so no use in  trying to overcome it in the moment. I understand the reasons can be baffling  but Discover will never be figured out. 

[Horseshoez]

I agree with the collective here, Discover has their own way of doing things; they love some folks and don't give a shred of love to others, and no apparent logic to any of their decisions.  Many folks seem to be able to get a Discover card with all manner of "stuff" in their history; some of us, myself included, cannot get enough credit from Discover to buy the proverbial pack of gum.  I mean, last year they sent me a raft of "Pre-Approval" love letters in the mail, I finally took the bait and applied; all I got was a hard pull against my credit and a DENIED letter for my effort.  After that I tried their Pre-Approval page a few times and was denied every time.  "Okay-okay," I thought, "I get the message, "no Discover card for Horseshoez." 

[AverageJoesCredit]

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@Horseshoez wrote:

I agree with the collective here, Discover has their own way of doing things; they love some folks and don't give a shred of love to others, and no apparent logic to any of their decisions.  Many folks seem to be able to get a Discover card with all manner of "stuff" in their history; some of us, myself included, cannot get enough credit from Discover to buy the proverbial pack of gum.  I mean, last year they sent me a raft of "Pre-Approval" love letters in the mail, I finally took the bait and applied; all I got was a hard pull against my credit and a DENIED letter for my effort.  After that I tried their Pre-Approval page a few times and was denied every time.  "Okay-okay," I thought, "I get the message, "no Discover card for Horseshoez." 

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At the beginning of my Discover journey, i received like 5 or 6 mailers and i actually took like 5 or 6 hps before finally being approved i kid you not. Worse thing in the world is getting beautiful mailers and thinking wow i got this, only to becdenied. Not fun but lessons to be learned about marketing haha

[Anonymous]

After reading all this I just called Discover again to present my case. My lines are $15,000 and $9,000 which for me ar pretty low. I called and said I would like $25,000 each and since I do have a savings account with Discover with $250,000 in it I think I am a good customer and would like the increase. The guy laughed a little and said I should just move my savings account to another bank and the denial stands. Even Wells Fargo never had that bad of an attitude. WOW what can I say?

[Anonymous]

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@Anonymous wrote:

After reading all this I just called Discover again to present my case. My lines are $15,000 and $9,000 which for me ar pretty low. I called and said I would like $25,000 each and since I do have a savings account with Discover with $250,000 in it I think I am a good customer and would like the increase. The guy laughed a little and said I should just move my savings account to another bank and the denial stands. Even Wells Fargo never had that bad of an attitude. WOW what can I say?

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Right. Exactly what I said. Flashy income/money in savings/buried in the back yard, does not equal entitlement to the amount of credit you want, it equals the amount of credit the lender wants to extend to you.  As he said, move you cash somewhere else, just don't expect that lender to be overly impressed and open the wallet to what you feel you should have either. Just the way this stuff works....

[Anonymous]

I would burry it in the backyard but Robert, Robert aka Bob BarkerMuffin and Fluffy would probably dig it up and spend it all at chewy.com lol