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Seriously confused

maiden_girl
Valued Contributor

Seriously confused

I recently applied for a Discover personal loan. I was told my loan was denied due to "past or present delinquent credit obligations" and "too many recent inquires". My first thought was "I don't have any delinquent accounts" and Discover couldn't tell me anything regarding this account...the type of account...the date it was supposedly reported delinquent or anything that would help me figure out what account they were talking about. I spent the entire morning calling current and past creditors thinking maybe I had forgotten to pay something but...all creditors say "we have no late payment history on your account at any time. you have an immaculate payment history." I thought well ok that's good to hear. I also pulled all 3 CRs on myfico and it also reports 0 late payments or any account in collections. I'm seriously confused and feel lost. Is it Discover misreporting this denial or can you have an account in collections that doesn't show up on your credit file? As far as I know, I have paid all my accounts on-time and never paid a fee in my life. Discover told me to wait for a letter as it would include more details regarding this denial. Why would I wait if they are telling me I have a delinquent account? I want to figure it out immediately.

As of 2017, rebuilding...
Message 1 of 12
11 REPLIES 11
CGDefender
Regular Contributor

Re: Seriously confused

I doubt the letter from Discover will give you any useful information on which account they are claiming as delinquent. At best, their letter will probably include the name of the CB they pulled, and maybe a score with the scoring model they used.

 

Armed with your 3 credit reports, I would call immediately and ask for a Recon. Have them explain exactly what they are seeing against you, because from what I understand, they are not allowed access to information that you're not allowed to access.

 

As for their second claim, you didn’t speak to the amount of recent inquiries on your reports, so I will assume that is also false? Keeping in mind that "too many" is a subjective term.

 

Recon immediately, and get more information to match up what's on your report to what they are seeing. It unlikely, but not impossible, that they didn’t pull YOUR credit, but someone else's by mistake.

Gardening Since: 21 Jan 2017
USAA FAKO "Plus" \ FICO Score 8 (1 Apr)
Eq: 729 \ 808
Tu: 710 \ 790
Ex: 770 \ 809
FICO NextGen V2: 781 (Dec 1st 2016 - from PenFed)
Message 2 of 12
maiden_girl
Valued Contributor

Re: Seriously confused

Thanks. The too many inquires may be accurate. I did have quite a few on my Experian report when I purchased a new car last year. Maybe 13 in total but they should not still be factoring into my score. They are over a year old. I doubt the letter will be helpful anyway. I pulled my reports the minute they said that and I don't have any delinquent accounts or any late payments. Surely if i had a delinquent account, I will have received letters about it which I haven't. The Discover loan person wasn't helpeful at all.

As of 2017, rebuilding...
Message 3 of 12
maiden_girl
Valued Contributor

Re: Seriously confused

Plus when I checked my reports here...I get these on my page.

 

Bottom Line

A FICO® Score between 725 to 759 is about average. Most lenders would consider scores in this range as good, and an indication that you are a dependable borrower. Based on your score alone, you might expect the following:
  • It is very unlikely your applications for credit cards or other loans will be turned down, based on your score alone.
  • Most lenders will consider offering you very attractive and competitive rates and terms on loans.
  • Many lenders will be able to provide you with an instant approval status based on your score.

A FICO® Score between 760 to 850 is above average. Most lenders would consider scores in this range as excellent, and an indication that you are a very dependable borrower. Based on your score alone, you might expect the following:

  • It is very unlikely your application for credit cards or for a mortgage or auto loan would be turned down, based on your score alone.
  • You should be able to obtain relatively high credit limits on your credit card.
  • Most lenders will consider offering you their most attractive and most competitive rates.
  • Many lenders will also offer you special incentives and rewards targeted to their "best" customers.
As of 2017, rebuilding...
Message 4 of 12
Revelate
Moderator Emeritus

Re: Seriously confused

Inquiries from any time period can be counted against you in an underwriting decision: if it's on the report it can be utilized even if FICO doesn't make use of it.

 

As for the not allowing to make a decision based on information we can't see, AFAIK they are allowed to pull from alternate sources as well but they don't have to disclose that as it's not regulated.  There are other databases with our sins on them besides the CRA's (public records and what not) and I don't think this is nearly as well governed.  

 

It's possible there's something wonky with the data they got, I'd definitely wait for the letter, and then armed with my reports, holler at them personally to figure out what the delinquent information is, but if they want to take exception to the inquiries, nothing you can realistically do about that.

 

Unsecured personal loans are notoriously hard to get for a lot of valid reasons: Lending Club / Prosper / CU's are typically the best options.




        
Message 5 of 12
takeshi74
Senior Contributor

Re: Seriously confused


@maiden_girl wrote:

Discover told me to wait for a letter as it would include more details regarding this denial. Why would I wait if they are telling me I have a delinquent account? I want to figure it out immediately.


Because the letter will tell you the data source(s) Discover used to make their decision.  At this point there's no telling if the items were reported via one of the major 3 or another source.  Once you have the letter you'll be able to confirm and take appropriate action.

 


@maiden_girl wrote:

Plus when I checked my reports here...I get these on my page.


What are we supposed to be looking at that is relevant to this?  Keep in mind that both entries say "based on score alone".  Creditors never (or rarely) rely solely on score.  The reasons for denial that were given to you over the phone are just one example of this.

Message 6 of 12
maiden_girl
Valued Contributor

Re: Seriously confused


@takeshi74 wrote:

@maiden_girl wrote:

Plus when I checked my reports here...I get these on my page.


What are we supposed to be looking at that is relevant to this?  Keep in mind that both entries say "based on score alone".  Creditors never (or rarely) rely solely on score.  The reasons for denial that were given to you over the phone are just one example of this.


 

I know creditors don't rely on the score alone. But even if they didn't...I have excellent payment history and decent mix of credit and lines of credit. The main reason they reported the denial was a late account which is not true. Discover simply classified it as "late" because no data reported for those months. They told me to have the account "removed" from my credit report and reapply. The account is valid but it isn't late. Creditors don't report data sometimes...it reports as "unknown" on one report and "no data" on another.

 


@Revelate wrote:

Inquiries from any time period can be counted against you in an underwriting decision: if it's on the report it can be utilized even if FICO doesn't make use of it.

 

As for the not allowing to make a decision based on information we can't see, AFAIK they are allowed to pull from alternate sources as well but they don't have to disclose that as it's not regulated.  There are other databases with our sins on them besides the CRA's (public records and what not) and I don't think this is nearly as well governed.  

 

It's possible there's something wonky with the data they got, I'd definitely wait for the letter, and then armed with my reports, holler at them personally to figure out what the delinquent information is, but if they want to take exception to the inquiries, nothing you can realistically do about that.

 

Unsecured personal loans are notoriously hard to get for a lot of valid reasons: Lending Club / Prosper / CU's are typically the best options.


I appreciate this information. I just find it funny that Discover denied my loan application for FALSE reasons. They basically said all my accounts were delinquent which is a 100% lie. On top of that, they sent me a FIRM offer right after they denied my application inviting me to apply. I mean...Discover just doesn't send out personal loan invites!? As for the delinquent account information, they based it off of a closed Chase account due to the simple fact that no data was reported--it was reporting "unknown" not late or anything just "unknown" for a few dates after the card was transferred. The card was closed and transferred to a new card after a store data breach. I have excellent payment history all around and never late with anyone. And ALL inquires were from December 2013 from a car loan.

As of 2017, rebuilding...
Message 7 of 12
CreditDunce
Valued Contributor

Re: Seriously confused

It sounds like in your case, it is just the CRA/Discover misinterpreting the data.  But just in case some reads this thread later, I would like to add it is possible to be denied based on burning a lender a long time ago.  Even if it has fallen off your credit report, Discover can deny a loan or CC if they have ever lost any money on you.

Message 8 of 12
Kirmie2010
Established Contributor

Re: Seriously confused

"past or present delinquent credit obligations"

 

You have never had any collections account?

 

Its worked before, maybe you can call the company you have missing months with and get them to post it.  I know most new cards I got didnt post anything until I used the card.  Others just reported as OK.  

 

That kind of sucks Smiley Sad

Message 9 of 12
maiden_girl
Valued Contributor

Re: Seriously confused


@CreditDunce wrote:

It sounds like in your case, it is just the CRA/Discover misinterpreting the data.  But just in case some reads this thread later, I would like to add it is possible to be denied based on burning a lender a long time ago.  Even if it has fallen off your credit report, Discover can deny a loan or CC if they have ever lost any money on you.


Yes this is true. However in my case, I've NEVER burned any lender. I have never made any late payment on ANY credit card or any loan...nothing...I have never had ANY collection or charge off of any kind. I pay my bills on time and do not over extend myself. Discover was being special. One of the reps told me when I first called that I was late on my Discover account as well which is an absolute lie. Surely if that information were true...Discover would have taken adverse action on my account and CLDd me instead of offering me MORE credit and balance transfer offers every day.

 

When I called back after I got all 3 reports direct from the bureaus...Discover still refused to help me. They told me to disregard the "delinquent information" after they reviewed it again. They claimed it was triggered by my Chase account reporting "unknown" or "no data" but that the denial would still stand due to multiple bank card inquires from December 2012 and December 2013. No bank cards applications what so ever. All auto loans at that time which I explained but they didn't seem to care. Then the guy told me..."This conversation is being recorded. Don't try to later dispute inquires from Discover because they will still stand and won't be removed because it's accurate information." I never denied I applied for the loan. I'm complaining about being denied for false reasons and still have an inquiry and NO LOAN.

 

I don't even want a Discover loan now. I am an excellent customer. I do most of all my banking with them, credit card and checking account, but when I request a loan, they want to be evil and lie. Not even manually review my application and let a computer denial stand. I won't use any of their products anymore and will let my Discover card catch dust.

As of 2017, rebuilding...
Message 10 of 12
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