Discover Platinum

Discussion in 'Credit Talk' started by lostinplac, Jul 28, 2000.

  1. lostinplac

    lostinplac Guest

    I can't quite figure it out, but why would Discover send me a "pre-selected" certificate
    for a Discover Platinum Card when I have a 2 year old charge-off with them for a few thousands? Funny Thing too, the same morning I received their "pre-selected" offer for a Platinum Card, I got a call from a collection agency wishing to settle for half the amount, although the collection agency would only give me a R-5 rating, which is no better than an R-9 with the CRA's. Any insights would be highly appreciated. Lostinplace
  2. Stormie

    Stormie Guest

    I have no idea why you recieved the pre-selected offer being you have an account currently in collections with them. But I know they do purchase information from all the CRA's and perhaps the just automatically sent it too you. Perhaps some one else knows. I often think their so called pre-selected offers are just invites to apply. They probably generate a large amount of applicant's using that method. As for your collection account with them- it's great they are willing to settle for half the amount, it would be better if they would give you a better rating then R-5. I would work on that with them if your in a position to pay them. Obviously if you don't pay they don't get any monies,(collection agencies get a % of the collected amount) if you pay them the agreed upon amount they are really not losing anything but their interest. I think it would be in their interest to work with you and give you a better rating at least.
  3. lostinplac

    lostinplac Guest

    I agree Stormie,
    I got a letter from their collection agency about 21 days ago, introducing themselves by a single page letter. This morning was the actual phone contact with me and the collector harped on the morality of paying (and I eventually will pay, but only if it enhances my credit score, and doesn't reage my account). The current collection agency paid for my account from another collection agency that grew weary of me about a year ago. Now we are in the two year anniversary since my date of delinquency with the original creditor. I guess I'll hear from the collection agency after they calm down. Our first conversation was peppered with demands and raised voices on the collectors part, as I calmly listened and reasserted my intent, which was basically, "How does settling my account for an R-5 rating improve my credit situation?" The collector couldn't answer, so I bid him goodbye for now. Lostinplace
  4. doesn't me

    doesn't me Guest

    Pre Selected doesn't mean squat nowadays, it is juts a wasted inquiry. They preselect on ton of people everyday, just mean you have declared BK, etc.
  5. r-5

    r-5 Guest

    I think someone misled you as to what r-5, r-9, etc.. actually mean. They are indicators for the current status of an account. R means it is a revolving account, and the # indicates how far past due an account is. If someone were to report an account as r-5, it would mean that it is a revolving account and is currently 120 days delinquent. r-9 means it is a chargeoff or collection revolving account. r-1 means it is a current revolving account. an r-1 rating or an r-5 rating does not indicate anything aout past performance of the account, only current status. Hope this helps
  6. Steven Z

    Steven Z Guest

    r-5 is correct as far as the CRA's are concerned. Though I will say that an r-9 does mean something to them as they will immediately start selling your info to creditors and marketing firms who will attempt to 'push' credit restoration products and services your way.

    Now as far as the credit grantors your probably right as far as the "prime" credit card banks are concerned, I truly believe that anything below an r-2 is kiss of death to your prime hopes, well certainly with online applications. I will say as far as the sub-primer's go this will make the difference between being offered unsecured and secured offers.

    As far as other forms of credit, loans, car loans, and particularly mortgages their is a BIG DIFFERENCE, in interest rates and offers.

    Though if all you care about is credit cards, and you already got a bunch of sub-prime cards then tell the collection agency to either remove the listing or change it to r-1, we all know they can do so so laugh in their face when they tell you their lies, otherwise tell them their useless and to "@!#$ off" and you'll deal with the next collection agency.
  7. lostinplac

    lostinplac Guest

    I want to thank everyone who offered their advice and will hold out for a better rating, since I have nothing but time on my hands. Lostinplace
  8. Manny

    Manny Guest


    I'm in a similar situation with Capital One. I have three accounts with them. Two Master Cards and one Visa. One of the MC's in current but the other 2 are not. I offered to settle both over a month ago for $00.50 on the dollar but have not received a formal response.

    Any advice?
  9. steve

    steve Well-Known Member

    I don't get it. If you settle a debt, you owe zero right? So, then, no money is owed. How is it then that the collection agency can report a past due status (R5 or 120+ days currently past due)? Do you mean the prior reporting status remains R5? Or, are you refering to the status in the current status collumn? I am suing Equifax over this very thing in Federal court right now. So, I'm really curious to find out how this can be.
  10. Steven Z

    Steven Z Guest

    RE: In today's credit world an

    Consider this, for years the BIG LIE out there was paying off your collection improved your credit score and re-enabled you to garner credit.

    When the reality was/is that the credit industry has set it up that a paid collection is EXACTLY the same as an unpaid collection, actually in many cases its worse as many collection agencies/creditors will illegaly re-age the account date.

    Finally, the truth has gotten out, helped considerably by all the interest in credit scores and their definations and explanations , so in response to this you now see collection agencies offering an R5 rating.

    While in the past an R-5 would definately be preferable to an R-9 as far as loans are concerned, anybody whose read any posts about the trials and tribulations of students who have defaulted and then paid can see that an R-5 rating equals automatic declination for credit cards.

    It is my opinion that this is yet another arrangement between the credit industry/CRA's and collection agencies, similar to what the mortgage industry has with the collection industry and the collection agencies have with the CRA's.

    In that, the new threashold for rejection is now an R-5, which now becomes as bad as an R-9, naturally as is always the case government agencies, loans and subsidies are excluded from this cartel of collusion.

    As far as paid student loans are concerned taking the above theory of collusion into consideration 'perhaps' Equifax feels that they may be less liable reporting an R5 rating than an R9 since the government has decreed that rehabed loans cannot be listed as collection.

    Only way to really find out the truth is sue them and win.
  11. RichGuy

    RichGuy Guest

    Another Bogus Offer

    The "pre-selected" offer from Discover Platinum apparently involved very little screening. Yes, they got me to apply, even though I was well aware that the terms were very different from a genuine preapproved offer. But I was quite surprised that the ONLY negative they mentioned was a collection item. They could easily have screened for that.
  12. RichGuy

    RichGuy Guest

    I have one or two collections, over three years ago. They seem to be on my Experian report, which torpedoed my Discover Platinum application and which I haven't obtained yet. Collections that old were consistent with my obtaining unsecured subprime cards from Providian, Capital One, and "Aspire Diamond Visa," as well as a prime card from Chase, which pulled only a Trans Union report.

    Sometimes there is only a 33% chance that a collection will come back to haunt you, particularly with non-bank collections.
    The collection may be reported to only one of the three CRA's.
  13. RichGuy

    RichGuy Guest

    A Motivational Classic

    By the way, Steven Z, thanks for your last paragraph. It's a motivational classic, one that I'll need about a year from now.
  14. RichGuy

    RichGuy Guest

    Perverse Incentives

    God bless you for standing up to the credit creeps. Those people have lost any right to assert moral claims on anyone, since their own system punishes people for doing the otherwise moral thing. Enforcing perverse incentives is far and away the most immoral act in the universe.
  15. Steven Z

    Steven Z Guest

    RE: Perverse Incentives

    How does the act of sending an unsolicited guaranteed pre-approved offer of a card with the charged-off debt at or past the 7 year mark to a former customer.

    Poisened apple indeed!!!

    Citibank is notorious for practising this most insidious of practises, yet they maintain a policy of NEVER removing a charge-off or changing it from R-9 even if paid in full.

    Then to top it all off if your sucker enough to accept it they'll report you as 30-day late on your first billing.

    How's that for two-faced, hypocritical immoral acts!

    I can see your already anticipating your battles with the collection agency scum just remember the refrain "Its total deletion, R-1 listing or bust!"
  16. RichGuy

    RichGuy Guest

    Liberty or Death

    Thank you again, Mr. Z. You are the Patrick Henry of credit repair.
  17. CardReport

    CardReport Guest

    It appears that the mailing lists for some credit card solicitations do *not* come from the credit bureaus, and are *not* screened against their files.

    I know someone who uses pseudonyms for things like magazine subscriptions and other situations that are likely to result in the distribution of the name and address, in order to track junk mail list proliferation. Discover, MBNA, First Premiere, etc. have sent "Pre-Approved"/"Pre-Selected" credit card offers to name/address combinations that have never been used for credit purposes.

    This suggests that they are just using very vague demographic marketing lists (e.g. "Fortune" magazine subscribers are probably affluent.)

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