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preapprovals changed after Discover Cash Back approval

mournglory27
Member

preapprovals changed after Discover Cash Back approval

I recently applied for a Discover Cash Back card, was approved for a SL of $7500, the same day I was approved for a Mercury Mastercard for $1500. My EX FICO 8 is 697, Credit Karma TU is 735, Equifax 717(I don't now my "true" TU or EQ scores yet)...nonetheless, since I was approved for the 2 cards(they aren't showing up on CK or Experian yet), I no longer prequalify for any AMEX card(before the approvals I was prequalified for 3), my Capital One pre-approvals have changed to ...."for Good Credit" and my Experian matches have changed as well. Why would this happen? Thanks in advance. I'm not particularly looking for a new card, was just curious, and was pleasantly surprised by my Discover approval and SL which I activated this morning. Also, the HP from Disco dropped my EX FICO to 696 from 697, the Mercury HP dropped my CK TU from 735 to 733.

Message 1 of 5
4 REPLIES 4
jcooks
Frequent Contributor

Re: preapprovals changed after Discover Cash Back approval

Very recent inquiries could have swayed the pre-approval algorithms the opposite way.

Message 2 of 5
Anonymalous
Frequent Contributor

Re: preapprovals changed after Discover Cash Back approval


@mournglory27 wrote:

I recently applied for a Discover Cash Back card, was approved for a SL of $7500, the same day I was approved for a Mercury Mastercard for $1500. My EX FICO 8 is 697, Credit Karma TU is 735, Equifax 717(I don't now my "true" TU or EQ scores yet)...nonetheless, since I was approved for the 2 cards(they aren't showing up on CK or Experian yet), I no longer prequalify for any AMEX card(before the approvals I was prequalified for 3), my Capital One pre-approvals have changed to ...."for Good Credit" and my Experian matches have changed as well. Why would this happen? Thanks in advance. I'm not particularly looking for a new card, was just curious, and was pleasantly surprised by my Discover approval and SL which I activated this morning. Also, the HP from Disco dropped my EX FICO to 696 from 697, the Mercury HP dropped my CK TU from 735 to 733.


You scores dropped when you took a hard pull for the Discover card, and they dropped again when you took a hard pull for the Mercury card. These effects are immediate (credit scores represent an instant in time), so the prequals for Cap1 and AmEx after you applied for the 2 cards are based on a lower score.

 

Hard pulls exist to warn potential lenders of credit seeking behavior. That's why each time you apply for credit, your score goes down. People with new or thin files are penalized more for this than people with mature and thick files, because people with a long and reliable track record are safer.

Message 3 of 5
mournglory27
Member

Re: preapprovals changed after Discover Cash Back approval

Is this tantamount to "drug-seeking behavior" in the medical fraternity? Oh well, my scores did not eactly crater but were affected enough to affect my prequals.  Ill just stand pat for now,  make a few purchases, perhaps by then my creditscores will have dilated a bit with my lowered UTI.                                                                                                                                                                                                                                                 

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Anonymalous
Frequent Contributor

Re: preapprovals changed after Discover Cash Back approval

That's not a bad metaphor, @mournglory27. Lenders don't like credit seeking behavior because it can be a sign of financial trouble, just as someone constantly begging for new drugs or refills can be a sign of a different kind of trouble.

 

Specifically, Discover tends to pull Experian, rarely Equifax, so that's where your score dropped. I don't know what Mercury pulls, but that's at least 1 more. Hard pulls will impact your scores for a year, gradually diminishing. And they'll remain on your credit report for a full two years, which is also important because many lenders don't like too many inquiries, regardless of your score. Your Capital One prequal saw all 3 scores, because C1 does a triple pull. AmEx most likely looked at Experian.

 

You'll also see a drop in your scores when the cards first report, usually after the first statement. That's because the average age of your accounts will drop. This is usually fairly small, and goes away naturally as your cards age and pass certain thresholds.

 

Utilization has no memory. You only really need to worry about it if 1) your utilization is crazy high, because that sets off all kinds of alarms with your lenders, and you could potentially even see CLs diminish or accounts close, or 2) you're applying for credit. Planning 60 days out is usually more than sufficient, because that allows all your accounts to report with new balances. Search for AZEO for the best method (all zero balances, except one card from a major bank under 9%).

 

Consider reading some of the links in the sticky threads about credit scoring. They have a lot of good information.

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