Hello all, need help with a newly approved Discover IT Secured Card 4506-C

[MikeyMagic]

Hello

So here's the quick backstory. I have been homeless for close to 20 years until 2021. Had some addiction problems, got evicted from my apartment and maxed out credit cards, wrote bad checks(all around 1999-2000).

Anyways, getting my life together now, been in an apartment for 2 years+ and I recently checked my credit scores and there is no history on any of them. I'm not surprised since I haven't had a bank account or job or credit card in over 20 years. The bank I use is Netspend and have been with them for 8 years. I was on chexsystems for years and couldn't get a real bank account but that should have disappeared by now. Anyways...

I applied a few weeks ago for a pre-qualified Capital One Unsecured Platinum Card and I was shocked I got approved! $300 CL but it's a start and I'm trying to build credit and get a nice score. 

Someone told me to also apply for a Discover IT Card and was approved for the Secured Card. I selected $500 for Discover to take the money out of my Netspend account and that should hopefully be done in the next few days.

Here's my concern. When I applied I put around $82,000 as my income and here's why. I won a decent amount of money in a casino in 2021 and still have some left. My parents have helped me, I also play poker and win a decent amount in my local casino. So I roughly estimated that's what I take in a year now. The thing is I don't have a "legit" job and haven't paid taxes in over 20 years.

I saw this whole 4506-C thing online and did a lot of research on it and now I am worried they are going to soon require it for me. I read a lot of threads on here about it and the consensus seems to be Discover claims it's for ID verification but very few believe that. I actually called Discover and got to that department and spoke to a woman there. I asked general questions and she claims it's random who gets selected for this(I doubt that, seems like everyone is now) and she also claimed its for ID verification. She told me if I didn't pay taxes she would accept 3 months of bank statements uploaded + some notary.

If it is really for ID verification I will pass. However if it is really for income verification I am worried. My bank statements average about $2500-$3500 deposits per month and lots of usage. I also have a bunch of cash in my place I also use.

Do you guys think Discover will close my account? If so obviously I should request it before they do it so it doesn't really hurt my credit report. I really want this card but I am nervous they will not believe I make $82,000. I don't know what to do.

Can I get some help or feedback from you experts on here? Thanks so much.

[SouthJamaica]

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@MikeyMagic wrote:

Hello

So here's the quick backstory. I have been homeless for close to 20 years until 2021. Had some addiction problems, got evicted from my apartment and maxed out credit cards, wrote bad checks(all around 1999-2000).

Anyways, getting my life together now, been in an apartment for 2 years+ and I recently checked my credit scores and there is no history on any of them. I'm not surprised since I haven't had a bank account or job or credit card in over 20 years. The bank I use is Netspend and have been with them for 8 years. I was on chexsystems for years and couldn't get a real bank account but that should have disappeared by now. Anyways...

I applied a few weeks ago for a pre-qualified Capital One Unsecured Platinum Card and I was shocked I got approved! $300 CL but it's a start and I'm trying to build credit and get a nice score. 

Someone told me to also apply for a Discover IT Card and was approved for the Secured Card. I selected $500 for Discover to take the money out of my Netspend account and that should hopefully be done in the next few days.

Here's my concern. When I applied I put around $82,000 as my income and here's why. I won a decent amount of money in a casino in 2021 and still have some left. My parents have helped me, I also play poker and win a decent amount in my local casino. So I roughly estimated that's what I take in a year now. The thing is I don't have a "legit" job and haven't paid taxes in over 20 years.

I saw this whole 4506-C thing online and did a lot of research on it and now I am worried they are going to soon require it for me. I read a lot of threads on here about it and the consensus seems to be Discover claims it's for ID verification but very few believe that. I actually called Discover and got to that department and spoke to a woman there. I asked general questions and she claims it's random who gets selected for this(I doubt that, seems like everyone is now) and she also claimed its for ID verification. She told me if I didn't pay taxes she would accept 3 months of bank statements uploaded + some notary.

If it is really for ID verification I will pass. However if it is really for income verification I am worried. My bank statements average about $2500-$3500 deposits per month and lots of usage. I also have a bunch of cash in my place I also use.

Do you guys think Discover will close my account? If so obviously I should request it before they do it so it doesn't really hurt my credit report. I really want this card but I am nervous they will not believe I make $82,000. I don't know what to do.

Can I get some help or feedback from you experts on here? Thanks so much.

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No I don't think they'll close your account.

[JoeRockhead]

1. you should never "fudge" your income on credit applications as it's technically fraud, and against federal law. 

2. any credit card company can ask to verify your income at anytime, now, or in the future and if they found you've lied on your application they most often times will close your account.

Despite what the CSR told you, the 4506-C is a tax verification form, not ID verification form. A 4506-C is used through an authorized third  party participant in the IRS Income Verification Express Service (IVES). Whereas a 4506-T is a request for tax documents directly from the IRS (and still in use).

For verifying ID, or SSN, credit card companies might request you fill out a SSA-89 to verify your identity, or SSN number.

With all that said, stop worrying about it, and just use your cards responsibly. As long as you make your payments, and more importantly, don't ever have a returned payment, you shouldn't worry about getting hit with a Financial Review. It's generally missteps like having returned payments, asking for ridiculously high credit line increases, etc... that start raising red flags and triggering reviews.  

[MikeyMagic]

I understand Joe what you are saying but it seems like this 4506-C thing is happening to people before they can activate their card and use it. And it is happening a lot with secured cards too.

So I am worried they will close my account when I send them my 3 months of bank statements. But obv nothing I can do about it regardless except when this thing is triggered and I get the email I can close my account myself. But I've read that even if Discover closes the account it won't hurt your credit score. It used to I think years ago but now it doesn't. But maybe I'm wrong about that.

My money was taken from my Netspend this morning so I expect to be asked in a few days to do the 4506-C form or if I didn't pay taxes, to send them 3 months worth of my Netspend bank statements.

[NoMoreE46]

I don't recall 4506C requests for a secured card.   Can  you provide  a recent example 

from here?

Obviously, don't use

this or your other card for cash advances whilst at the casinos.