Discover denial

[Anonymous]

My son applied for Discover IT a few weeks ago and got an instant denial. We were surprised because his Ficos are 740-770 with only a few inquiries. He carries 1-2% utilization on one card at a time. Amex ED, Citi Double Cash, USAA Signature Visa, USAA Rewards Amex and Chase Sapphire Prefered. Today the letter came in the mail. The reason for denial.....are you ready?  Because this blew my mind. Reason for Denial: No Savings Account. He has relationships with Amex, USAA, Citi and Chase. He is 20 and said he will never carry a Discover Card!

[Anonymous]

Discover is a weird bank. They really are . I'll never understand why they do or don't approve people. It's almost like it's a random.

[CatOfSpades]

Really?! I have never heard of that before! 

I had a Discover card for a few years. Other than being a nice looking card there wasn't anything they offered that I couldn't get from someone else. I definitely don't miss it. Things like this are a good reminder that I made the right decision. 

[Anonymous]

I agree with the second poster. They're very weird.
When I had a 630 credit score they said no and that I needed a joint applicant.

My score went up to 760 and I applied with them after canceling my secure card and they still said no and to get a joint applicant. They're just not satisfied.
The first reason for denial was not enough credit established. The second one was length of history not long enough. I gave up. Lol So I went to AmEx. I enjoy all their benefits much more. I think AmEx and Citi cards are among the best looking cards. 😄

[joltdude]

Thats a bit of an odd denial reason.. Uhm. id just open a savings account at a CU or something and throw in a few hundred (preferably the no fee minimum)....  feels like they are pulling that out of their backside....Read around the forum if your thinking of considering this.. Discovers a bit famous/infamous for "not doing recons" but some folks have gotten through to someone who can at least explain the real reason... 

Discover is not known for recons but you might be able to try... It really shouldnt matter but.. why doesn't he have a savings account, even if theres not much in it?

Surprised they didnt try offering a Joint ....

-J

[Berk]

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@CatOfSpades wrote:

Really?! I have never heard of that before! 

I had a Discover card for a few years. Other than being a nice looking card there wasn't anything they offered that I couldn't get from someone else. I definitely don't miss it. Things like this are a good reminder that I made the right decision. 

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Because of the massive CLIs they handed out every 3-4 weeks and because of the BT offers I constantly get, I keep my Discover.

In my sock drawer.

[AverageJoesCredit]

My last denial included this very reason , no savings account. Your son seems to have an awesome lineup. Like many im totally confused on what they want in an individual. If you have alot cards they may not want you but in my opinion theres room for everyone in a profile. You shouldnt have to rely on just one CC to be your everyday all the time. You can and nothing wrong with that but i think a little diversity is good.
Ideally i would like to have a Discover and an Amex to complete my credit card portfolio. Would be nice to have all the majors. For me Amex is a pipe dream, burned them in Bk7 so gotta live with that consequence. Discover ive never had but lost 4 HPs trying to establish a relationship with to no avail. So with the 2 i would like , a no go for me, ill just move on and establish strong relationships with the creditors who do value my business.

[Anonymous]

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@Anonymous wrote:

My son applied for Discover IT a few weeks ago and got an instant denial. We were surprised because his Ficos are 740-770 with only a few inquiries. He carries 1-2% utilization on one card at a time. Amex ED, Citi Double Cash, USAA Signature Visa, USAA Rewards Amex and Chase Sapphire Prefered. Today the letter came in the mail. The reason for denial.....are you ready?  Because this blew my mind. Reason for Denial: No Savings Account. He has relationships with Amex, USAA, Citi and Chase. He is 20 and said he will never carry a Discover Card!

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This one is certainly different.

[chingo74]

Your son's FICO score's are up there where everyone craves. A savings account shows lenders that besides income from employment or business, you have a source of income as a fall back option should emplyment cease. I would encourage your son to open one up with a local bank or credit union, and reapply for that card after 6 months. Once in bed with Discover, they are very generous when it comes to credit lines. I started with  a $400 limit, and after responsible use I'm up to 11K in under 4 years. Planning and patience are key.

[Anonymous]

That's interesting.

How would they know if he has a savings account or not?

Do they also do a ChexSystems pull then?

I don't remember seeing an option to answer yes or no on their application for a savings account.