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  1. #1
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    Post Why was my Discover card application denied?

    Hello everyone. I want to share my experience with credit in general and Discover More in particular; maybe you can help me do the right way.

    Three years ago I had no credit history at all. To build a credit, I got one of these secured CCs and I've had it for about 17 months .. excellent payment history (never late). Then about 10 months after getting this one I applied for Credit One Bank CC and was approved for a $300 card. That was my first unsecured CC.

    In September of 2011 I got a car loan from Wells Fargo Dealer Services.

    Unfortunately, I quit my job because of school (EE! ) which made me be late to one payment then I paid off the loan completely with help of my parents.

    In addition to this, I have an installment loan from a non-profit agency that is reporting some late payments. Actually six to be precise over the course of 3 years. Some of them are recent.. like in 2012. But the late payments were not something I could control, I've moved and forgot to notify that agency of the change in address. So for several month they were sending the statements to the wrong address. I disputed the late payments and that is still in process.

    Recently, I've decided to establish a credit with the big players. So I applied and got approved for the following cards:
    • Chase Freedom $500 ,
    • Bank of America Platinum Plus $800 ,
    • AMEX Blue Cash Everyday $1000 ,
    • AMEX Green

    Finally, I applied for the student credit card with Discover and my application got instantly denied. The reasons they mentioned did not make any sense to me. They mentioned that my history is too short ! And my loan balances are too high .. and also my CCs balances are too high.

    I puled my TransU report and didn't find any of that .. my balances are quite small ... both below %40 .. my loan balance is $159 [original $1100].

    I called and they told me about the late payments. Now .. is there a way to convince them to look at the positive part of the history and give me chance to prove myself? I mean just by looking at that period .. I paid a $10,000 loan completely so why would I damage my credit by defaulting another account ? No sense!

    Any thoughts?
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  2. #2
    Centurion Member MemberSince99's Avatar
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    Did you call them to reconsideration? Since you took the inquiry hit for the application anyway there is nothing to lose - the worst that can happen is the answer is still no.

    I would guess with Discover it's a combination of things. They would probably like to see more age on your accounts with lower utilization and add in a late and they may be a bit gun shy as they are very conservative about approvals.

    If recon doesn't work just pay down your balance to under 10% before you apply again and give it 6 months and recon again if need be.
    FICOS
    TU: 771 April 2014
    EQ: 777 April 2014
    EX: 779 April 2014
    TU08 (Barclay's) 798 April 2014 Statement
    Discover 791 June 15 2014

    Cards:
    Amex Platinum NPSL (5/13 - backdated to 5/99)
    BofA Travel Rewards Signature Visa 10k (1/14)
    Chase Freedom Signature Visa 11.5k (1/14)
    Amex Everyday Preferred 6k (3/14 - backdated to 3/99)
    Amex Hilton HHonors Surpass 9.5k (7/14 - backdated to 7/99)
    FNBO Dodge MasterCard 12.8k (8/14)
    Lowe's 10k (8/14)

    Garden: Card carrying Garden Club member. Gardening for life (and beyond)!
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  3. #3
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    That approach (reducing the debit ) actually worked with Chase pretty well. They approved me once they saw my debit was reduced significantly (although the CL wasn't so high .. !).

    Discover keeps looking at the bad point in the credit report. I called and they said You have a series of late payments .. We do see that it's disputed but it must be fixed before we can approve you. They are overlooking the fact that during that same period my credit card payments were just perfect and that I paid off a car loan in full. So why would I damage my credit by defaulting one of my loans? Doesn't make any sense.
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  4. Centurion Member MemberSince99's Avatar
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    Quote Originally Posted by altayar88 View Post
    That approach (reducing the debit ) actually worked with Chase pretty well. They approved me once they saw my debit was reduced significantly (although the CL wasn't so high .. !).

    Discover keeps looking at the bad point in the credit report. I called and they said You have a series of late payments .. We do see that it's disputed but it must be fixed before we can approve you. They are overlooking the fact that during that same period my credit card payments were just perfect and that I paid off a car loan in full. So why would I damage my credit by defaulting one of my loans? Doesn't make any sense.
    Well, that is how they see it, and since they've told you what has to happen before they approve you, then that's what has to happen before they will, so be sure it's off your report one way or another before app'ing again with them so you don't waste an inquiry.

    I know from our perspective something doesn't make sense but they don't know us so they have to protect themselves against potential losses the best they can.
    FICOS
    TU: 771 April 2014
    EQ: 777 April 2014
    EX: 779 April 2014
    TU08 (Barclay's) 798 April 2014 Statement
    Discover 791 June 15 2014

    Cards:
    Amex Platinum NPSL (5/13 - backdated to 5/99)
    BofA Travel Rewards Signature Visa 10k (1/14)
    Chase Freedom Signature Visa 11.5k (1/14)
    Amex Everyday Preferred 6k (3/14 - backdated to 3/99)
    Amex Hilton HHonors Surpass 9.5k (7/14 - backdated to 7/99)
    FNBO Dodge MasterCard 12.8k (8/14)
    Lowe's 10k (8/14)

    Garden: Card carrying Garden Club member. Gardening for life (and beyond)!
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  5. #5
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    I've already started the process
    I sent a letter to my lod lender asking him to remove the late payment posted one time on my report. I haven't heard back yet.
    The other lender refused to remove the late payments (about six) although it was their mistake that they didn't have the right address. So I disputed this one.
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  6. #6
    Centurion Member MemberSince99's Avatar
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    Quote Originally Posted by altayar88 View Post
    I've already started the process
    I sent a letter to my lod lender asking him to remove the late payment posted one time on my report. I haven't heard back yet.
    The other lender refused to remove the late payments (about six) although it was their mistake that they didn't have the right address. So I disputed this one.
    Perfect! I think any inaccurate info should be disputed as is our right, hopefully that takes care of it for you and gets you the More you are seeking!
    FICOS
    TU: 771 April 2014
    EQ: 777 April 2014
    EX: 779 April 2014
    TU08 (Barclay's) 798 April 2014 Statement
    Discover 791 June 15 2014

    Cards:
    Amex Platinum NPSL (5/13 - backdated to 5/99)
    BofA Travel Rewards Signature Visa 10k (1/14)
    Chase Freedom Signature Visa 11.5k (1/14)
    Amex Everyday Preferred 6k (3/14 - backdated to 3/99)
    Amex Hilton HHonors Surpass 9.5k (7/14 - backdated to 7/99)
    FNBO Dodge MasterCard 12.8k (8/14)
    Lowe's 10k (8/14)

    Garden: Card carrying Garden Club member. Gardening for life (and beyond)!
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

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