I've had the Discover secured card with a 200 limit since March 2016 with no signs of graduation. I normally PIF each month but have overall utilization of 16%. Fico's are TU 637, EX 614 and EQ 621. I have 2 collection accounts still listed on EX from 2013 and 3 charge-offs from 2014. Charge-offs are on TU and EQ but the collections are not. When I initially got the secured card I had 5 additional collections which have since been PIF and removed from all credit reports. I understand why I only qualified for the secured card in 2016 and somewhat understand why they haven't unsecured it. I have had 100% on-time payments on everything since 2015. My question is - everytime I try the Discover pre-qualifier site, the response I get is there are no pre-qualified offers and the singular reason given is "Charge-off" with no further elaboration or additional reasons. At one time I was a co-signer on a student Discover for my daughter which was charged off in 1999 and is no longer listed on either of our CR's. So my question is are they referring to the current charge-offs listed on my reports and if so, does that mean they won't unsecure my current card until those charge-offs are off my reports as well as deny any new applications? Or, could they be referring to the 1999 co-signer charge-off? I'm beginning to suspect the latter is the case but just wanted some outside opinions. TIA
@FinStar wrote:
Have you contacted them?
We could sit here for a while speculating, since it could be either or both. However, it would behoove you to contact them directly to get more clarity on the reasoning.
No, I haven't contacted them regarding the pre-qualifier reasonings. I have, however, talked to them periodically about unsecuring my secured card but always get the standard replies. I guess my next step will be to contact them to ask specifically what they are referencing. Thanks for your thoughts.
I agree with calling them and asking more information.
If I had to speculate though. As a co-signer you were legally obligated on the debt your daughter occurred. Since I assume this was never paid. Discover has blacklisted you for having a past charged off account.
Just because the account is not listed on your credit report any longer does not mean that discover doesn’t have a record of it and won’t still hold it against you.
I’m not familiar with discover and blacklisting. Maybe another member has more information of how long it lasts, anything you might do to get off it.
If I had to speculate though. As a co-signer you were legally obligated on the debt your daughter occurred. Since I assume this was never paid. Discover has blacklisted you for having a past charged off account.
Just because the account is not listed on your credit report any longer does not mean that discover doesn’t have a record of it and won’t still hold it against you.
I’m not familiar with discover and blacklisting. Maybe another member has more information of how long it lasts, anything you might do to get off it.
@Shadowfactor wrote:
I agree with calling them and asking more information.
If I had to speculate though. As a co-signer you were legally obligated on the debt your daughter occurred. Since I assume this was never paid. Discover has blacklisted you for having a past charged off account.
Just because the account is not listed on your credit report any longer does not mean that discover doesn’t have a record of it and won’t still hold it against you.
I’m not familiar with discover and blacklisting. Maybe another member has more information of how long it lasts, anything you might do to get off it.
I did take FinStar's advice and gave them a call. The representative was able to tell me that my prior Discover accounts were in good standing that the "charge-off" statement was in reference to the accounts still listed on my current reports as charge-off and/or collection accounts. So I guess I have some more housekeeping to do before Discover likes my profile.
*edit* Interesting data point is that they soft pulled my Experian report on the pre-qualify site whereas in the past it was always EQ that they pulled.
Once your chargeoffs drops Discover will most likely love you so keep the faith