No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Yeah, that's about right. I didn't think that was a lot considering I don't have a mortage and my rent is under $2K/mo. I could technically pay it off in under a year; months really. I mean if they don't like that they should probably get out of the credit card business. Maybe it would make more sense for them to offer loans with proper terms. The entire point of a credit card is risk and unsecured debt. My entire debt portfolio is under $100K, which includes all other debt. Maybe lenders look at it differently. In my mind it's nothing compared to what most other people hold for debt. All of my family/friends/co-workers have hundreds of thousands of dollars in debt. They have no where near the monthly income I do.
I owe 400k+ in debt, but that includes a house with is considered a secure debt and your rent payment of 2k is figured into your DTI ratio. Thing with a house a bank can simply take it if I or others defaulted. CC debt is also usually at a considerably higher APR than say a 3-4% home loan. So yes banks do look at cc debt differently from a car loan which they can repo and a house they can foreclose on. Where-as CC debt is truly unsecured debt. It isn't out of control, but it is getting up there and if i were you i would start to widdle that down as throwing away alot of cash in interest most likely. Thanks for clarifying some stuff. ss stated let us know how it all works out as a good DP with discover for the rest of the community.
Now if this is the reason discover asked for a 4506-t I have no idea, but speculate it is at least part of this reason, but we will never know unless they choose to share that info with you
Well, kind off off-topic but I know it's unsecured debt vs secured debt. Just because something is secured doesn't make it a sure thing. You can buy a car, which is secured debt, let insurance lapse, and push it off a cliff. You can buy a house for $400K and the market can drop out and it could then be worth $200K (which happened in 2009 and left a lot of banks with "secured" debt that wasn't enough to cover the defaulted loan).
@Anonymous wrote:Well, kind off off-topic but I know it's unsecured debt vs secured debt. Just because something is secured doesn't make it a sure thing. You can buy a car, which is secured debt, let insurance lapse, and push it off a cliff. You can buy a house for $400K and the market can drop out and it could then be worth $200K (which happened in 2009 and left a lot of banks with "secured" debt that wasn't enough to cover the defaulted loan).
All fairly valid points, but most lenders for car if you lets your insurance lapse will throw insurance on you once they realize it and your car payments will go up with said lender at about 3-4x what normal insurance would cost you, part of your loan contract with lender and you don't have a choice about it your car payment just goes up. It is called forced placed insurance
Yes the housing market can crash as it did in 2008/09, but alot more things are in place to safe guard this that weren't in place back in 08/09 such are verifying income, etc). also a housing bubble certainly can happen and a 400k house could become a 250k house, but hopefully one has enough equity in house to offset a banks risk and people arent as likely to walk away from a house unless they are reallly underwater as the house will most likely recover most of its value in time then some. With rates being dropped again being fed rates the likelyhood of a housing crash is unlikely in the near future as money is cheaper to borrow and houses are going to be in higher demand as people can afford to buy vs. rent, etc. if they so choose assuming their credit and other things support it.
Yep, I know of forced placed insurance. It's all a delayed reaction. It takes 3-4 months for them to do that. That means 3-4 months of a secured debt technically being unsecured. A lot of banks actually closed down because of that 2008/09 collapse. The bank closure rate was very high. All because they treated secured debt as an absolute.
Yeah, It'll be interesting to see what happens considering there are lower incomes with higher limits with Disco. I've never heard of Disco doing this before either. I mean I have moved 3 times in the last 3 years. Maybe they don't like that? Sorry, but I won't pay a rent increase. It's easy to move. So I do. lol
It’s not the first but it’s definitely rare.
https://ficoforums.myfico.com/t5/Credit-Card-Applications/FORM-4506-T/td-p/5645421
Good luck OP, keep us all posted.
@AverageJoesCredit wrote:
Good find @Anonymous though the two posters who had this happen i wonder about their profiles. For me something about their profiles spooked Disco snd sometimes "info" is conveniently left out of convo so we'll never know for sure.
Yeah totally agreed. I guess we will see as time goes on but it's definitely not something they commonly do.