Discover requesting 4506-T. New Card? Next steps?

Anonymous · ‎07-23-2020

Discover recently requested a 4506T. I recently made a large payment to pay down my balance when I had previously only been making minumum payments. I'm wondering if that's what triggered this. Anyway, I submitted bank statements (they said that's faster), and I'm not comfortable furnishing them with my tax information. I'm not sure what they are looking for, but from what I've read on this forum it's very likely that they will close my account. My income is fine, but I've been over the limit before - so I'm concerned about that. I have a secured card with them $300 CL. I think my score will take a hit because it's my oldest card. I am thinking that I should get another card while this one is still open? My only other card is Indigo, and I'm an AU on my wife'se NFCU card. My scores updated today EQ: 612 TU: 602 EX 612. My util is 41%, but the payment I made to discover will decrease it to 28%. I am keeping my fingers crossed that I will see another increase over the weekend when discover reports my new balance. I have 1 collection. I was hoping to get some feedback on next steps.

toomchz4u · ‎07-23-2020

So wait a minute discover is requesting tax returns on a $300 limit secured account???🙄 Thats quite ridiculous in my opinion and im sure others here will agree but i think you have to now determine how important this account is to you. I would not feel comfortable doing this as well. Perhaps you can call them to try and get some clarification??? But if you cant get them to change their minds on the phone then you will probably have to provide them or either get the account shut down unfortunately.

Anonymous · ‎07-23-2020

@toomchz4u wrote:
So wait a minute discover is requesting tax returns on a $300 limit secured account???🙄 Thats quite ridiculous in my opinion and im sure others here will agree but i think you have to now determine how important this account is to you. I would not feel comfortable doing this as well. Perhaps you can call them to try and get some clarification??? But if you cant get them to change their minds on the phone then you will probably have to provide them or either get the account shut down unfortunately.

Yes, apparantely they do this often as I've read on this forum. The account isn't important to me. My only concern is that it is my oldest account. I am thinking that I want to close the account before they do, but I am wondering if I should app for another card first? My statement is set to cut onthe 25th. If they close it mid statement period, will they wait until the next time they report (next statement end date) to CRA's that it's closed?

CreditInspired · ‎07-23-2020

@Anonymous wrote:
Discover recently requested a 4506T. I recently made a large payment to pay down my balance when I had previously only been making minumum payments. I'm wondering if that's what triggered this. Anyway, I submitted bank statements (they said that's faster), and I'm not comfortable furnishing them with my tax information. I'm not sure what they are looking for, but from what I've read on this forum it's very likely that they will close my account. My income is fine, but I've been over the limit before - so I'm concerned about that. I have a secured card with them $300 CL. I think my score will take a hit because it's my oldest card. I am thinking that I should get another card while this one is still open? My only other card is Indigo, and I'm an AU on my wife'se NFCU card. My scores updated today EQ: 612 TU: 602 EX 612. My util is 41%, but the payment I made to discover will decrease it to 28%. I am keeping my fingers crossed that I will see another increase over the weekend when discover reports my new balance. I have 1 collection. I was hoping to get some feedback on next steps.

Have you applied for your own NFCU card? If no, why not?

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K

dogmeat · ‎07-23-2020

So just to be clear, you had 41% util prior to the recent large payment you made. 300 * .41 = 123. You had about a $123 balance on your 300 limit Discover.

You will soon be down to 28% util. 300 * .28 = 84. Your new balance will be around $84. So your large payment was ($123 - $84) = $39?

Okay. While I admit that Discover does have their own set of rules that are difficult to nail down, I think a payment of that size is unlikely to have triggered any internal algorithms or red flags. But, hey, you never know.

Next steps? Do what you can to keep your only (primary owner) tradeline, supplying Discover with whatever they need, up to the point that you are comfortable doing so. If it turns out you two can't play nice together, go get a secured card somewhere else, and keep the balance under the limit.

Remedios · ‎07-23-2020

@Anonymous they are looking to see how much financial distress you were in during those times you carried a balance.

If your account doesnt show overdrafts during that period, and deposits to the account loosely match reported income, you should be fine.

I wouldn't close the card. If lender closes it, it's really not a big deal, that happens all the time. You'll hear "yeah but what about manual review"..but those doing manual reviews see closed accounts all the time. So unless one gets half of their accounts closed by lenders in a very short period of time, it's just baseless panic.

You submitted what they asked for, so wait for them to finish reviewing it.

Good luck and I hope it turns out well for you.

Anonymous · ‎07-23-2020

^^^ this.

To add also, don't sweat it bring your oldest account. Even if it is closed, it'll stay on your reports for up to ten years and will contribute to your age factors that whole time.