More and new Discover idiocracy.....

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
Iroquois
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The "rap" is factual and warranted

Postby Iroquois » Mon Aug 15, 2011 11:20 am

I agree, "to each their own".
But, Discover gets a very warranted "rap" if they are non competitive. They either are or they aren't at any point in time. They get more BBB complaints than some competitors and have a lower rating.
My personal experience and experiences that I've heard of directly from others raises concerns.
That said and in fairness, the majority of posters on this board seem happy with the card, and entertained by their advertising.
It is always good to have more than one card and have it from a different issuer for a host of reasons. It builds credit, and allows for issuer issues and issuer cahnges.
If a card is working for you then thats great, if its not then vote your choice in how you use it. But at least be aware that there may be issues, when they are raised and do your best to separate the "real deal" from the hype.
Each issuer changes with each day in its own performance as it evaluates how it is performing, what's important to them and what its competition is doing.
The comment that Discover rewards usage may be true (although logic suggests that things like creditworthiness ( as they apparently uniquely percieve it) may enter the picture ( a couple of my bank cc are a huge multiple of the Discover line, with a bureau report that has never been delinquent and a multi year Discover customer). Now, if I want to buy something large I will use the card with the best terms at that point in time, as I suspect many others would too- seemingly a common sense approach.
My suspicsion is that there is a "gulf" at various points between Discover organization units and various levels in the hierarchy of its management chain. Discover as basicly a monoline institution who's business is prmarily credit cards may not have the capital to take on the consumer credit that others are, and may be more conscerned and less able to ride out the economic cycle rough patches.


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Postby DavidNY » Thu Aug 18, 2011 5:42 pm

Iroquois wrote: ( a couple of my bank cc are a huge multiple of the Discover line, with a bureau report that has never been delinquent and a multi year Discover customer)


You're not the only one in that situation. I've pretty much retired my Discover card except possibly for Double Birthday rewards month.

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Postby Money card » Fri Aug 19, 2011 9:21 pm

so Dave you don't like your Discover either? is it because you don't like the customer service like Iroquois, the amount of places compared to visa/mastercard and American express, or their low caps on rotating categories?

which card do you like better American Express or Discover?

which level American Express do you have and which card design do you have for Discover?

as for me I have the Green American Express personal card and the original Black Discover.

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Postby DGenerateKane » Fri Aug 19, 2011 9:49 pm

I'm retiring my Discover card as well. I didn't realize until reading this thread I had to make $3000 in purchases just to get 1%. What really pisses me off is I did reach that threshold 3 months ago, but after calculating my cashback last month I only got .25% still. I'll be sending Discover a nasty message within the week.

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Postby sticf » Sat Aug 20, 2011 7:33 am

Iroquois wrote:I agree, "to each their own".
But, Discover gets a very warranted "rap" if they are non competitive. They either are or they aren't at any point in time.


I agree that their program may need a "face lift" soon. With the Chase Freedom mirroring their rewards program (5% on rotating categories per quarter when you sign up). Discover may want to think about either:
a. Increasing their spending cap per category (Discover ranges from $300 to $800 - Chase is $1500)
b. Reducing their $3000 tier to reach 1% on everything. (Chase Freedom has $0)

However, I still would not count Discover out. Some people may have had bad experiences with their customer service. However, there are plenty that have had nothing but smooth sailing (I am one of them). I am no fan of most of the bigger banks in the US (Citi, Chase, Wells Fargo, BoA). I have dealt with many of them for different items in the past. Dealing with Discover's customer service is like a mini vacation compared to some of these other places. Discover has always been responsive, respectful, and reasonable when I contact them. If your experence differs then you by all means "vote with your wallet" and choose not to use the card.

I am actually placing my Discover in the safe for a while and breaking out the Freedom. With the changes to the rewards program (thanks to this site for posting a new review) it is worth the switch.

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Postby DavidNY » Wed Aug 24, 2011 9:34 pm

DGenerateKane wrote:I'm retiring my Discover card as well. I didn't realize until reading this thread I had to make $3000 in purchases just to get 1%. What really pisses me off is I did reach that threshold 3 months ago, but after calculating my cashback last month I only got .25% still. I'll be sending Discover a nasty message within the week.


Remember its $3000 annually, so if you get an account in Jan 2000, the clock resets in Jan 2001 and you have to start all over again.

I don't like how they say "up to 1%" rewards in big letters with an asterisk and burying the fine print.

Iroquois
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Discover spending limits appear non-competitive

Postby Iroquois » Thu Aug 25, 2011 6:13 am

I think the point has been the non-competitive aspects of Discover, and each individual going with what works for them. In my case I've found Discover's customer service and credit operations to be more flash than real substance.
My strong sense too though is that Discover is not at all competitive in its risk management from those I've spoken to or my own experience in credit lines issued. Line availability, acceptance and rates/terms are the usual factors in being competitive. Most don't get a card or use it because of customer service unless they've had a bad experience or are otherwise concerned (which is why their advertising with Peggy while cute is surprising and highly questionable. My Bank of America, Chase and Citi cards are multiples (plural) of the Discover credit line.
While functionally non competitive as a payment device and deserving a back of the wallet status for now, Discover's website is one of the better ones out there at present

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Postby CC Deville » Thu Aug 25, 2011 8:00 pm

As mentioned before, Discover is a conservative lender; and that is a good thing since they weathered the Great Recession better than most other credit card companies. Discover likes to see USAGE. If they issue a $4,000 initial limit and the card is used for $100 a month, their risk profiles detect that the $4K limit is adequate. If you are running $1-$3K per month, then the system will give auto CLI's to reflect your spending habits. While $20K Discover limits are rare, they are not unheard of either. Keep in mind too that Discover (much like Amex) is not a traditional bank. They do not have the deposits that Citibank, BofA and Chase have to borrow against. They have to mitigate their risks differently.
I opened my Discover when it was more competitive, and frankly, it was one of the only cash back reward cards on the market. I will fully agree that their rewards have become signficantly less competitive in the past 5 years or so and that is the reason I switched to Citibank Dividend and Chase Freedom. I only use my Discover for the 5% quarterly bonus on gas. If they got rid of the tiers (.25% .25% .5% up to $3K, 1% thereafter) and replaced it with a flat 1% plus quarterly bonus offers they would be in line with Citibank and Chase.
To anybody unhappy with their current Discover credit line I would suggest that they use it extensively for the next six months and watch the automatic CLI come in. Without frequent usage they do not feel that you need any additional credit. And that is how it should be. Starting in the late 1990's Americans became obsessed with instant gratifaction and now if a card doesn't start out with at least $10K it is considered a personal attack.
You are certainly entitled to your own opinions, but if you are this unhappy with Discover, then why not close it?

Iroquois
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That logic escapes me

Postby Iroquois » Fri Aug 26, 2011 8:19 pm

Interesting views and I appreciate what you are saying. However, if someone is unhappy with a product or feature, then the logic of using it more and rewarding an issuers poor behavior, seems a bit challenging to reasonably embrace. The suggestion that the problem is with the consumer rather than the provider of service is a formula that haunted the American auto industry for many a year; there were some very good reasons that consumers voted to buy imports. The fact is that Discover has access to very similar data that other issuers have and chooses not to be competitive in many cases regarding credit line management , rewards or service. If being non competitive works for their business model, then so be it, but thats not sustainable and will eventually change.

Card practices change at different issuers. So what happens today can change with any issuer. As to closing a perfectly valid open credit line if anyone becomes unhappy, there simply is no reason to and in fact many reasons why closing any credit line can work against a credit score. Thats simply the way the system works But, there is every reason to discuss competitive issues and performance issues, Discover having both ( in fairness so do other issuers - I just haven't had similar experiences).

But if the suggested logic is to vote with one's action if a product is not working or there is unhappiness, then that is something I agree with and is exactly what is happening. Discover is back of wallet product for now in my opinion, for perfectly valid competitive and operational rationale. Those topics are being discussed fairly and reasonably by people who have an interest in these matters.

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Postby JNK » Sun Aug 28, 2011 4:49 am

I think - as with all cards and card companies - loyalty makes a difference and maybe just... luck of the draw?

My parents' oldest card is their Discover card - the one that they can buy a new car on and have credit left over and the one that gives them WTF-low-as-can-be APR - and Discover is the same company that - to this date - has done all kinds of things for them in providing nothing but the best customer service.

I have never had any personal dealings with Discover myself, but I have found that my own experiences in general in regards to credit and credit companies have been very positive - even when others have reported negative experiences. That said, I have been seriously considering adding a Discover card... but hmmm.
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