Discover CLI Request Denied

[AverageJoesCredit]

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@Anonymous wrote:

Discover turned me down for a CLI on both of my accounts.

The reason being;

An open unsecured loan with Lending Club. Discover does not issue CLI or new cards to anyone with an open unsecured loan.

This was the reason given for my denial.

My Fico's are between 767 and 786, 2% utilization, 63 open credit cards with $844,775 open for use.

thanks

Mark

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Unfortunately  a blank statement like they dont issue cli to people with unsecure loans is not true as plenty of people have been approved for one . It just happens to be the reason they gave you.  We dont want people to read that and not even try. Always try with Discover, their cli process is sp unless they need to hp in which they will advise you. 

[Anonymous]

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@Anonymous wrote:

Discover turned me down for a CLI on both of my accounts.

The reason being;

An open unsecured loan with Lending Club. Discover does not issue CLI or new cards to anyone with an open unsecured loan.

This was the reason given for my denial.

My Fico's are between 767 and 786, 2% utilization, 63 open credit cards with $844,775 open for use.

thanks

Mark

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Perhaps I'm an exception to that rule but I've gotten four $500 CLIs from Discover since the pandemic started; the last two CLIs came while having an open personal loan from a credit union.  My statement closes on the 6th of each month and I tend to ask for CLIs on that date so it would report immediately.  My last $500 CLI was on 5/6/21.  I asked again this month and it was denied.  But I've gotten a CLI with a personal loan reporting AND also withdrawing $20,000 in cash from my Discover card via a balance transfer to my checking account.

The only thing I could imagine is that they meant that they don't grant CLIs when there is an open loan from a consumer finance company; and even that sounds a bit questionable. 

[lgtwriter]

I don't see any rhyme or reason to my Discover cli. I get them about every 6 tries or so, until the last month where I got two cli 30 days apart. I got the "open unsecured loan" denial once. I never had a personal loan, but I did use Affirm and Klarna once for 90 day 0% financing. Apparently both of those companies count as finance companies. I had no idea. I paid both off and never haven't used either since. So if you heave ever used Affirm or Klarna or one of those "pay in 3 or 4 payments with no interest" those can report as unsecured loans. As with anything YMMV

[kah-pas]

So, finally gotten their letter:

- Ratio of Balance too high (it was below 5%)
- high balance history on bankcards (it was 1%)
- no mortgage/insufficient decrease in morgage balance (I have no mortgage)

BUT - they quoted TU from May 5, 2021 (? given that I applied on June 13, 2021) and the score of 656 (?) while at the day of application the score, on their own website as well, was 762.

So I guess a glitch is to blame? (several days later I've gotten my 2nd Discover with $9K SL)

[FinStar]

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@kah-pas wrote:

So, finally gotten their letter:

- Ratio of Balance too high (it was below 5%)
- high balance history on bankcards (it was 1%)
- no mortgage/insufficient decrease in morgage balance (I have no mortgage)

BUT - they quoted TU from May 5, 2021 (? given that I applied on June 13, 2021) and the score of 656 (?) while at the day of application the score, on their own website as well, was 762.

So I guess a glitch is to blame? (several days later I've gotten my 2nd Discover with $9K SL)

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Thanks for sharing the reasons behind the decision.  It appears that the 'dated' SP which was used for the CLI factored those items for not getting it, not the recent SP.

On the upside, your 2nd account with them was approved which is treated differently from an lending originations standpoint vs growing your existing account.  No rhyme or reason for how Discover does things (at least for the past few years) with regard to CLIs.

[FalconSteve]

If you already have one Discover Card, they have your credit, so they don't need another pull and they can make a decision w/o it.