Beware of Discover pre-approval page !

[patoot10]

Hello,

Discover updated their prequalification page back in October (I think). Previously you would go there type in anything and it shows you the discover card. However, after the update you basically fill in a full application that "Doesn't affect your score" and it comes up with a SOLID offer or no offer but you do get your EQ FICO 8 score in case there is no offer.

I recently opened a discover card so am not pre-approved because you need to wait 1 year before openning a new discover account however I use this page once a month to check my EQ credit score for free (because I know am not gonna get an offer).

I recently ordered my SageStream report. For those who haven't heard of this credit agency (do some research specially if you are interested in US Bank). Basically it had a bunch of hard inquiries from discover. I checked the dates of those hard inquiries and all of them are dates that I did the prequalification thing. However not every time I did the prequalification they hard pulled SageStream. Discover shouldn't hard pull any thing unless they have consent which they didn't and what's interesting is that not all the prequalification attempts have been reported to SageStream.

I called Discover customer service to ask about that and none of 4 reps had any idea about what am talking about (Classic!)

So beware of this prequalification page and use it with caution.

[trusty]

You could just freeze Sagestream; but, then I wonder if that Discover Preapproval webpage would still work? Although, if it's providing an Equifax Fico, than technically Sagestream shouldn't have anything to do with it. That's really weird, and it seems redundant to pull an underground credit bureau like Sagestream. Who even looks at Sagestream, anyway?

[patoot10]

Someone in myfico got denied a comenity card and denial letter stated that the decision was based on SageStream credit report

Also US Bank is known for denying people based on their SageStream and ARS credit reports.

If you freeze them some lenders won't approve you until they are able to pull them even though they already hard pulled one of the three major reports.

Its odd and annoying.

[Anonymous]

I have had SageStream frozen since the EQ breach last fall. Discover prequal works for me.

[arkane]

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@trusty wrote:

You could just freeze Sagestream; but, then I wonder if that Discover Preapproval webpage would still work? Although, if it's providing an Equifax Fico, than technically Sagestream shouldn't have anything to do with it. That's really weird, and it seems redundant to pull an underground credit bureau like Sagestream. Who even looks at Sagestream, anyway?

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US Bank

I take a dim view of lenders who are that skittish/nosy. 

[Anonymous]

That actually stirred my curiosity, so I think I'll be writing to Sagestream to request a copy of my most recent available report.

[Anonymous]

What's the exact wording on the Discover prequal page?  Does it say it won't hurt your credit score or does it say it won't affect your credit reports?

This is key, because SageStream doesn't typically provid scores to lenders, although they do offer their Credit Optics score (or did a number of years ago) but I have exactly zero data points on anyone being quoted a Credit Optics score after adverse action/denial.  I have seen maybe 3 or 4 denials regarding SageStream Credit Optics score on Credit Karma's forums but that place is filled with folks who are not trustworthy.

[pizza1]

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@trusty wrote:

You could just freeze Sagestream; but, then I wonder if that Discover Preapproval webpage would still work? Although, if it's providing an Equifax Fico, than technically Sagestream shouldn't have anything to do with it. That's really weird, and it seems redundant to pull an underground credit bureau like Sagestream. Who even looks at Sagestream, anyway?

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US Bank

[Anonymous]

Sagestream was also used by Cabelas and Comenity (as mentioned).  Some data points show Ally may have used SageStream in the past. Bank of America referenced SageStream in some denials in 2016.  

SageStream monitors more than credit -- they track bill payment timeliness with cell phones and internet bills, etc.

Note that SageStream is a subsidiary of the scammy company "LifeLock" who used their customer's subscription data (that customers paid for!) to create a new credit bureau.  LifeLock has been fined by the CPFB in the past, I believe for $100 million or more, in promoting their scammish product that seems to have been used solely to create this newer credit reporting bureau.

[Anonymous]

I've got a recent story from myself similar to your circumstance, although not Discover.

I was seeing CreditKarma's loan prequalification that says "doesn't affect your score" so I gave it a try. Apparently no hard inquiries added to EQ/TU/EX, but the next week or so I ordered a copy of my LexisNexis full file disclosure, and there was a hard inquiry due to the loan prequalification check (matching date, matching company, etc).

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EDIT:

Meanwhile, I just checked Discover's preapproval tool and it gives me Discover it Miles and the 5% rotating Discover it, although I already have the latter with them. The APR is 14 mo. intro 0 and then solid 19.24% for both. I have my SageStream frozen for almost 3 years, although originally the information reported to them (address, etc) was by Discover. I am thinking of getting another SageStream disclosure due to an adverse action notice from the loan prequal mentioned above (where the letter lists SageStream as one of the bureaus that impacted their decision) but if I'm requesting the report I'll check if Discover adds new inquiries.