SHOCKING: Discover DECLINED 778 EX Score w/Pre-Approval

[FinStar]

In the world of credit, nothing is really short of shocking, honestly. Scores are one element, and "flawless" is really defined by a lender's algorithm, even though most see it as subjective. Different lens, of course.

While the outcome may seem disappointing, emotion, comparing and rationalization is self-defeating to be honest. The letter may shed some light on the primary reason(s) along with the score they used plus other (correlated) reasons tied to a benchmark of why your application didn't qualify at this point in time.

We don't have the privilege of knowing what's on your CRs nor what Discover's algorithms or risk models assessed during the UW decision.

On the upside, besides the lenders you already have, others are also within reach given your profile. Discover is just another fish (of the many) in this vast ocean of possibilities.

[FireMedic1]

Sorry OP. Makes no sense at all. No one knows the complete protocol that makes up all the decisions with Discover. Whoever can solve it would make Bill Gates look like chump change.

[CreditCuriosity]

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@kilroy8 wrote:

Real reason = "We have no chance to make a profit from you, as you don't carry balances."

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Bingo.. 

[Anonymous]

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@FinStar wrote:
In the world of credit, nothing is really short of shocking, honestly. Scores are one element, and "flawless" is really defined by a lender's algorithm, even though most see it as subjective. Different lens, of course.

While the outcome may seem disappointing, emotion, comparing and rationalization is self-defeating to be honest. The letter may shed some light on the primary reason(s) along with the score they used plus other (correlated) reasons tied to a benchmark of why your application didn't qualify at this point in time.

We don't have the privilege of knowing what's on your CRs nor what Discover's algorithms or risk models assessed during the UW decision.

On the upside, besides the lenders you already have, others are also within reach given your profile. Discover is just another fish (of the many) in this vast ocean of possibilities.

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I am not debating that. Each algorithm is different and I am aware each lender can deny for any reason contained in your report, as bogus as it may seem.

I am debating the utilization reason listed for the denial. The only two that the CSR said for the denial were: high balances and too many inquiries...nothing else. She also said my FICO 8 was used and it was 778, confirming everything I know.

The 5 inquiries I can understand but come on...no one on this forum could ever claim 2% is considered high utilization. I am disappointed this false reason was listed. My friend with a much worse and equally young profile, laden with inquiries and 50% UTI was approved for a Disco.

[CreditCuriosity]

Its a pretty well known fact discover likes tainted files.. Whether BK's, little to no hisory, etc.. They don't like to have to compete with other lenders as they think they wont get swipes..  They are backwards on their business model IMO as they prefer someone that has a recent BK and give them say 10k and someone near 800 and not approve them.  The are a strange beast for sure, but obviously their business model works for some reason and I personally don't consider Discvoer a "prime" lender although you can get decent apr's, BT's and CL's with them.  Prime lender is Citi or Simmon's, not Discover they are a starter/rebuilder card for the most part although people do have it with good profiles as well, but their bread and butter comes from rebuilders or people new to credit with little avaiable credit that carry balances or do BT's.

They just got to give a reason and one of them is inquiries as you mentioned where-as I know people that have well over 100 inquries and have been approved for a discover card with a good limit.  Each profile is different and Discover you feel outside their approval criteria for whatever reason probably one that I mentioned above

[Anonymous]

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@CreditCuriosity wrote:

Its a pretty well known fact discover likes tainted files.. Whether BK's, little to no hisory, etc.. They don't like to have to compete with other lenders as they think they wont get swipes..  They are backwards on their business model IMO as they prefer someone that has a recent BK and give them say 10k and someone near 800 and not approve them.  The are a strange beast for sure, but obviously their business model works for some reason and I personally don't consider Discvoer a "prime" lender although you can get decent apr's, BT's and CL's with them.  Prime lender is Citi or Simmon's, not Discover they are a starter/rebuilder card for the most part although people do have it with good profiles as well, but their bread and butter comes from rebuilders or people new to credit with little avaiable credit that carry balances or do BT's.

They just got to give a reason and one of them is inquiries as you mentioned where-as I know people that have well over 100 inquries and have been approved for a discover card with a good limit.  Each profile is different and Discover you feel outside their approval criteria for whatever reason probably one that I mentioned above

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And for those of us who try so hard to keep a great file and stay financially healthy, it is incredibly frustrating. I didn't know that before about Disco, which is crazy to me, but I understand how they make money from it (and also assume a ton of risk).

[Anonymous]

Sent an email to the EO and recieved one back that a team memeber will be assisting my case. Who knows if this will go anywhere, but I have nothing to lose at this point. Will keep you guys posted.

[Anonymous]

Different banks have different philosophies. Discover and Capital One make their money off people who carry large balances. The reasons listed for denials tend to not be the real reasons. I don't have any Discover cards as they don't serve any benefit to me.

[Anonymous]

Obviously, you need to get your UTI down to 1% next month and try again.

[ThisMightWork41c3]

Try US Bank, If its 5% cash back you are looking for. Their Cash + card will let you chose your own  5% category each quarter. Pulls are through TU (so, Ive experienced).