Discover's Triple-Nerf

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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CarefulBuilder14
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Discover's Triple-Nerf

Postby CarefulBuilder14 » Wed Jul 01, 2015 12:35 pm

Within the last few weeks...

1. Discover's 2x rewards promo was closed to old customers. All new customers get it, and old customers who already got it keep it. New requests from old customers get shot down.

2. The CLIs every 16 days have stopped.

3. The announcement went out that certain travel benefits will soon end.

That's a big reversal for one month!

I'm not really bothered, since I'm grandfathered in for 2x rewards, my $3k CL is enough for me on a limited-use card, and I already have better travel cards. I can see how others would be irritated.

Discover is still a good card and I'm keeping mine - but this looks like a major change in the card's direction. What else can we expect?
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MemberSince99
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Re: Discover's Triple-Nerf

Postby MemberSince99 » Wed Jul 01, 2015 3:56 pm

Knowing them, it wouldn't shock the hell out of me if they clawed back some of those CLIs they were handing out like candy.

God forbid you have higher than 2k limit with them, UNLESS your credit is mediocre, then they want to give you 8 or 10k to start.

I'm kind of surprised there haven't been reports of this. Well actually I did see one on FICO but who knows if it's really true.

Even with the 2x rewards, I'm not going to give it heavy use. When I thought there was a chance I could work up to a 10k limit, I cared, but now I just don't. Citi is going to get the swipes, even at a lower reward rate. I'm not playing that silly game hoping it will pay off someday that's what the lottery and marriage are for (and work, if you're REALLY a sucker).

yfan
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Re: Discover's Triple-Nerf

Postby yfan » Wed Jul 01, 2015 6:16 pm

CarefulBuilder14 wrote:Within the last few weeks...

1. Discover's 2x rewards promo was closed to old customers. All new customers get it, and old customers who already got it keep it. New requests from old customers get shot down.

2. The CLIs every 16 days have stopped.

3. The announcement went out that certain travel benefits will soon end.

Only #3 can be considered a nerf. The first is a time-limited/new-customer promo and cannot be expected to last indefinitely. #2 was never the norm, it was more a glitch that many happened to have taken advantage of and which they now seem to have patched.

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CarefulBuilder14
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Re: Discover's Triple-Nerf

Postby CarefulBuilder14 » Wed Jul 01, 2015 6:46 pm

yfan wrote:
CarefulBuilder14 wrote:Within the last few weeks...

1. Discover's 2x rewards promo was closed to old customers. All new customers get it, and old customers who already got it keep it. New requests from old customers get shot down.

2. The CLIs every 16 days have stopped.

3. The announcement went out that certain travel benefits will soon end.

Only #3 can be considered a nerf. The first is a time-limited/new-customer promo and cannot be expected to last indefinitely. #2 was never the norm, it was more a glitch that many happened to have taken advantage of and which they now seem to have patched.

I liked the Triple-Nerf title, so just went with it.

You're probably right on the technicalities for #2. It definitely could not go on forever. But not everyone would have been eligible, since it was a credit quality decision and wasn't guaranteed. Customers can still get CLIs, just not so rapidly. Credit standards were just temporarily relaxed a little.

From the fact that #1 was open to anyone with an existing account, though, I'd call the vanishing 2x promo a nerf (even though the 2x only lasts a year). Other Discover promos have usually been targeted and linked to spending and payment patterns, or life events (I've heard of them for getting married and moving). 2x wasn't really targeted since anyone with an existing card was, for a short time, eligible.

So I'd say Discover very briefly improved their old cards' rewards, then nerfed them back to their original state with (largely) credit geeks surviving.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

MemberSince99
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Re: Discover's Triple-Nerf

Postby MemberSince99 » Wed Jul 01, 2015 6:57 pm

It was a nerf.

I still can't believe they are doing double rewards. I am guessing they hoped not many people would find out they could contact them and get it. But if they really don't want to give it out all they have to do is say no.

Oh well.

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Re: Discover's Triple-Nerf

Postby kdm31091 » Wed Jul 01, 2015 9:12 pm

CarefulBuilder14 wrote:Within the last few weeks...

1. Discover's 2x rewards promo was closed to old customers. All new customers get it, and old customers who already got it keep it. New requests from old customers get shot down.

2. The CLIs every 16 days have stopped.

3. The announcement went out that certain travel benefits will soon end.

That's a big reversal for one month!

I'm not really bothered, since I'm grandfathered in for 2x rewards, my $3k CL is enough for me on a limited-use card, and I already have better travel cards. I can see how others would be irritated.

Discover is still a good card and I'm keeping mine - but this looks like a major change in the card's direction. What else can we expect?


Realistically, I don't see any of this as nerfing other than #3.

#1 - who knows really if it was EVER intended for existing customers? The internet makes things spread quickly so people heard about it and asked for it. Discover obliged (likely to please the customer rather than out of original intent) until they likely realized the cost of giving it to every single existing customer who asked was too great, so it is what it is. It is essentially a "sign up bonus" of doubled rewards after a year -- most cards don't give existing users a sign up bonus again, so really, anyone who happened to get it should be considered lucky. It's not a nerf; it's just something those who couldn't get it are annoyed about. There's a difference.

#2 - the CLI was some kind of glitch that people gamed too much and obviously again, was too expensive for them to continue. No one should expect CLIs every 16 days or even close to that. And a lot of people especially on MF post doom and gloom as if Discover has suddenly declared they will never increase anyone's credit line again. That's not even slightly true. You just have to wait and earn it, like with any other issuer. No free lunch.

#3 yes some benefits were removed so that could be a nerf, but they were relatively minor benefits considering the IT card is not a travel card and surely you have travel cards with the same benefits.

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Re: Discover's Triple-Nerf

Postby MemberSince99 » Thu Jul 02, 2015 5:54 am

Uh, "wait and earn" a CLI? How exactly do you "earn" a CLI? It's not an executive's annual bonus, or a raise.

Discover has always been "conservative" on limit. Cap One is better these days sad to say.

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Re: Discover's Triple-Nerf

Postby takeshi » Thu Jul 02, 2015 7:57 am

Repeating what yfan & kdm said but I wouldn't consider 1 & 2 nerfing either. 1 was a promotional offer and anyone expecting it to be offered in perpetuity has a problem with entitlement and not nerfing. 2 wasn't something officially offered. 3, however, is nerfing.

MemberSince99 wrote:God forbid you have higher than 2k limit with them, UNLESS your credit is mediocre, then they want to give you 8 or 10k to start.

Discover does seem to have an odd tendency to give out higher limits to those with thin but clean profiles. However. plenty of people do have higher limits with Discover. If Discover doesn't work for you then you don't have to use them. I'm surprised you haven't dropped them already.

MemberSince99 wrote:Uh, "wait and earn" a CLI? How exactly do you "earn" a CLI? It's not an executive's annual bonus, or a raise.

Discover has always been "conservative" on limit. Cap One is better these days sad to say.

While creditors can and do have varying underwriting criteria and can also change their criteria, limits and CLI's are based on what one's credit and income qualify for. One cannot rely simply on creditor and/or product to determine limit. Even a "generous" creditor isn't going to issue high limits to one with a poor/thin profile. A "conservative" creditor may offer less to a given credit profile than a less conservative creditor but that doesn't mean that one cannot get high limits with a conservative creditor. For example, my highest limit is from PenFed and they are notoriously "conservative".

Given that, a CLI is earned by improving one's credit profile. That is -- unless one's credit profile already had the headroom for a CLI.

CO is just the latest bandwagon that everyone on myFICO is jumping on and like all previous bandwagons that wagon will depart at some point. It just may take longer with CO since it's a much bigger entity than OCCU or NASA.

yfan
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Re: Discover's Triple-Nerf

Postby yfan » Thu Jul 02, 2015 8:53 am

CarefulBuilder14 wrote:From the fact that #1 was open to anyone with an existing account, though, I'd call the vanishing 2x promo a nerf (even though the 2x only lasts a year). Other Discover promos have usually been targeted and linked to spending and payment patterns, or life events (I've heard of them for getting married and moving). 2x wasn't really targeted since anyone with an existing card was, for a short time, eligible.

So I'd say Discover very briefly improved their old cards' rewards, then nerfed them back to their original state with (largely) credit geeks surviving.

Time-limited promotions, regardless of who it's given to, are not a permanent benefit. When other cards (Amex, for example) change their sign-up bonus that temporarily went up, I don't often see them being accused of nerfing.

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Re: Discover's Triple-Nerf

Postby kdm31091 » Thu Jul 02, 2015 9:49 am

MemberSince99 wrote:Uh, "wait and earn" a CLI? How exactly do you "earn" a CLI? It's not an executive's annual bonus, or a raise.

Discover has always been "conservative" on limit. Cap One is better these days sad to say.


It isn't complicated. Show a good history. Use and pay off the card. Discover has never denied me a CLI as long as I wait a reasonable amount of time ( few months) between asking. 16 days is not a reasonable amount of time. That's what I meant by earning the CLI. You have to show them you use the card enough to warrant it.

CLIs do have to be earned in that sense. They aren't just given in exchange for time. They're given if you show that you need/deserve it. If one spends $2 a month on their Discover for example, why on earth would Discover care to give them a CLI? (Not saying that's you, but it's the attitude of many on MF, they barely use a card yet they want the limit to skyrocket)

You sound like someone who dislikes Discover and that's fine, but it also means you likely just SD the card....in which case, you probably aren't getting a CLI. A catch 22. But if you don't like them you don't like them.



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