New insight on why I keep getting denied for personal loans or is Discover full of it?

[AzCreditGuy]

I think I checked on Crediable just to see what rates and what was available for me. 

Data points I do have a Discover personal card since 2019 with a CL of $7,500. I keep getting denied CLI because it seems I have low usage on the card. I did burn Discover back in 2008 and they let me back in with a low CL and since a year ago I was upped to $7.5k

I have zero installment loans, but did get a fixed personal loan with SOFI for $16k for 4 years, I ended up paying off the loan in 2 years. 

Current Ficos EX 799 EQ 792    TU 787

Been in the garden for over 2 years now with zero inq across all boards

Current debt is is around $970 spread across 7 cards and all with low debt balances currently at 1% of my $119,250 total CL on all cards, there is also no one single card with a ratio of 3% above its CL. 

I feel I have my credit in very good place at the moment after a rebuild in 2015 and getting 1 new card and getting 8 new cards in 2019. 

Unsure what to make of the Discover denial, also if you have an option on what you want the loan to be, I think everyone picks the highest amount so the lender can counter, I think I asked for $40k

[FinStar]

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@AzCreditGuy wrote:

I think I checked on Crediable just to see what rates and what was available for me. 

Data points I do have a Discover personal card since 2019 with a CL of $7,500. I keep getting denied CLI because it seems I have low usage on the card. I did burn Discover back in 2008 and they let me back in with a low CL and since a year ago I was upped to $7.5k

I have zero installment loans, but did get a fixed personal loan with SOFI for $16k for 4 years, I ended up paying off the loan in 2 years. 

Current Ficos EX 799 EQ 792    TU 787

Been in the garden for over 2 years now with zero inq across all boards

Current debt is is around $970 spread across 7 cards and all with low debt balances currently at 1% of my $119,250 total CL on all cards, there is also no one single card with a ratio of 3% above its CL. 

I feel I have my credit in very good place at the moment after a rebuild in 2015 and getting 1 new card and getting 8 new cards in 2019. 

Unsure what to make of the Discover denial, also if you have an option on what you want the loan to be, I think everyone picks the highest amount so the lender can counter, I think I asked for $40k

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The reasons appear aligned to a few potential factors:

The amount of the loan is too high [when leveraged to reported income and other sources] - High Risk

Highest amount on installment accounts [when leveraged with the requested loan amount versus prior installment loans experience] - Moderate Risk
Ratio of open bank revolving accounts to overall open accounts [too much open available credit] - Low to Moderate Risk

Obviously, algos determined the risk, but fundamentally those are some of the potential factors impacting the decision at a high level.

[AzCreditGuy]

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@FinStar wrote:

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@AzCreditGuy wrote:

I think I checked on Crediable just to see what rates and what was available for me. 

Data points I do have a Discover personal card since 2019 with a CL of $7,500. I keep getting denied CLI because it seems I have low usage on the card. I did burn Discover back in 2008 and they let me back in with a low CL and since a year ago I was upped to $7.5k

I have zero installment loans, but did get a fixed personal loan with SOFI for $16k for 4 years, I ended up paying off the loan in 2 years. 

Current Ficos EX 799 EQ 792    TU 787

Been in the garden for over 2 years now with zero inq across all boards

Current debt is is around $970 spread across 7 cards and all with low debt balances currently at 1% of my $119,250 total CL on all cards, there is also no one single card with a ratio of 3% above its CL. 

I feel I have my credit in very good place at the moment after a rebuild in 2015 and getting 1 new card and getting 8 new cards in 2019. 

Unsure what to make of the Discover denial, also if you have an option on what you want the loan to be, I think everyone picks the highest amount so the lender can counter, I think I asked for $40k

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The reasons appear aligned to a few potential factors:

The amount of the loan is too high [when leveraged to reported income and other sources] - High Risk My income is $105k , this is complete joke

Highest amount on installment accounts [when leveraged with the requested loan amount versus prior installment loans experience] - Got a loan, it was coded as a CFA paid it off 2 years early, again a complete joke

Ratio of open bank revolving accounts to overall open accounts [too much open available credit] - Low to Moderate Risk

Obviously, algos determined the risk, but fundamentally those are some of the potential factors impacting the decision at a high level.

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The algos are a complete joke, but thats ok I will avoid given any business to Discover or any others like this. I dont need a personal loan anymore and I will be focusing more on business loans to keep it off my personal. 

[MarkintheHV]

I do not allow myself to get caught up in the "gotta have that card with a certain CL" mentality. If an issuer and I do not align with common goals (i.e. acceptable credit lines/benefits), I move on. It just wasn't a good fit.

[SouthJamaica]

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@AzCreditGuy wrote:

I think I checked on Crediable just to see what rates and what was available for me. 

Data points I do have a Discover personal card since 2019 with a CL of $7,500. I keep getting denied CLI because it seems I have low usage on the card. I did burn Discover back in 2008 and they let me back in with a low CL and since a year ago I was upped to $7.5k

I have zero installment loans, but did get a fixed personal loan with SOFI for $16k for 4 years, I ended up paying off the loan in 2 years. 

Current Ficos EX 799 EQ 792    TU 787

Been in the garden for over 2 years now with zero inq across all boards

Current debt is is around $970 spread across 7 cards and all with low debt balances currently at 1% of my $119,250 total CL on all cards, there is also no one single card with a ratio of 3% above its CL. 

I feel I have my credit in very good place at the moment after a rebuild in 2015 and getting 1 new card and getting 8 new cards in 2019. 

Unsure what to make of the Discover denial, also if you have an option on what you want the loan to be, I think everyone picks the highest amount so the lender can counter, I think I asked for $40k

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Sounds like there was a mistake here on Discover's part.  Since you don't want the loan anymore it doesn't matter, but if you did want it, I would recon.

[AzCreditGuy]

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@SouthJamaica wrote:

Sounds like there was a mistake here on Discover's part.  Since you don't want the loan anymore it doesn't matter, but if you did want it, I would recon.

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I am more interested in a busines loan vs the personal now, since I have been in the garden for over 2 years....But this would have an insight for past loan denials from others as well. Discoverys mistake is my warning to not bother with them, as the CC has been a pain to get a CLI. I hit the CLI for US Bank and they  gave me another $5k to $25k now. 

[FinStar]

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@SouthJamaica wrote:

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Sounds like there was a mistake here on Discover's part.  Since you don't want the loan anymore it doesn't matter, but if you did want it, I would recon.

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It was a risk assessment which is why the loan wasn't approved. Not a mistake on Discover's part as far as the extension of this particular loan. Also, only Discover and its UW algorithms have a better picture as to how/why a decision was made unless you work for their lending division. There's also no reconsideration. But, it sounds like the OP already decided to move on.