Discover confusion

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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TXviking
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Discover confusion

Postby TXviking » Sat Apr 16, 2016 8:25 pm

I recently asked Discover for a lower APR, not because I really need it (I don't carry a balance), but because I like to ask every so often and try to keep my APRs reasonable.

Discover rejected my request. They did a soft pull on my credit and cited one serious delinquency, too high utilization and insufficient accounts currently paid as agreed.

The serious delinquency is true. I had a shortsale with Wells Fargo in 2010. That, however, is the only derogatory item I've ever had on my credit.

The utilization claim is odd. I have numerous cards, and my utilization ranges from 0% to 5% depending on where in the cycle the inquiry hits and whether I've done any business travel that month. But perhaps they are extra diligent given the delinquency?

However, "too few accounts currently paid as agreed" makes no sense whatsoever. Other than the Wells Fargo entry (which shows "paid for less than agreed amount; closed") all my other accounts are current. :confused:

Discover cited a TU report, so I obtained a hard copy mailed to me, not wanting to rely on CK alone. The TU report shows the one "adverse entry" for Wells Fargo as expected, but no other derogatory information. 24 other trade lines (6 open, 18 closed by consumer) all show current.

Where would Discover have gotten this information from if not the credit report they cited? And how can I get them to disclose this information? I've tried calling customer service, but CS reps do not have access to view my credit report. I'm thinking about simply writing them a letter at the return address of the rejection letter.

I'm not trying to dispute the denied APR decrease; that is what it is. I'm concerned Discover knows about some delinquent account that I don't, such as someone else using my SSN to open an account somewhere. No trace of that on my credit, but the discrepancy between the rejection letter and the credit report has me worried.


ingramjuan
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Re: Discover confusion

Postby ingramjuan » Mon Apr 18, 2016 10:51 pm

TXviking wrote:I recently asked Discover for a lower APR, not because I really need it (I don't carry a balance), but because I like to ask every so often and try to keep my APRs reasonable.


I stop asking for lower apr's around 5 years ago, got tired of the run around especially on cards that i pay in full each month. However once every 14 months i ask the card issuer are they running any APR promos that i can take advantage of? I would have to say this is better than asking for a straight lower apr and the card issuer usually approves it right away. I would take a 7 to 9 month lower apr any day.
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TXviking
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Re: Discover confusion

Postby TXviking » Tue Apr 19, 2016 12:26 am

ingramjuan wrote:
TXviking wrote:I recently asked Discover for a lower APR, not because I really need it (I don't carry a balance), but because I like to ask every so often and try to keep my APRs reasonable.


I stop asking for lower apr's around 5 years ago, got tired of the run around especially on cards that i pay in full each month. However once every 14 months i ask the card issuer are they running any APR promos that i can take advantage of? I would have to say this is better than asking for a straight lower apr and the card issuer usually approves it right away. I would take a 7 to 9 month lower apr any day.


That also makes no difference unless carrying a balance. But my bigger concern now is why the letter from Discover does not match the TransUnion credit report.

takeshi
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Re: Discover confusion

Postby takeshi » Tue Apr 19, 2016 3:20 pm

TXviking wrote:However, "too few accounts currently paid as agreed" makes no sense whatsoever. Other than the Wells Fargo entry (which shows "paid for less than agreed amount; closed") all my other accounts are current. :confused:

Depending on credit profile just 1 can be "too many". The core of your problem is that one derog IMO. Derogs do tend to have significant impact.

Discover does tend to use TU. What you see on the report is what they see.

TXviking
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Re: Discover confusion

Postby TXviking » Tue Apr 19, 2016 7:12 pm

takeshi wrote:
TXviking wrote:However, "too few accounts currently paid as agreed" makes no sense whatsoever. Other than the Wells Fargo entry (which shows "paid for less than agreed amount; closed") all my other accounts are current. :confused:

Depending on credit profile just 1 can be "too many". The core of your problem is that one derog IMO. Derogs do tend to have significant impact.

Discover does tend to use TU. What you see on the report is what they see.


The one derog is a problem, sure, but the account was settled (for the shortsale amount + $6K cash from me) in 2010. Nothing else to be done there except wait for it to drop off. But even that account is not currently delinquent; the entry is six years old.

You may be right that's what Discover is referring to. If so, it's just confusing wording. My real concern is if they are looking at info that doesn't match the TU report. I've sent them a snail-mail letter to try to get to the bottom of it.

One thing that confused me is that they declined to lower the APR but then offered me a CLI of $6500?

kdm31091
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Re: Discover confusion

Postby kdm31091 » Mon May 02, 2016 8:29 am

All you can really do is address the concerns (let things fall off, let time go by) and try again later. I'd not concern myself too much over it, since you don't plan to carry a balance anyway. The APR is basically irrelevant. It's nice to have it lowered but doesn't really matter if you aren't carrying a balance.

TXviking
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Re: Discover confusion

Postby TXviking » Mon May 02, 2016 12:58 pm

kdm31091 wrote:All you can really do is address the concerns (let things fall off, let time go by) and try again later. I'd not concern myself too much over it, since you don't plan to carry a balance anyway. The APR is basically irrelevant. It's nice to have it lowered but doesn't really matter if you aren't carrying a balance.


Indeed. The APR is not really what worries me. The concern would be if Discover somehow came across some delinquent account that I wasn't aware of, which could be an indicator of identity theft. But based on the TU report, it does not appear such an account exists. I've sent Discover a letter requesting an explanation, we'll see what they say.

MemberSince99
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Re: Discover confusion

Postby MemberSince99 » Sun May 22, 2016 10:53 am

TXviking wrote:
kdm31091 wrote:All you can really do is address the concerns (let things fall off, let time go by) and try again later. I'd not concern myself too much over it, since you don't plan to carry a balance anyway. The APR is basically irrelevant. It's nice to have it lowered but doesn't really matter if you aren't carrying a balance.


Indeed. The APR is not really what worries me. The concern would be if Discover somehow came across some delinquent account that I wasn't aware of, which could be an indicator of identity theft. But based on the TU report, it does not appear such an account exists. I've sent Discover a letter requesting an explanation, we'll see what they say.


My own best guess is what they will say is tell you to check your TU report.

TXviking
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Re: Discover confusion

Postby TXviking » Sun May 22, 2016 2:33 pm

I did check the TU report. Nothing there.

Kevin86475391
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Re: Discover confusion

Postby Kevin86475391 » Tue May 24, 2016 9:02 pm

takeshi wrote:Depending on credit profile just 1 can be "too many".


I think this is the explanation for that reason to be listed as well. If they want to deny you then "too few accounts paid as agreed" could easily be applied to 1 account not paid as agreed/not 100% of all accounts paid as agreed.

When it comes to reasons listed on rejection letters I think that the information can be extremely useful and relevant and legitimately indicate areas for improvement. However, I also think it can just as easily be bullshit they're using to justify a denial after the fact.

I think it's completely plausible that they simply wanted to reject your request, did, and then needed to find some reasons to put on the letter. "Oh look. One of these accounts wasn't paid in full for the original loan amount." Bam! "too few accounts paid as agreed."

I think it's likewise the case that 1 or 2 other inquires could be 'too many recent inquires' or 15% utilization could be "revolving utilization is too high." IMO sometimes they just want to list a reason to have it on the letter however tenuous the justification is.

Honestly I don't even really blame lenders for doing this type of thing. They're required to send a letter with denial reasons, but really the denial may be based primarily on completely internal factors. But 'doesn't meet our internal model' can't really be listed on the letter, so they have to cherrypick other stuff and then sort of reverse justify it.



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